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jennyl Feb 14, 2023, 7:31 am EST

What Are Cryptoassets? Understanding the Types and the Market

Cryptoassets or cryptocurrencies are digital assets designed to function as mediums of exchange. Bitcoin, the first and most popular cryptocurrency, was invented in 2009 by an unknown person or group using the name Satoshi Nakamoto. Since then, thousands of other cryptocurrencies have been created, each with unique characteristics and purpose. Several types of cryptocurrency are on the market, including Bitcoin, Ethereum, Litecoin, and Ripple. Bitcoin is a decentralized digital currency used to purchase goods and services. At the same time, Ethereum is an open-source blockchain platform that enables the creation of smart contracts and decentralized applications. Litecoin, on the other hand, is a peer-to-peer cryptocurrency that offers faster transaction confirmations and lower transaction fees than Bitcoin. Ripple, meanwhile, is a digital payment protocol that enables fast, secure, and affordable cross-border payments in any currency. The cryptoasset market has multiplied recently, with a total market capitalization of more than $2 trillion as of August 2021. While Bitcoin remains the dominant player in the market, other cryptocurrencies have also gained traction, with some even outperforming Bitcoin in price growth. Investing in cryptoassets can be risky, however, as the market is highly volatile and susceptible to manipulation. Therefore, it is essential for investors to do their due diligence and understand the risks before investing in any cryptocurrency.

9 minutes