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Finance

Popular Cryptocurrency Types to Invest in 2021

bitcoin, ethereum, litecoin, monero

There is a range of different cryptocurrencies available to those looking to invest in the digital crypto world. You will be familiar with Bitcoin, which we will go over briefly, then recommend some other up and comers to view.

Bitcoin

Bitcoin is still the go-to cryptocurrency of the year. At the start of 2021, it enjoyed its biggest rise yet, which also meant it inevitably had to come crashing back down, which it did.

It operated over a global shared network that can contain thousands of individual nodes on the blockchain. This is where you’ll find data regarding financial transactions, which grows when users add blocks.

Bitcoin has been around for over a decade now, originating in 2008 after that year’s disastrous global economic crisis. Whilst money is valued against gold, Bitcoin is measured against the global financial transfer rate.

Ethereum

Ethereum is easily the second biggest token available on the crypto market, after Bitcoin. This coin works within a more specialised part of the blockchain, using a more innovative part of the technology.

As with most cryptocurrencies, the coin does work through the decentralised distributed ledger. The difference here, however, is that the technology that it is backed against is about creating other crypto coins, amongst other digital technologies. This makes it a valuable asset in the digital world.

You can probably imagine that if other cryptocurrencies are doing well, Ethereum will also benefit due to what it actually does.

Bitcoin Cash

This token is eerily similar to Bitcoin, as you’d expect with a name like Bitcoin Cash; the difference here, though, is that it operates on its own unique blockchain. This differentiates it from Bitcoin through processes, but the reason it was created is interesting.

You see, this coin was introduced as a means to process transactions quicker, but through liquidity and money. It originated a few years ago when crypto miners who were all after Bitcoin realised that it might not be a long-term coin to mine and was possibly not sustainable.

Tether

If you didn’t know, Tether is often referred to in the crypto world as the more popular stable coin in the world. Whilst other coins serve various similar purposes, Tether is mainly used within the market to help with volatility by providing liquidity and a hedge.

This stable coin still uses the blockchain much like Bitcoin, but this coin follows the global economy closer, such as the EU Euro of the GB Pound. This coin is transparent, allowing anyone at any time to access the transactional history.

Compared to other coins, you will most likely find this token involved in the digital security industry in some capacity. That’s because digital securities are considered one of the means of participating within the blockchain technology and still obeying regulations.

As an investor looking for a coin to invest in, you’ll be able to make better predictions through this coin, as it’s always backed against actual assets in the real world. This means you can look at real-life examples and know which way the market is going.