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Cryptocurrency is consistently winning ground. You can use cryptocurrency as an investment or as a means of payment. It is a digital alternative to cash or credit cards for making daily payments. In the past, the cryptocurrency business looked scary. But many are now gaining trust and investing in the different types of cryptocurrencies available.
What is blockchain cryptocurrency?
The blockchain cryptocurrency is a digital asset that functions as a medium of exchange. It differs from common traditional currencies as it works on digital channels with strong encryption to protect all online financial transactions. The encryption layers also control the creation of additional drives and also verify the transfer of resources. There are various types of blockchain cryptocurrencies such as:
1. Bitcoin
Bitcoin is one of the commonly used currencies. It is perceived as an original cryptocurrency and was created in 2009. Bitcoin uses blockchain technology and allows users to transact peer-to-peer. Transactions are secured via an algorithm within the blockchain. You can view the transactions, but only the owner of the bitcoin can decrypt it using a private key.
Bitcoins are different from banking transactions in that there is no central regulator. Users manage and control transactions, which allows for anonymous exchanges. You can use Bitcoin to pay bills using Bitcoin debit cards. You can also use Bitcoin in Bitcoin licensed casinos to pay for poker and slot games.
2. Litecoin
Litecoin is an alternative to Bitcoin, launched in 2011. Like other cryptocurrencies, it is an open source and global payment network. Is there a difference between Litecoin and bitcoin? Yes, some are listed below;
Litecoin offers faster transaction times than bitcoin
The coin limit for Litecoin is 84 million, while the limit for Bitcoin is 21 million.
They both use different algorithms; Litecoin is a scrypt, while Bitcoin is SHA-256.
3. Bitcoin Cash
Bitcoin cash is a type of digital currency. It was designed to enhance some of Bitcoin’s features and has had many benefits. The cryptocurrency was launched in 2017 and has improved block sizes, allowing for faster transactions. The launch of Bitcoin Cash was supported by some key Bitcoin investors, such as Roger ver, who was for the idea that Bitcoin’s block size limit inhibits its ability to scale or accumulate value.
4. Stellar Lumen
Stellar Lumen operates as an intermediate currency and facilitates currency exchange. It is borderless and allows exchanges between different currencies from one owner to another. With Stellar, you can create, send and exchange different digital forms of money, pesos, dollars, Bitcoins and many more. It allows the world’s financial systems to operate on a single network.
5. Ethereum
Ethereum is an open source platform and a type of blockchain technology launched in 2015. Ethereum is accessible around the world and you can use it to write code that controls digital values and works as planned.
Helps in tracking ownership of digital currency transactions. It also runs programming code on decentralized applications allowing application developers to use the Ethereum network to pay for commissions and transaction services.
Conclusion
Cryptocurrencies are now used as a payment method, and you can use them to pay bills in places that allow such transitions. To trade cryptocurrency, choose an exchange wisely. Furthermore, cryptocurrencies are not regulated by a centralized body.
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