There are majorly three types of cryptocurrency present in the crypto industry, The first cryptocurrency that was launched in 2009 by Satoshi Nakamoto, is bitcoin. After two years in 2011 bitcoin was started popular in the market, at that time two more cryptocurrencies were launched one is Litecoin and another one is Namecoin. The lite coin was launched by a computer scientist and his name is “Charlie Lee”, and Name coin was launched by Vincent Durham, So basically From 2011, altcoin development started.
In 2013 first joke coin or Memecoin was released by Billy Markus (Shibetoshi Nakamoto), Michi Lumin, and Ross Nicoll which is Dogecoin (Pronunciation DOHJ-Koen). Now in 2021, There are many Memecoins that are giving a huge profit and listed on the Biggest Crypto Exchanges like Shiba Inu (SHIB), Dogecoin, Dogelon MarsYooSHI, Kishuinu, etc.
Know all about Bitcoin
As we know In 2008, the global financial crisis happened, and all the banking systems are failed at that time a man whose name is anonymous but we know that person as “Satoshi Nakamoto”. He has released the white paper regarding the decentralized banking system and bitcoin working structure in 2009 and the first Bitcoin come into existence with Satoshi Nakamoto mined the genesis block of bitcoin and got the 50BTC as a reward, In 2011 Bitcoin touched the 1 dollar mark.
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Know all about Altcoin
As we know source code of Bitcoin is open and everyone can download and modify this code easily with programming languages, In 2011 “Charlie Lee” is modified the Bitcoin source code and developed the new altcoin whose name is “Litecoin” and one more altcoin was launched in 2011 by “Vincent Durham” which is “Namecoin”.
Types of Altcoins
Altcoins are divided into four types which are given below
- Minable altcoins
- Non-Minable altcoins (Staking based)
- DPoS (Delegated proof of stake)
- Stable altcoins
Here is the graphical representation of different altcoins launch years and their types
Mining based Altcoins
This type of cryptocurrency used the mining process to verify all the transactions and add more coins to the supply chain. Miners use computer hardware to solve mathematical equations and obtained output is added to the ledge or block then miners get the crypto coin as a reward. Bitcoin was the first crypto that works on proof of work (mining base) but this process has the one disadvantage that it uses high electricity to operate.
Non-Minable Altcoins (Staking based Altcoins)
This type of altcoin used the staking process to verify the transaction and more coins were added to the supply. Holders are stake their coins and they are pledging their coins to use for transaction processing, cryptocurrency blockchain is chosen for participants to verify the block for the transaction and participants get the rewards. Peer coin is The first staking-based altcoin but this coin is not popular as bitcoin the staking process become more popular because it’s very energy-efficient than mining.
DPoS (Delegated proof of Stake)
This type of cryptocurrency used the DPoS process to verify the transaction, DPoS is more secure than the PoS. Daniel Larimer is invented Delegated proof of stake and the first cryptocurrency which is implemented DPoS on Bitshares. These are some Altcoins that are working on DPoS
- EOS
- NEO
- Waykichain
- Steen
- Bitshare
Stable Altcoin
This type of crypto coin is developed to follow another asset, one of the biggest stable cryptocurrency is USDT which follow the US dollar, if the price fluctuates then the issuer is taking a step to correct it. Normally They are not chosen for the cryptocurrency investment because of stability, it is used to buy other cryptocurrencies or send money to other people.
Know all about Memecoin
The cryptocurrency that is created on a meme or as a joke coin and all the Memecoin coins are based on the Proof of Work algorithm. There are many Memecoins but some of their very popular which are given below
- Dogecoin
- Shiba Inu
- Yooshi
- Kishu Inu
- Dogelon mars
- Safe moon
These meme coins are simply traded by people who are want to become part of that joke coin but sometimes these coins are treated as investments and give a huge profit. As we know that Memecoin has a high volatile rate, that’s why Meme coins are riskier to invest and trade compare to good Altcoins.
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FAQs about Cryptocurrency types
Is memecoin safe to invest in?
Now in 2022, Memecoins are at the peak if we talk about profit, but there are only some meme coins which are Dogecoin, Shiba Inu, Yooshi, Dogelon mars, baby Doge, etc.
When the first memecoin was launched?
In 2013 first meme coin was launched which is Dogecoin.
When the first Altcoin was launched?
In 2011 the first Altcoin has launched that id Litecoin.
Which is the best proof of stake coin?
There are many PoS coins but these are some most popular and good crypto projects in 2021 which are Cardano ADA, ripple XRP, XLM.