2022 is turning out to be a notably challenging year for investors. The stock market is down, and the cryptocurrency market famously crashed in the Spring. Some unlucky TerraUSD investors lost their life savings on dramatically falling prices.
So are recent news stories a warning to stay clear of crypto? The answer is no. The market still offers plenty of opportunities for investors, but it is highly volatile.
These news stories mean that you’ll need to brush up on your crypto knowledge to navigate the ups and downs and help protect your investments. So start here with this guide to today’s main types of crypto.
Bitcoin is a transactional cryptocurrency and the oldest of all crypto types. The first bitcoin emerged way back in 2009. However, most people only became familiar with the name almost a decade later.
Even in today’s financial climate, Bitcoin is one of the most popular types of crypto. The most successful Bitcoin traders have made millions of dollars from investing in the currency before the big spike in 2020.
Ethereum is another well-known, open-source crypto that helps people save and move money securely and privately. It started a little later than Bitcoin in 2015, but that’s still old and well-established in crypto terms.
As Ethereum as a currency has flourished, some people have started to use it as a banking system in place of the more traditional banking setup for their money.
Unlike Bitcoin, Ethereum allows you to use the system for multiple crypto assets, including bitcoin.
You may not have heard of the Marscoin crypto, but this is a crypto technology with a fascinating story. The name of this coin isn’t a random choice but a reference to humans developing a colony on the planet Mars!
The Marscoin supports the exploration of the red planet, and they encourage people to donate to those efforts. You can read about it here.
Dogecoin started as a joke in 2013. It was made famous by the entrepreneur Elon Musk in 2021 when he mentioned that he owned the cryptocurrency. Since then, interest in the coin has skyrocketed.
This coin uses a similar blockchain model to Bitcoin. However, Bitcoin has a finite number of coins in existence. Dogecoin, on the other hand, has infinite numbers.
Like other cryptocurrencies, Dogecoin recently experienced a fall in value and currently trades under a dollar per coin.
Cardano positions itself as a technical leader in blockchain innovations. Its big selling point is that the architecture is peer-reviewed. That offers a sense of trust and reliability among potential investors.
Cardano is also a good option for those investors who worry about the environmental impact of cryptocurrencies. Bitcoin mining causes high carbon emissions and contributes to global warming.
The technology for Cardano isn’t as intensive, so you can invest your money without worrying about the long-term environmental impacts of your decision.
The Different Types of Crypto
There are so many different types of crypto emerging each month. So it is financially wise to stay clued up on the coins you invest in and the technology that supports your investments if you want to protect your money.
Continue your crypto research now by heading over to the latest articles in our finance section.