Jay is our crypto nerd and enthusiast. He had a deep understanding of Blockchain technology and its mechanisms. On his free time, you'll find him attending all sorts of tech conferences in the US and Worldwide as well as playing chess in parks
Cryptocurrency is complicated cryptography which enables a digital token to be generated, stored and transacted anonymously. These cryptocurrencies are generally developed by means of mining. One of the most common types of coins used in cryptocurrency is Bitcoin, but in this article, we are going to be looking at some other important types of cryptocurrencies which is not Bitcoin.
EOS is one of the newest digital currencies which was created by Dan Larimer. He was the person who founded digital currency exchange ‘Bitshares’ as well as ‘steemit.’ EOS is designed after ethereum as it allows developers to build decentralized applications.
Cardano was launched in September of 2017; it offers the benefits ethereum offers. It also gives a platform for smart contractors to help use ethereum much better. It aims at solving some of the most prominent problems in the crypto world, which are interoperability and scalability.
NEO was originally called AntShares by the creator Da Hongfei. It is the largest cryptocurrency in the world which originated from China and due to its smart contracts, it is also called ‘Chinese ethereum.’ Due to its relationship with the Chinese government, NEO has experience benefits which were once considered to be harsh.
Bitcoin Cash is one of the most successful coins in history. In the crypto world, due to the results of debates and arguments between the developers and miners, this digital currency split and as the result of this split bitcoin cash can into existence.
A secure, private and untraceable currency is monero and with its launch in 2014, it spiked the interest of the cryptography community. This cryptocurrency is donation based and was launched with a strong focus on decentralization and scalability. Also, it provides complete privacy with its special signatures called ring signatures.
Also known as Darkcoin, offers anonymity as it offers on a decentralized master code which makes the transactions untraceable. This cryptocurrency was developed by Evan Duffield and can be easily mined with CPU or GPU.
A decentralized and open source cryptocurrency which was launched in 2016 offers privacy and selective transparency. Zcash provides protection by recording the transaction and then publishing it in blockchain while keeping the sender and receiver details private.
A decentralized software platform which allows distributed applications to be built and run without downtime. Ethereum runs on platform-specific cryptography token called ether.
Litecoin was launched in 2011 with bitcoin and has been referred to as ‘the silver to bitcoins gold.’ The creator of the litecoin Charlie Lee made it an open source payment network where they use scrypt as the proof work which can be decoded with the help of CPU.
Cryptocurrencies are virtual currencies which operate independently of government or banks but can still be exchanged just like any other physical currency. With the launch of bitcoin, the first decentralized cryptocurrency can into existence. Although, bitcoin remains on the top, there are many more currencies which could be challenging the leader such as bitcoin cash, bitcoin gold, ether, ripple, stellar and NEO, as they are slowly rising to demand, expanding applications and advancing their technologies. These are very important, especially if you are a cryptocurrency trader. These cryptocurrencies give vital clues on how to supply and demand for each coin, which might change over time. These traders, in turn, influence market prices and learn how to trade cryptocurrencies.
Supply: Circulating supply and upper limit
The supply of crypto coins plays an important role in setting market prices, which means the scarce the coins, the more value they have. Bitcoin has an upper limit of 21 million coins, while ripple has 100 million. These coins will deflate as they are mined and released. But with coins like ether, that has no fixed limit; the potential depends on how much it is burnt or lost.
Cryptocurrency mining and release rates
Mining is a process where blocks of transactions are verified and these supply of coins changes over time with them being mined and released. Bitcoin is generally mined at 12.5 new coins for every verified block with the reward cuts to half every four years. Ripple coins can be pre-mined and are currently released at a rate of one billion per month.
Demand : Reputation
There are many new competitors in the market and the value of bitcoin has increased over the last few years and still remains one of the best biggest cryptocurrency in the market. This suggests that cryptocurrency can remain an important factor in valuations but with the negative press can lead to a negative impact on prices
Bitcoin is a standalone, but ripple has wider networks with expanded applications. If popularity increases the mainstream demand for cryptocurrencies will also increase.
Transaction speed and scalability
As the speed of people adopting cryptocurrency increases the transaction speed also increases with a high volume of transactions. The scalability can also influence blockchains size and security; these factors will influence the profitability of mining and the speed of the associated network and willingness to buy the coins as well as use it. Traders can pay attention to software networks and updates to see how scalability evolves.
The bottom line
Although bitcoin is leading the way to other cryptocurrencies, virtual currencies such as ethereum and ripple are rising among users and becoming popular and might also show more advanced features that bitcoin. But still, traders will look for the coins which can bring in a lot of users due to which traders have to keep a keen on different types of cryptocurrency to ensure their success.