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The Future of Finance: A Guide to the Top 7 Cryptocurrencies

People will be anxious to know the types of Cryptocurrency, well there are several types of cryptocurrency, each with a unique value and mode of operation. 

This article will discuss the only 7 most renowned types of Cryptocurrency that most people use for exchanging goods and services. Before going to discuss types of Cryptocurrency, I would like to define the first Cryptocurrency.

What is Cryptocurrency? 

A cryptocurrency is a form of digital currency. People use cryptocurrency to purchase and sell goods and services online. 

Many organizations have built their currency, known as tokens, and they use them to exchange goods or services. 

You have to trade real money for Cryptocurrencies to exchange goods or services. Digital currency aims to serve as a medium of trade.

7 best types of Cryptocurrency

1. Bitcoin

Bitcoin is a digital currency that was first introduced by Satoshi Nakamoto in 2009. It's one of the most widely used digital currencies today. It was launched as open-source software in 2009.



How does it work?

Bitcoin helps consumers to conduct anonymous peer-to-peer transfers due to blockchain technology. These transfers are visible to all users, but they have protection due to the blockchain's algorithm. Anyone can see the transaction. 

Only the bitcoin's owner with the help of a "private key" can encrypt the transaction. There is no central authority figure in Bitcoin. Bitcoin users have complete control over the sending and receiving of money, allowing for anonymous transactions all over the world.

2. Litcoin

Litcoin was developed as a Bitcoin alternative in 2011. Litecoin is an open-source and multinational payment network. It has decentralized property, which means it has no central authority.



What exactly is the distinction between Bitcoin and Litecoin?

The following are some of the distinctions between these digital currencies:

       1. Faster transactions are a prominent characteristic of Litecoin.

       2. Bitcoin has a 21 million coin limit, while Litecoin has an 84 million coin limit.

       3. The Litcoin uses a "scrypt" algorithm, while Bitcoin uses the "SHA-256" algorithm.

3. Etherum



Ethereum is a type of cryptocurrency. It was introduced in 2015 as an open-source framework. It usually focuses on blockchain technology. 

Though the Ethereum blockchain focuses on monitoring ownership of the digital currency transactions, It also executes any decentralized application's programming code, allowing developers to pay for transaction fees and Ethereum network utilities.

4. Bitcoin Cash

Bitcoin Cash is a digital currency. It was created to build upon some of the features of Bitcoin. Bitcoin Cash expanded the block size, allowing for quicker processing of more transactions.

5. The Ethereum Classic

The Ethereum Classic blockchain is a subset of the Ethereum blockchain. It uses a similar open framework to manage smart contracts. 

Smart contracts are applications that perform their activities with no downtime, censorship, theft, or third-party interaction. It, like Ethereum, has a value token dubbed "modern ether" to pay for goods and services.

6. Zcash



Zcash is a cryptocurrency that was created using the Bitcoin codebase. Scientists from MIT, Johns Hopkins, and other prestigious academic and research institutions developed this type of currency. 

The focus on privacy is a key function and differentiation of Zcash. Users can send and receive Zcash without reporting the sender, recipient, or transaction number, which is not a feature open to investors on Equity Trust's website.

7. Stellar Lumen

The Stellar Lumen is a currency that acts as a bridge between two different currencies. A consumer will submit any currency they own to someone else in a separate currency using Stellar. In 2014, Jed McCaleb developed the open-source Stellar network and created the network's native currency.

Conclusion 

The future of finance is changing with the top 7 cryptocurrencies leading the way. Each one brings something unique, like Bitcoin's role as the first cryptocurrency and Ethereum's smart contracts. 

As the world of crypto keeps evolving, it's important to stay informed and be cautious. Embrace the new opportunities, but always invest wisely and understand the risks. 

Cryptocurrencies are just getting started, and they promise to have a big impact on the global financial system.

 

Location: Pakistan

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