Different Types of Cryptocurrency You Should Know About

A whopping 23% of people in the U.S. owned and invested in different types of cryptocurrency in 2021. That’s a 16% increase from the previous year’s 41.5 million.

Mastercard and Visa incorporating cryptocurrencies into their platforms may help explain that growth. Visa alone said its users with a crypto-linked account made $2.5 billion in payments in the first quarter of 2022.

Those figures show that crypto is now becoming more mainstream. Thus, now may be the best time to buy, invest in, use, or sell some yourself.

If you’re unsure of the best types of crypto to own, don’t worry. Keep reading, and we’ll tell you all about them below.

Bitcoin (BTC)

Bitcoin is the world’s first-ever successful decentralized cryptocurrency, introduced in 2009. It’s also the leading global crypto in terms of market cap. You can buy, mine, and invest in this digital currency and use it to pay merchants that accept it.

Bitcoin’s worth undergoes significant fluctuations, as shown by this Bitcoin CAD price chart. After all, factors like the number of investors, supply, and demand affect it, as with any other asset. So if you’d like to own this crypto, buy it when its price is low and sell it or use it as payment when its value is high.

Ether (ETH)

Ether, or ETH, is the cryptocurrency used by Ethereum, a decentralized blockchain platform. It’s much like Bitcoin, so you can also use it to purchase goods and services. However, because it came after BTC, it’s still only the second-largest crypto by market.

Still, investing in Ether is wise, as it can help diversify your portfolio. Besides, BTC differs from ETH in that the former’s primary goal is to be an exchange medium and store of value.

Ethereum wants those for Ether but also aims to be a leader in global decentralization. That’s why it uses ETH as its primary currency for the apps built and running on the Ethereum network. Therefore, it has more possible uses than BTC, giving it more potential to grow.

Tether (USDT)

Tether, a stablecoin, is the third-largest global cryptocurrency, falling behind BTC and ETH.

A stablecoin is a cryptocurrency with a value pegged to another real-world asset. In the case of Tether, it’s the United States dollar. That’s why its acronym is USDT; USD stands for the U.S. dollar, while T stands for Tether.

Although Tether is only the third-largest crypto, it’s the most popular stablecoin. Therefore, investing in this currency is wise, as it allows you to own an asset with a value equivalent to the USD. Plus, as a stablecoin, USDT provides liquidity in a market as volatile as crypto.

Invest in These Different Types of Cryptocurrency

And there you have it, the different types of cryptocurrency you should know of and might want to own. Now you know that these include Bitcoin, Ether, and Tether, the world’s leading forms of crypto. So if you’re going to delve into the world of digital currencies, it’s best to start with these three.

Are you looking for other guides that could help you navigate the world of crypto? Then feel to browse more of our latest news posts!