So You Want to Invest in Cryptocurrency? Here Are the 4 Types You Need to Know

 

What Is Cryptocurrency?

So you've been hearing about all this cryptocurrency stuff and you're thinking about investing. Well, before you do, it's important to understand what it is. Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions and to control the creation of new units.

It's sort of like regular currency, but it's encrypted so that it can't be counterfeited. Bitcoin is the most well-known example of a cryptocurrency, but there are lots of others. Ethereum, Litecoin, and Ripple are all examples of different types of cryptocurrencies.

Bitcoin

So you want to invest in cryptocurrency? Well, Bitcoin is the original and most well-known cryptocurrency. It was created in 2009 by an anonymous person or group of people under the pseudonym Satoshi Nakamoto.

Bitcoin is digital gold. It's a store of value, and like gold, its value fluctuates. Over the years, its value has skyrocketed, and there's no telling where it will go next.

But Bitcoin isn't without its flaws. For one, it's slow and expensive to transact in. And it's not very user-friendly.

Ethereum

You may have heard of Ethereum, which is currently the second largest cryptocurrency after Bitcoin. Ethereum is different than Bitcoin in that it allows for the development of decentralized applications on its blockchain.

This has made Ethereum incredibly popular with developers, and has led to its price increasing exponentially in recent months. If you're thinking of investing in cryptocurrency, Ethereum is definitely a coin worth considering.

Litecoin

You're probably familiar with Bitcoin, but did you know that there are lots of other cryptocurrencies out there? In fact, there are over 1,000 different cryptocurrencies in existence.

Litecoin is one of those cryptocurrencies, and it was created by Charlie Lee in 2011. Litecoin is very similar to Bitcoin, but it has a few key differences. For example, Litecoin can process transactions faster than Bitcoin.

If you're thinking about investing in cryptocurrency, Litecoin is a good option to consider. It's a well-established currency with a solid track record, and it has the potential to appreciate in value over time.

Bitcoin Cash

Let's start with Bitcoin Cash. You've probably heard of it, as it's one of the more popular cryptocurrencies out there. It was created in August 2017 as a fork of Bitcoin, and its main purpose is to act as a peer-to-peer electronic cash system.

One of the things that makes Bitcoin Cash so great is that it has a very low transaction fee, which is why it's been gaining in popularity lately. And because there's a finite number of Bitcoin Cash available, its value is likely to continue to rise over time.