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Different Types Of Cryptocurrency

Gone are the days where you traded commodities in return for other goods & services. Those days are also gone where you used physical currency to avail services.

The digital currency or Cryptocurrency with the use of Blockchain technology has taken the new world by storm.

Note - The new software, FinoForce uses Blockchain technology for their transactions, hence making them a leading cryptocurrency MLM business software.

You know what is cryptocurrency, but do you know about different types of cryptocurrency?

We bet not! So this article has been devised with the sole purpose to enlighten you about the types of cryptocurrency and the best cryptocurrency among them.

After the first appearance of cryptocurrency in 2009, in the form of Bitcoin, the cryptocurrency has been broadly categorized into 3 types. Let’s dive in for more details -

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28 Nov, 2018

1. Transactional Purposes

The primary purpose of a cryptocurrency is to facilitate secure transactions. While the Blockchain technology is securing your transactions, you can use the transactional cryptocurrency online to purchase goods and services.

Some of the best cryptocurrency which comes under this category is Bitcoin and Litecoin.

2. Platform Dependent

Another type of cryptocurrency is platform dependent and works on the principle of Smart Contract. This means that this type of cryptocurrency has the potential to eliminate any middlemen and can even create a base for launching other cryptocurrencies.

The cryptocurrency, Ether fits perfectly in this category as it is dependent on its host platform - Ethereum. And, undoubtedly, Ethereum can be used for transactions & also to create other cryptocurrencies.

3. Task Specific

A task specific or utility cryptocurrency is built for a particular purpose.

One such type of cryptocurrency is Ripple and its paramount purpose is to facilitate low-cost international payments. Ripple allows cross-border payment transactions in a lesser time and mainly used by a wide array of global banks.

Bottom Line

Hopefully, after going through this informative article, you must have adequate knowledge about different types of cryptocurrency.

Most importantly, irrespective of their type, cryptocurrencies are only going to blossom as the time progresses.

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