The 6 Most Common Types of Cryptocurrency And What They're Used For

The 6 Most Common Types of Cryptocurrency And What They’re Used For

by Bryn Fest

Investment decisions are tough, especially when it comes to cryptocurrencies, staying on the right track of investment requires proper market research. Additional information click at this link

The time of 2009 left people with only one option, bitcoin, but today in 2022, there is more than 10,000 cryptocurrencies circulating in the market. That’s giving you the leverage to choose the best one. In this detailed, informative article, we are going to highlight the six popular cryptocurrencies that never fail to attract the attention of enthusiast crypto investors.

1. Bitcoin:

The first cryptocurrency on our list is bitcoin. It is every investor’s favourite. It would not be wrong to call it to be the apple of the eyes of crypto investors. Being a pioneering cryptocurrency, bitcoin has several advantages over the others. It is a premium cryptocurrency.

However, you should know that a major portion of bitcoin circulating in the market is held by only a few investors. But if you still plan to invest in it, you can start doing so by registering yourself on a crypto trading platform. Most of the crypto trading exchanges offer cryptocurrencies of your choice.

2. Ethereum

After 2009, when people were getting sceptical about bitcoin’s sustainability, in the long run, a few years later, another cryptocurrency was introduced into the market. It was its area. One of the defining features of this cryptocurrency is that it is an open-source platform as well. It means that the developers are actively using this platform to develop applications that can be used by enterprises as well as the common people.

The defining feature of this decentralized application is that they operate on Ethereum Blockchain. It means that all the information is encrypted and safe. The interaction takes place directly between the two users making it a far more efficient and productive applications.

Another use of Ethereum is that it aids the development of smart contracts, which is again to be the future of contractual agreements. Digital contracts have been in usage for a long time, but with the introduction of smart call contracts based on Blockchain, they will become more authentic and credible.

3. Tether –

The next trip to currency in our list is the third. It is a subcategory of cryptocurrency, which is a stablecoin. Its value is attached or collateralized with US Dollar. The sole purpose of the introduction of stablecoins is to make investment safe and secure. Since its value doesn’t get impacted so dramatically as that of cryptocurrencies, it is a much safer option.

4. Binance Coin

This was primarily the native cryptocurrency of Binance Exchange, but now you can find this cryptocurrency on other crypto exchanges as well. It is a utility cryptocurrency that is used for making payments.

This coin was initially an ERC-20 which was powered by Ethereum Blockchain. It works as a proof-of-stake consensus mechanism, thus making it a better option.

5. XRP

It is the cryptocurrency of the XRP ledger. It works on XRP Ledger Consensus Protocol. The other forms of cryptocurrencies, such as ex-RP doesn’t require the functioning of work or proof of stake mechanism. Rather it needs the signature of the client to send the transaction to other ledgers. This server compares the transaction and concludes that the transaction can be entered into the ledger.

6. Dogecoin

It was initially known as a meme coin, but its value skyrocketed in 2021, but Elon musk announced his interest in this cryptocurrency. He mentioned that dodge coin is better than bitcoin. This statement not only led to the rise of the value of the dodge coin but also impacted the value of bitcoin negatively.


So, these were some of the most popular options that are booming in the crypto investment market. Although the number of cryptocurrencies is not limited to just B6, you can also explore other cryptocurrencies like polka dot, lit coins, Ripple and others. The objective is to invest in a cryptocurrency that can guarantee you great returns in the future. Hence it is advisable that one must always ensure an understanding of the crypto market and how crypto currencies operate.

Bringing one cell phone’s crypto exchange platforms is the first step to being a part of the system. You can explore for this.

Related Posts