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12 Most Popular Types Of Cryptocurrency, Tips To Invest Safely

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12 Most Popular Types Of Cryptocurrency, Tips To Invest Safely

Bitcoin is well known all over the world as the undisputed king of cryptocurrencies over the past 12 years but there are literally hundreds of other options when it comes to these digital currencies.

Infoexpert24 presents you with the 12 most popular Cryptocurrencies and tips to invest safely.

Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions, it is a peer-to-peer system that can enable anyone anywhere to send and receive payments.

Instead of physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions.

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When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.

Cryptos that isn’t Bitcoin are usually considered an “also-ran” – what is called “altcoins,” or alternatives to Bitcoin.

While Bitcoin may have been the first majorcryptocurrencyto hit the market – it debuted in 2009 – many others have become highly popular, even if not quite as large as the original.

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Here are the largest cryptocurrencies by the total dollar value of the coins in existence, that is, the market capitalization, or market cap, and tips you can use to invest safely.

Below are the 12 Most Popular Types Of Cryptocurrency

1. Bitcoin (BTC)

As the harbinger of the cryptocurrency era, Bitcoin is still the coin people generally reference when they talk about digital currency.

Its mysterious creator allegedly Satoshi Nakamoto debuted the currency in 2009 and it’s been on a roller-coaster ride since then. However, it wasn’t until 2017 that the cryptocurrency broke into popular consciousness.

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2. Tether (USDT)

Tether’s price is anchored at $1 per coin. That’s because it is what’s called astablecoin. Stablecoins are tied to the value of a specific asset, in Tether’s case, the U.S. Dollar. Tether often acts as a medium when traders move from one cryptocurrency to another. Rather than move back to dollars, they use Tether. However, some people are concerned that Tether isn’t safely backed by dollars held in reserve but instead uses a short-term form of unsecured debt.

3. Binance Coin (BNB)

Binance Coin is the cryptocurrency issued by Binance, among the largest crypto exchanges in the world. While originally created as a token to pay for discounted trades, Binance Coin can now be used for payments as well as for purchasing various goods and services.

4. Ethereum (ETH)

12 Most Popular Types Of Cryptocurrency, Tips To Invest Safely

Ethereum

Ethereum: The name for the cryptocurrency platform is the second name you’re most likely to recognize in the crypto space. The system allows you to use ether (the currency) to perform a number of functions, but the smart contract aspect of Ethereum helps make it a popular currency.

5. Solana (SOL)

Launched in March 2020, Solana is a newer cryptocurrency and it touts its speed at completing transactions and the overall robustness of its “web-scale” platform. The issuance of the currency, called SOL, is capped at 480 million coins.

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6. USD Coin (USDC)

Like Tether, USD Coin is a stablecoin pegged to the dollar, meaning that its value should not fluctuate. The currency’s founders say that it’s backed by fully reserved assets or those with “equivalent fair value” and those assets are held in accounts with regulated U.S. institutions.

7. XRP (XRP)

Formerly known as Ripple and created in 2012, XRP offers a way to pay in many different real-world currencies. Ripple can be useful in cross-border transactions and uses a trust-less mechanism to facilitate payments.

8. Dogecoin (DOGE)

Originally created as a joke after the run-up in Bitcoin, Dogecoin takes its name from an internet meme featuring a Shiba Inu dog. Unlike many digital currencies limiting the number of coins in existence, Dogecoin has unlimited issuance. It can be used for payments or for sending money.

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9. Polkadot (DOT)

Launched in May 2020, Polkadot is a digital currency that connects the technology of blockchain from many different cryptocurrencies. A co-founder of Ethereum is one of Polkadot’s inventors, and some industry watchers believe Polkadot is looking to dethrone Ethereum.

10. Avalanche (AVAX)

Avalanche is a fast and low-cost smart contracts-based blockchain platform focused on building decentralized apps and facilitating the creation of custom blockchains. Its users can process transactions in the native AVAX token.

11. Cardano (ADA)

Cardano is the cryptocurrency platform behind ada, the name of the currency. Created by the co-founder of Ethereum, Cardano also uses smart contracts, enabling identity management.

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12. Terra (LUNA)

Using its currency Luna, Terra is a platform that helps backstop a range of stablecoins based on real currencies such as the dollar or euro. Terra helps stabilize the price of stablecoins through various technical means, and it also supports smart contracts.

Four tips to invest in cryptocurrency safely

According to Consumer Reports, all investments carry risk, but some experts consider cryptocurrency to be one of the riskier investment choices out there. If you are planning to invest in cryptocurrencies, these tips can help you make educated choices.

1 Research exchanges:

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Before you invest, learn about cryptocurrency exchanges. It’s estimated that there are over 500 exchanges to choose from. Do your research, read reviews, and talk with more experienced investors before moving forward.

2 Know how to store your digital currency:

If you buy cryptocurrency, you have to store it. You can keep it on an exchange or in a digital wallet. While there are different kinds of wallets, each has its benefits, technical requirements, and security. As with exchanges, you should investigate your storage choices before investing.

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3 Diversify your investments:

Diversification is key to any good investment strategy, and this holds true when you are investing in cryptocurrency. Don’t put all your money in Bitcoin, for example, just because that’s the name you know. There are thousands of options, and it’s better to spread your investment across several currencies.

Prepare for volatility:

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The cryptocurrency market is highly volatile, so be prepared for ups and downs. You will see dramatic swings in prices. If your investment portfolio or mental wellbeing can’t handle that, cryptocurrency might not be a wise choice for you.

Cryptocurrency is all the rage right now, but remember, it is still in its relative infancy and is considered highly speculative. Investing in something new comes with challenges, so be prepared. If you plan to participate, do your research, and invest conservatively to start.

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