Throughout the globe, the use of digital money has grown significantly in recent years. But as we all know, the cryptocurrency market is highly speculative, and its value is frequently changing every single time, and that’s why some people are afraid to invest in cryptocurrencies. Cryptocurrencies like Bitcoin, Litecoin, Ethereum, Tether, Ripple, the Oil Profit platform, and Binance coin are the most common and popular cryptocurrencies in the world but investing in all these cryptocurrencies is not possible for small-scale investors. So, you need to choose the best one for your portfolio.
Here, you can find some cryptos that can help you get a good return. Make sure to keep your eyes on the recent news, and you must know the right trading strategy to achieve success in this digital world.
6 most common types of cryptocurrencies:
Bitcoin (BTC): Bitcoin is considered the world’s first decentralized virtual cryptocurrency. A mysterious group of people originally developed Bitcoin in 2009. When bitcoin was invented, nobody thought it would one day lead the Crypto market, but now it has become the world’s largest cryptocurrency. Bitcoin is considered the safest cryptocurrency for investment and is based on blockchain technology to facilitate digital transactions more conveniently and quickly.
Bitcoin offers a direct transaction facility to its users so that they can quickly and safely transfer their assets from one wallet to another. No custodian authority is available in this network, and you can transfer your coins without any bank or government approval. Even you can also make cross-border or international transactions with BTC at less transaction cost. Due to its vast popularity and success, many big investors believe that BTC can replace the fiat currency in the coming years.
Litecoin: Litecoin was developed by an ambiguous person known as Charlie Lee in 2011. One of the main objectives of Litecoin is to facilitate easy and faster transactions with low charges. The developer of Litecoin aims to make Litecoin a means of payment with the lowest transaction cost.
Experts believe Litecoin is the closest rival of bitcoin because Litecoin recently secured the fifth rank in the Crypto market.
As we all know, Litecoin is a decentralized virtual currency like bitcoin. It is open source and runs on a Scrypt Algorithm to facilitate P2P transactions more conveniently.
Litecoin is the same as bitcoin, but one of the significant differences between them is that Litecoin offers faster transactions to users and takes a comparatively low transaction charge compared to bitcoin.
Ethereum: Ethereum is the world’s second-largest and most successful cryptocurrency after bitcoin. It was developed by an extraordinary man whose name is Vitalik Buterin. He is a legendary and well-known computer programmer.
Ethereum is also similar to bitcoin and uses blockchain technology to make P2P transactions. The native coin of Ethereum is known as Ether. It also offers an open-source network to users so that they can independently develop new applications on the Ethereum blockchain.
Tether (USDT): Tether is considered a stablecoin, but this currency is tied to a fiat currency, the US dollar. In simple terms, the price of Tether coins is directly tied up with the US dollar cost.
Tether, known as stablecoins, attempts to prevent price fluctuations to attract new users who are afraid to invest in cryptocurrencies.
The tether combines the profits of cryptocurrency, such as cutting the need of the middle man, with the stability of currency issued by the government.
Ripple: Ripple was invented by Chris Larsen and Jed McCaleb in 2012 as a solution for cross-border transactions for big financial institutions. Ripple also uses the same technology as bitcoin, and the primary purpose of Ripple is to facilitate transactions in big financial institutions and corporations. When Ripple was not invented, international transactions took some days to complete the whole payment process with high transaction rates. But Ripple was mainly developed to solve this issue via blockchain technology.
Ripple is second the third rank in the Crypto market and runs in Ripple Protocol Consensus Algorithm. However, the possible growth of Ripple is very limited because the primary function of Ripple is to facilitate cross-border transactions.
Binance Coin (BNB): A utility cryptocurrency produced by the Binance exchange, Binance coin (BNB) trades mostly under the symbol BNB.
The Binance coin runs on the Ethereum blockchain and helps boost the functions of the Binance exchange, and supports numerous utilities like trading and exchange fees and any other charges on the Binance exchange.
Currently, many cryptocurrencies are available in the Crypto market, and a new one is entered every day. Everyone knows that every cryptocurrency is based on the same blockchain technology, and each is highly volatile. Due to this nature, the value of cryptocurrency frequently changes. Every cryptocurrency has its pros and cons. Profit Bitcoin is the most wonderful platform that offers users plenty of facilities so they can invest their money in cryptocurrency without any stress and hesitation.