You may have only heard about Bitcoin, but in reality there are many different types of cryptocurrency. There are several digital assets that make up the rest of the cryptocurrency market.
Let’s take a look at five different cryptocurrencies worth having on your radar.
Types of cryptocurrency
Before diving in, a few things are worth explaining. Cryptocurrency can be quite a complicated subject if you are not a computer programmer.
A key thing to remember is that most cryptocurrencies are designed to be used as digital tokens on specific networks.
While there are competitive types of cryptocurrency, their price is only one small aspect. The companies, organizations, and foundations behind these technologies are primarily trying to create useful digital networks and markets, not just coins for Internet trading.
Here are five important cryptocurrencies you should know about.
1. Ethereum (ETH)
Ether (ETH) is the cryptocurrency used in the Ethereum network. It is the second-largest cryptocurrency on the market and Bitcoin’s biggest competitor. The platform and programming language is called Ethereum.
Ethereum is the creator of Vitalik Buterin’s programmer, among others, and it went live in 2015. It uses blockchain and is open source but is more sophisticated than Bitcoin in its design.
The idea is for Ethereum to be used for smart contracts and distributed applications (DApps). This may sound complicated but it basically means creating ways for different parties to interact and do business in an efficient and safe way.
Many available cryptocurrencies actually run on the Ethereum network. The price of Ether is up over 90% since the start of the year, and currently sits at around $ 1,400. This is a similar price to the peaks it reached back in 2018.
2. Cardano (ADA)
Launched in 2015 by Ethereum co-founder Charles Hoskinson, Cardano and its symbolic ADA are also for use with smart contracts and DApps. You can think of it as a competitor to Ethereum. Indeed, ADA is a similar form of cryptocurrency to ETH.
It is interesting because it is the only blockchain that is peer reviewed and developed by academic experts in the field. The Cardano team is used to changing the world, not just making money from the ADA ticket.
They aim to create a faster and more efficient network than Ethereum. Cardano ADA cryptocurrency has a very high supply and current price of $ 0.37 a penny, far from its highest value of $ 1.18.
3. Litecoin (LTC)
Designed to be an improvement on Bitcoin, Litecoin aims to become a global payment network. Launched in 2011 by Charlie Lee, this is a payment-focused form of cryptocurrency. If Bitcoin is digital gold, Litecoin hopes to become a digital currency.
Litecoin’s programming structure makes it faster and easier to acquire than Bitcoin. The idea is to use this altcoin for smaller transactions and has a coin limit almost four times higher than Bitcoin.
Litecoin’s price has seen a positive move of over 28% this year, up to around $ 150 a penny, but still off its record-breaking valuation of just over $ 350.
4. Stellar Lumens (XLM)
This is an open network focused on moving and storing money. Stellar uses a cryptocurrency token called Lumens (XLM). This is another financial form of cryptocurrency. However, rather than being aimed at individuals, Stellar aims to use their XLM cryptocurrency to make it easier and cheaper for organizations to be able to trade things as assets across borders.
The network aims to work alongside and not replace fiat currency (regular currency). Their ambitious goal is to make global markets more fluid, open and less congested than they are today.
The price of the XLM ticket has shot up over 130% this year to $ 0.31. Like many others, it is still off its top price of $ 0.87.
5. IOTA (IOTA)
Launched in 2016, the IOTA Foundation’s main goal is to power the Internet of Things (IoT) using their IOTA cryptocurrency. This means machine-to-machine transactions only. Instead of blockchain, IOTA uses a technology called Tangle. Most blockchains have problems with speed and scalability, so this is a different approach.
If there are too many transactions, blockchain can get clogged. IOTA’s Tangle design allows it to become faster with more users. And because there are no miners, there are no transaction fees. This makes it potentially very useful for networks with many small transactions.
The IOTA Foundation has already partnered with huge car manufacturers like Jaguar Land Rover and even cities like Taipei in Taiwan.
The price of IOTA has seen a very positive increase of over 60% this year to $ 0.48. But this is still off its $ 5.25 maximum price, so there may be plenty of room for the price to expand again.
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