In the olden days, it was not difficult to count cryptocurrency on your fingertips. But times have changed drastically since then. In modern times, this is no longer possible. Cryptocurrency has expanded so much over the years that it is now impossible to keep track of every new type.
Let’s dive deeper into the world of cryptocurrency and explore what it actually is, and its various types.
What Cryptocurrency Actually Is?
Before we move to its types, let’s take a look at the basics: What is cryptocurrency? It is basically electronic money which is created and controlled through specific technology which is responsible for concealing the identity of the users.
What is the function of this electronic currency? Luckily, electronic currency has equipped people with newer methods to perform transactions. The need for banks and credit card companies has been eliminated through cryptocurrency.
The blockchain, a shared database is where these transactions are processed. The reason why it is referred to as a ‘shared database’ is simply because various companies and people control it, instead of one centralized company, like with a bank.
The Types of Cryptocurrency
Cryptocurrency is divided into three main types which are brought together at the blockchain. The first blockchain is referred to as bitcoin, which led to the creation of several other blockchains.
This is the main electronic currency that is sent to other people, either as a present, or for using services or products. Although it is like the money used in our bank accounts, it exists as a digital currency. The blockchain technology eliminates the requirement for a third party which gives you the advantage of performing transactions without revealing your identity.
There are thousands of types of altcoins that exist today but do not let that number devastate you! These new types are just modified versions of bitcoins. They are different in the sense that each miner is chosen to take their turn on every block.
Dogecoins are highly advantageous since transactions that involve Dogecoins are free from the traditional banking fees. Dogecoins are used for the trade of tangible goods on Twitter, Redditt, and other related platforms.
Safe moon is not exactly a cryptocurrency. It is used as a DeFi token, also known as a decentralized finance token. This type of cryptocurrency implements a 10 percent penalty tax fee for the purpose of rewarding people who choose to hold on to it, instead of trading it.
Coin Stirs: The Best Place for Purchasing and Investing in Cryptocurrency
If you’re looking for a reliable platform to purchase or invest in cryptocurrency then the best option is Coin Stirs. They offer several payment options for the trade of various cryptocurrencies. The best part is, trading with them means there’s no need to worry about any hidden fees or costs.
Cryptocurrency is become increasingly popular among people all over the world because it doesn’t just allow you to perform easy transactions, but it brings various other advantages as well. Stay tuned to coinstirs to stay updated.