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So, Exactly What Is Cryptocurrency?
I’ll give you the most straightforward (but still correct) explanation.
Cryptocurrency is basically the virtual or digital equivalent of the physical money we interact with daily.
But just to add more to that, while cash relies on banks or financial organizations to record transactions and foster trust and security in the overall system, crypto uses a technology known as blockchain to act as both a public ledger or record of transactions and a security system.
I will be talking some more about blockchain technology in a short while.
How Many Cryptocurrencies Are There?
You have probably heard about Bitcoin and Ether, the two largest cryptocurrencies, but there are actually over 18,000 cryptocurrencies as of posting this article.
Other examples of cryptocurrencies include Dogecoin, Shiba Inu, Cardano, Baby Doge, Solana, Litecoin, and Polkadot.
Let’s Now Move on to the Different Types of Cryptocurrencies
So, generally speaking, there are two types of cryptocurrencies, namely coins and tokens.
On the one hand, coins refer to those cryptocurrencies with their own blockchain, for example, Bitcoin, the native coin for the Bitcoin blockchain network, Ether, the native coin for the Ethereum blockchain, and BNB…