Understanding cryptocurrencies

There is a large number of cryptocurrencies, which can sometimes be difficult to navigate. To help you see more clearly, we decided to explain to you the differences that exist between the various families of cryptocurrencies according to their most logical use.

Bitcoin, a real stallion

Bitcoin is the most famous cryptocurrency (Claim BTCP Fork). It is indeed Bitcoin that has established most of the principles and rules. It is also the cryptocurrency that wins the greatest success. You can buy or sell, but also use them to make purchases on the Internet. It is indeed the cryptocurrency that is accepted in the large number of places. It is expected that 21 million Bitcoin will be generated.

Infrastructure currencies

These are quite special crypto-currencies because they usually encompass an entire ecosystem with them. In this ecosystem, cryptocurrency is not a goal, but rather a tool among others. They are versatile, but generally not very accessible and rather reserved for professional or semi-professional use. However, they are thought of as real alternatives to the financial systems they aim to replace. Among these infrastructure currencies, you will find Ethereum.

Alternative currencies in Bitcoin

As far as cryptocurrencies are concerned, Bitcoin is considered a standard. So it is not very surprising to see that many currencies operate on the same system. Of course, each of them brings its share of innovations, for example shorter transaction processing times or an integrated exchange service. In addition, it is usually the simplest cryptocurrencies to use and the offer they offer is usually rather complete. Among these alternatives, you will find for example Litecoin.

Anonymous coins

This is the type of cryptocurrency that most certainly looks like cash payment. It makes it possible to pay in an entirely anonymous way and to avoid that the paying agency keeps the slightest trace of your financial activities. If this type of cryptocurrency is sometimes criticized for the possibilities it offers, such as money laundering, the purchase of illicit products or the financing of terrorism, it can also have a reassuring side. This anonymity not only guarantees some discretion, but it can also reassure against hacking and data theft. Among these anonymous coins, you will find for example Monero.

Financial instruments currencies

These are certainly the most obscure since they usually have only one purpose: to be undermined to be exchanged for Bitcoin (Claim BTCP Fork). In addition, these are currencies that generally do not offer or few prospects in the long term. These are finally currencies that disappear rather quickly before being replaced by others. Although some may be of little interest, they are not really the most interesting crypto-currencies.

What you must remember?

  • Among the different cryptocurrencies, Bitcoin is used as a reference and the others are compared to it.
  • You will find different types of cryptocurrencies, which can allow you to pay anonymously, to mine, to find a good alternative to Bitcoin or that offer their own ecosystem.