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Ethereum, litecoin, tether, and XRP are just a few of many crypto tokens and coins (often referred to as “altcoins”) changing hands every day, and one cryptocurrency isn’t always like another.īefore diving in to different types of cryptocurrency, let’s start with a basic question: What is cryptocurrency? Cryptocurrencies are computer-based money that can be exchanged for goods and services.
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But the global crypto show features a cast of thousands-more than 4,400 cryptocurrencies were trading in early 2021, according to CoinMarketCap. Although bitcoin grabs many headlines in the financial media, other cryptocurrencies are also worth followingīitcoin tends to hog the spotlight on the cryptocurrency stage.Bitcoin leads all cryptocurrencies based on market capitalization and is among the most traded.Cryptocurrencies grew rapidly in recent years, with more than 4,400 crypto coins and tokens trading in 2021.