What are the types of cryptocurrencies

There are different types of cryptocurrencies on the market. This allows both beginners and users with a large budget to choose the best option on the Huobi Global exchange (Huobi global review).

What is bitcoin?

This is a global peer-to-peer electronic payment system. It enables several parties to conclude transactions without the mediation of a bank or any other financial institution. This is a good alternative to gold or fiat currencies offered on the digital market. Bitcoins are considered the most popular of all cryptocurrencies.

What is an altcoin?

The Okx exchange (Okx review) regularly trades altcoins, as they are considered the second most demanded in the world of digital currency. This concept refers to all other cryptocurrencies that are created after bitcoin. Based on last year's statistics, the share of altcoins in the international market was approximately 33%.
Popular types:
• Litecoin;
• Ethereum;
• IOTA.
Like bitcoin, any altcoin can operate independently on its network. For this, a special distributed ledger technology is usually used. It's called DLT. A popular example is blockchain. Each one is unique because there are different security variations in the protocol code.

What is a stablecoin?

We are talking about altcoins, the course of which is necessarily provided with something. They use gold, euro, dollar or other crypto to drastically reduce price volatility in this way.
Pros of stablecoins:
• functioning on blockchain technology;
• low volatility;
• security with commodity values;
• fiat currency.
Of the minuses, experts usually single out dependence on state financial policy and excessive centralization.

What is a token?

A token is a unit of account, supplemented by the function of a substitute for financial assets. We are talking about raw materials, gold, indices, securities. This is a great alternative for the digital world. Unlike bitcoin, tokens cannot work independently, so they are placed at the top of the created cryptonet and smart contracts are used for management.

The above lists all types of cryptocurrencies that have managed to gain a foothold in the international digital financial market, attract a lot of attention and earn a positive reputation. By investing in these coins, you can get a good income with a 99% probability. The main purpose of the entire crypt is to speed up and facilitate the process of transactions. That is why any of these types is built on the basis of the blockchain and works according to a single specificity.