Types of Cryptocurrencies
In order to be able to find the best cryptocurrency in 2021, types of cryptocurrencies in the world, of course, we also have to know what kinds of cryptocurrencies there are. That way, it will be easier to find related information. What type of crypto would you like to own/use for investment?
In order to be able to answer questions like the one above, you can learn more about the various types of digital currencies that can also make long-term crypto investment choices.
Also Read: How Cryptocurrency Investing Works
This type of investment makes Bitcoin one of the most popular types of digital currency. Its existence has even been able to attract the hearts of many investors. It’s no wonder that Bitcoin is now the type of choice for Indonesian crypto investment today.
Because the choice of how to invest in Bitcoin is widely traded, the growth in the value of this first crypto asset continues to increase. In fact, Bitcoin is targeted to be able to enter the global trade scale since its first appearance. The high demand is due to the way to use Bitcoin which is quite easy and practical as digital cash.
Advantages of Bitcoin
When defining the advantages & disadvantages of Bitcoin, we are able to represent the cryptocurrency in a general way. Here are some of the advantages of investing through Bitcoin, such as:
- Cryptocurrency prices real-time
- The sophisticated Bitcoin Hash Rate calculation makes public trust more secure and avoids the risk of counterfeiting
- Can reduce inflation
- Strong position through global community development
Although it comes with many advantages, Bitcoin also has some disadvantages, such as:
- It is speculative, where the value will increase if many people use it and vice versa
- Bitcoin does not recognize transaction cancellation
- The process is public, there is no guarantee of negligence/error in the delivery process
- Hardware wallets are vulnerable to viruses if not properly cared for
One example of a cryptocurrency market size that is in great demand is Litecoin. Litecoin has become known as a digital currency since its introduction in 2011. This peer-to-peer digital currency is able to generate new blocks at high speed. Not only that, but fast transactions without a strong computing system are also possible with Litecoin.
Like Bitcoin, Litecoin is considered to be one of the best cryptocurrencies that provide many advantages. So, you have more and more reasons why you choose this type of crypto.
- Here to perfect Bitcoin
- The generated block generation time is approximately 2.5 minutes and much faster than Bitcoin
- Mining/mining algorithms are getting simpler
- Comes with Segregated Witness for faster coin transactions with low fees
- The existence of the Swap Atom feature makes it easy for crypto coin owners to use Litecoin in transactions without a special platform
Disadvantages of Litecoin
Unfortunately, Litecoin also comes with some undeniable drawbacks, such as:
- There is a risk if there is no interest in the market
- Mining / easy mining can cause a buildup of Litecoin stock
- The decline in inflation can occur in a drastic way
As a derivative of Litecoin, Dogecoin was first introduced in December 2013. As the name suggests, the Shiba Inu dog became the mascot of this digital currency 1. Maybe not many people know that this type of crypto is the friendliest. Many Dogecoin communities do charity and donate activities. When compared to Bitcoin, Dogecoin has a lower value.
Advantages of Dogecoin
As one type of virtual currency, Dogecoin provides many advantages that benefit its users, such as:
- Supply together an unlimited quantity
- Higher issuance compared to Bitcoin
- The type of cryptocurrency that is quite popular
- The value is fairly stable
- Transaction fees are getting cheaper
- Big & friendly community
Disadvantages of Dogecoin
Before choosing this cryptocurrency, you can consider some of its drawbacks, including:
- Development is relatively slow
- Rare technology
4. Bitcoin Cash
Just like Bitcoin, Bitcoin Cash is starting to be widely used. Although the name is similar, these two types of crypto have differences. Bitcoin Cash block size is getting bigger against Bitcoin which is up to 8 MB while Bitcoin is only 1 MB.
This of course makes Bitcoin Cash a large and faster transaction option compared to Bitcoin.
The age of Bitcoin Cash, which is still fairly easy, is still rarely used. This is because its value remains low when compared to Bitcoin.
Advantages of Bitcoin Cash
Even though he is relatively young, Bitcoin Cash has several advantages such as:
- Has the ability to generate increasingly consistent value increases
- The speed of transactions that are classified as faster can benefit users
- High level of security & protection
- More attractive features & appearance
Disadvantages of Bitcoin Cash
Like other types of Cryptocurrencies, Bitcoin Cash has its drawbacks, such as:
- The risk of hardware damage makes it a challenge
- Haven’t reached the Critical Mass required to create a block size that is more than 1 Mb with a good and stable network
- Adoption that has not had much impact on the speculative nature of Bitcoin Cash
Feathercoin is a type of crypto that is open-source. Peter Bushnell is the first Feathercoin maker. He worked as an It Officer at Brasenose College, Oxford University in April 2013. This crypto has similarities with litecoin.