Cryptocurrency is taking up many digital transactions, especially international ones and one is wagering on over under bets. For a currency that started operations just over a decade ago, it is quite commendable.
When someone mentions the word cryptocurrency, it is common for you to think of bitcoin. To some extent, some people think bitcoin is another name for cryptocurrency.
It is understandable given that bitcoin was the first to be invented among all the types of cryptocurrencies. We will discuss the eight most popular types of cryptocurrencies.
Bitcoin was the first cryptocurrency to hit the market in 2009. Commonly denoted as BTC, a bitcoin can be split into smaller denominations like millibitcoin (1 mBTC = 0.001 BTC) and satoshis (1 sat = 0.00001 mBTC = 0.00000001 BTC)
It is believed that Satoshi Nakamoto mined the first blockchain of bitcoin, but it is not known who is behind it. Supply and demand, and media hype, among other factors, lead to fluctuation in the value of 1 BTC.
In November 2021, the value of bitcoin was USD 68,000, but by January 2022, it dropped to less than USD 35,000.
Bitcoin has a cap on the number of coins that will ever be in supply. That number is 21 million. As of December 2021, 18.9 million bitcoins were in supply.
Ethereum was the second cryptocurrency to hit the market after bitcoin, in 2015. Vitalik Buterin is a Canadian who is known to be the founder of Ethereum. Ethereum is represented as ETH in short form.
Just like bitcoin, the value of Ethereum fluctuates due to different factors. By November 2021, 1 ETH was estimated to be worth over USD 4,800. The number of new Ethereum coins to be pumped into circulation is capped at 18 million in a year.
As of April 2022, there were over 120 million Ethereum coins in circulation.
Binance Coin first came into circulation in 2017. It is issued by Binance Exchange, a platform that was founded by Pangcheng Zhao. Binance Coin is commonly written as BNC.
Initially, the Binance coin was operated on the Ethereum blockchain but currently is on its blockchain platform. Binance Exchange created a maximum of 200 million BNC. They intend to reduce this value to have 100 million BNC in supply.
As of May 2022, 1 BNC was equivalent to USD 317.67. This value keeps changing due to the factors that affect cryptocurrency in general.
Cardano is a cryptocurrency that was developed by Cardano Foundation and was released into circulation in 2017.
The Cardano coin has a lifetime supply capping of 45 billion coins. By November 2021, over 33 billion coins were already in circulation. The value of the Cardano coin keeps fluctuating, but as of May 2022, one Cardano(ADA) coin was worth USD 0.453.
Parity Technologies developed Polkadot and released it into circulation in 2020. Polkadot is unique because it allows different blockchains to operate with each other. This includes both blockchains with permissions and those without.
The DOT is the short form of representing Polkadot. As of June 2021, over 952 million DOT were in circulation. However, there is a capping on the maximum number of 1.083 billion Polkadot coins that will ever be in circulation.
As of May 2022, the value of one Polkadot was estimated to be worth USD 8.33 to the minimum and USD. 9.37 to the maximum.
Dogecoin was created by Billy Marcus and Jackson Palmer in 2013. When it comes to circulation, dogecoin has the most coins in circulation compared to other digital currencies. By January 2022, over 132 billion dogecoins were in circulation.
Dogecoin doesn’t have a capping on the number of coins to be in circulation. DOGE is expected to trade at a value ranging from USD 0.083 to USD 0.094 per one dogecoin in 2022.
Litecoin is a cryptocurrency that was developed by Litecoin Core Development Team in 2011. Just like Bitcoin and Ethereum, Litecoin has a capping on the amount to be in circulation. Litecoin has a supply limit of 84 million LTC.
As of August 2021, over 66 million LTC were in circulation. As of May 2022, 1 LTC was equivalent to USD 68.7.
Most people who do not know of the existence of other types of cryptocurrencies usually bitcoin. This is normal given that bitcoin was the first to be invented. But over the years, developers have created other cryptocurrencies, with different characteristics altogether.
This article has explored just eight of the most common types of cryptocurrencies. It is important to note that there are hundreds if not thousands of other types of cryptocurrencies in existence.