Type of cryptocurrency list

Types of cryptocurrencies in terms of blockchain is two. On our first article we discus about main points but today we will know about blockchain, these are

**Coin

No matter how many types of cryptocurrency are mentioned, the first thing that comes to mind is the name of the coin. Let’s start with Bitcoin. Generally speaking, coins that have their own blockchain are actually called coins. For example, Bitcoin has its own blockchain which is why Bitcoin is a coin. Or Ethereum has its own blockchain so we can call Ethereum a coin.

**Token

On the other hand, cryptocurrencies that do not have their own blockchain but are built on another blockchain are tokens. For example, Power Ledger is a token of Ethereum.

How cryptocurrency works?

Cryptocurrency is a digital currency that uses encryption to conduct safe and secure transactions. It is not controlled by any central authority, rather it is managed through a decentralized network. Mostly it’s work by two important things

1.Blockchain

2. Wallet

** Blockchain

Cryptocurrency uses blockchain technology. Blockchain is a database that keeps a record of every transaction. Each new block is linked to the previous block, which keeps the database secure.

**Wallet

Cryptocurrency transactions require a cryptocurrency wallet. A cryptocurrency wallet is a digital wallet that stores crypto. When making a transaction, users send or receive crypto from their wallet.

To make cryptocurrency transactions safe and secure, encryption is use. Encryption is a process that makes data completely obfuscated, which protects it from illegal access. Cryptocurrency transactions are usually encrypted using a public-key cryptography system. In this system, everyone has a public key and a private key. The public key can be use by anyone, but the private key is known only to the owner.

To confirm cryptocurrency transactions, a contentious process is use. The debating process is a competition where computers try to solve complex mathematical problems. The computer that solves the problem first creates a new block and adds it to the blockchain. For adding to the blockchain, the computer receives a new currency unit (coin). This process is called “mining”.

Advantages/ Disadvantages of Cryptocurrencies:

Cryptocurrencies have several advantages. They allow fast and cheap transactions, and they are not dependent on central authorities like governments or banks. However, cryptocurrencies also have some disadvantages. They are still relatively new and unstable, and they are vulnerable to fraud.

Some specific examples of cryptocurrencies are Bitcoin, Ethereum, and Litecoin. These cryptocurrencies are widely use’s worldwide and their value has increasing significantly.

The future of cryptocurrencies is still uncertain. They may become more widely accepted, or they may be a passing trend. However, cryptocurrencies represent an important evolution in financial technology, and they could shape the future of payments.

List of some popular cryptocurrencies

Currently there are different types of cryptocurrencies. There are different cryptocurrencies to perform different functions. Below we have list’s some of the popular cryptocurrencies.

Bitcoin
Ethereum
Litecoin
Dogecoin
remember
dot
BNB
Engine coin
Hope you understand the basic things you need to know about cryptocurrency. If you have any special question, you can tell us by commenting.