What are the different types of tokens in Bitcoin?

How many types of cryptocurrencies are there?

Since Satoshi Nakamoto created the first bitcoin in 2009, the world of cryptocurrencies has evolved and changed very quickly. Today, there are already many different types of this currency that have their own characteristics and uses. Many times, the world of cryptocurrencies sounds too far away and we feel that we still have to do a lot of research to know if we are facing an opportunity or a threat . Knowing their types and the uses that are given to them in the market can help us to understand much better what they are, what they are for and what their role may be in a future that is increasingly immersed in the Internet.

The importance that this technology has acquired in our daily lives has reached the labor market, and the need to know how to deal with this new paradigm forces professionals to keep up with the changes and receive training adapted to this moment. With the Master in Blockchain and its Business Applications from Three Points you will be able to acquire all the necessary knowledge to lead and manage projects around this technology that allows the creation of cryptocurrencies. Keep reading this Three Points post and find out how many types of cryptocurrencies there are .

Popular types of cryptocurrencies

Although bitcoin is the most popular of the cryptocurrencies, the truth is that the number of digital currencies that exist is very large, so much so that the most expert sources speak of more than 5,000 coins of this type. According to the CoinMarketCap portal, there are 9,953 different types of cryptocurrencies in circulation .

We are going to dwell on some of them and find out what makes them different from the rest and what their main characteristics are.

Bitcoin (BTC)

Bitcoins are the most popular cryptocurrencies . They were created in 2009 with Blockchain Development Service technology with the intention of creating currencies that could be used as a payment method that did not have to be supervised by a government. It is considered the original ‘crypto’ and its intention is to become an alternative to the traditional system. Thanks to bitcoin, many business sectors are growing .

Currently, bitcoin is mostly used as a form of investment. It is very volatile and has an extremely high value to use physically. In fact, they are not usually bought whole, but are bought in fractions . Also, to avoid their inflation, the creators of these cryptocurrencies put a maximum number of holdings on them.

In turn, there are also different types of bitcoins, such as bitcoin cash (BCH) , which belongs to a subsidiary that was created by fork in August 2017 and allows faster transactions.

Ether (ETH)

Ether is one of the coins with the highest market capitalization . It belongs to Ethereum, a blockchain platform for “smart contracts”. The annual emissions of this currency are limited to 18 million and its use is to pay in Ethereum itself. Its biggest difference from bitcoin is that it is not considered an investment cryptocurrency .

Dogecoin (DOGE)

In this case, we are talking about a cryptocurrency that was generated from the DOGE dog meme , humorously. It was created from the modification of a Bitcoin protocol and, despite seeming like a joke, almost 30 million DOGE are currently circulating on the market. It is one of the cheapest coins , currently costing only $0.3.

BinanceCoin (BNB)

Originated by Binance , this type of cryptocurrency is today a very attractive method, since it allows the reduction of the cost of transaction fees that have tokens issued on BNB in ​​the account. Another advantage is that you can get more of these tokens with recommendations to other people.

Ripple (XRP)

Another type of virtual currency is Ripple , one of the largest known today. It is traded on many crypto exchanges and works as a payment network for banks trying to make international transactions more efficient and profitable.

Lumens (XLM)

This virtual currency is located within the Stellar network , a space where transactions can be processed in different currencies. It works very well as an anti- spam filter , since the transactions carried out require the payment of a fee in this currency.

Litecoin (LTC)

In the words of its creator, Litecoin was created to be the silver of bitcoin , considering the latter gold. Their offer is four times larger than that of your typical coinbase. Its use provides high-speed transactions .