Have you heard of Bitcoin, but are not quite sure what it is?
You’re not alone.
Cryptocurrency came on the scene in 2009 and has enjoyed enormous growth over the past decade-plus but is still a bit of a mystery.
At the end of last year, approximately 1,000 new cryptocurrencies jumped into the market every month!
But what exactly is it?
How do you become a crypto investor?
What do we need to know about buying crypto?
Are you interested in investing in crypto?
Keep reading to learn about the different types of crypto in this crypto for beginners guide.
What Is Cryptocurrency?
Cryptocurrency is digital or electronic money. You hear terms like bitcoin (the first cryptocurrency) and crypto coins, but there are no physical coins or money. Digital money uses cryptography to process and secure transactions that take place between senders and recipients.
The thing that makes it different is that anyone with the ability to use blockchain technology can create a coin. The coin’s worth comes from its utility and perceived value in the market. If a new coin isn’t widely accepted, it ends up being useless.
Is crypto the money of the future? Some crypto enthusiasts believe so.
Types of Crypto
With so many types of crypto in the market today, it’s impossible to learn about all of them. They have different functions and crypto investment offers a number of alternative and unique opportunities.
Let’s take a look at the most common digital currencies you’ll find on today’s exchanges.
Bitcoin
Bitcoin was founded in 2009 and was the first major cryptocurrency. It was the trailblazer for the crypto industry around the world. It remains the most commonly traded cryptocurrency. It leads the way when it comes to the trends impacting value and investment.
USD Coin (USDC)
USD Coin (USDC) is a cryptocurrency that’s backed by US dollar assets. It’s what’s called a stablecoin because its value is supposed to stay stable.
One USDC currency, the decentralized version of the U.S. dollar, equals one U.S. dollar. USDC doesn’t have the volatility that other cryptocurrencies experience.
Ether by Ethereum
Ether is the main token for the Ethereum network. The network hosts a decentralized computer system and a payment system. People use Ether as a cryptocurrency for trading and to pay transaction fees and services on the Ethereum network.
Ethereum uses blockchain and replaces centralized computing systems, think Google, Apple, and Amazon. These companies regulate, censor, and control user data on their applications. A network like Ethereum gives power back to the users and removes the security risk of a centralized system.
Learn more about one type of crypto called Shiba Inu coin price CAD and the crypto market by following the link.
Diversify Your Portfolio
You may be familiar with the most popular and well-known types of crypto, but there are several thousand out there. If you’re looking for a way to diversify your portfolio, cryptocurrency might be the way to go. If you have the money to spare, read up on it and go for it.
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