The number of crypto wallets that hold over $1,000,000 worth of crypto reached a new peak at 100,000.
Of course, with so many types of cryptocurrency to choose from, it becomes increasingly difficult to know which one is the best cryptocurrency. In fact, there are hundreds of different cryptocurrencies, and each one offers something different.
That’s why, today, we will discuss the difference between cryptocurrencies with a focus on the most popular types of cryptocurrency out there.
Keep reading to learn more.
Whenever someone asks the question, “What is cryptocurrency?” most people will answer by saying Bitcoin.
Without a doubt, Bitcoin was the first cryptocurrency to come to life and continues to be the best cryptocurrency to invest in. However, one aspect that makes Bitcoin different is that it’s completely transparent, a huge difference from the other types of cryptocurrency.
Another aspect that makes it different is that it’s solely used as a currency to purchase items. So, for example, Elon Musk allowed people to buy Tesla cars with Bitcoin. Of course, since then, Elon Musk changed his mind, but he promised that you’d be able to purchase the cars with Bitcoin soon.
The difference between cryptocurrencies and ETH is that Ethereum is more of a platform than a crypto coin. ETH focuses heavily on smart contracts and other decentralized applications rather than being used to purchase things. However, the creators of Ehereum have already created a new version of ETH, called Ethereum 2.0, which will be more like Bitcoin.
USDT (Tether) stands above all the other types of cryptocurrency since it’s closely linked to a real currency, the U.S dollar.
In addition, USDT is listed as a stable coin, meaning that the crypto coin’s value is not affected by the crypto market. So, if you’ve asked yourself, “Which cryptocurrency to invest in?”, Tether is the answer.
Dogecoin needs to be included when discussing the different cryptocurrencies, despite being a “meme coin”. DOGE started as a meme but quickly has become an internet sensation, so much so that even Elon Musk has invested heavily in it. The issue with DOGE is that it has no end goal, which means investing in this coin is risky.
Unlike the other types of cryptocurrency, BNB is only available on the Binance Exchange Network. This is because it’s used to pay gas fees (transfer fees) on that network instead of purchasing other coins.
So, for example, if you want to transfer ten Bitcoin’s, instead of paying a gas fee of one Bitcoin, you’ll need to pay five BNB.
Which Types of Cryptocurrency Will You Invest In?
There are other types of cryptocurrency, but the ones previously mentioned are the ones that really stand out. Of course, before investing in any crypto coin, be sure to do your own research. Then, once you find one that you like, start investing! If you love reading articles related to cryptocurrency, be sure to check out the other posts on our blog. Without a doubt, you’ll find another one that’ll pique your interest!