In this segment we’re going to be talking about the six types of crypto currencies and why investors might invest in cryptocurrency with a self directed IRA Roth IRA or other tax advantaged investment account to start digital currencies designed to work as a medium of exchange there are many different types of cryptocurrency but these six are some of the most well known currencies the first is Bitcoin abbreviated BTC Bitcoin is one of the most commonly known currencies and is considered an original cryptocurrency it was created in 2009 as an open source software the author of the white paper that established this digital currency was under the pseudonym Satoshi Nakamoto this was according to bit degreed org so how does Bitcoin work using Blockchain technology Bitcoin allows users to make transparent peer-to-peer transactions all users can view these transactions however they are secured through the algorithm within the black chain while everyone can see the transaction only the owner of that Bitcoin can decrypt it with what is called a private key that is given to each individual owner unlike a bank there’s no central authority figure in the Bitcoin Bitcoin users control the sending and receiving of money which allows for anonymous transactions to take place throughout the world the second is like coin and this is abbreviated as LTC light coin was launched in 2011 as an alternative to Bitcoin like other crypto currencies light coin is an open-source global payment network that is completely decentralized mean there are no central authorities so what’s the difference between bitcoin and litecoin well here are a few differences between these digital currencies light coin is believed to feature fast transaction times the coin limit for bitcoin is 21 million in light coin is 80 four million they operate on different algorithms litecoins being script and bitcoins is sha-256 next is aetherium or eth created in 2015 a theorem is a type of Cryptocurrency that is an open-source platform based on blockchain technology while tracking ownership of digital currency transactions aetherium blockchain also focuses on running the programming code of any decentralized application allowing it to be used by application developers to pay for transaction fees and services on the etherium network fourth is ripple or XRP for short ripple was released in 2012 that acts as both a cryptocurrency and a digital payment network for financial transactions it’s a global settlement network that is designed to create a fast secure low-cost method of transferring money ripple allows for any type of currency to be exchanged from the United States dollar and Bitcoin to gold and connects to banks unlike other currencies ripple also differs from other types of digital currencies because its primary focus is not for person-to-person transactions rather for moving sums of money on a larger scale next is Bitcoin cash Bitcoin cash is a type of digital currency that was created to improve certain features of Bitcoin Bitcoin cash increased the size of blocks allowing more transactions to be processed faster the last cryptocurrency we’re going to cover is a theory implies a theorem classic is a version of etherium blockchain it runs smart contracts on a similar decentralized platform smart contracts are applications that run exactly as programmed without any possibility of downtime censorship fraud or third party interface like aetherium it provides a value token called classic ether which is used to pay users for products or services so let’s briefly talk about cryptocurrency in an IRA at equity trust with equity trust digital asset platform it’s possible for you to invest these popular cryptocurrencies that we’ve gone through in this session in your self-directed retirement account investments can grow in a tax advantage environment which can be a benefit of using your self-directed account to invest in crypto currencies to learn more about investing in digital currency or cryptocurrency in a self-directed IRA

 

 

Post Title: Types of Cryptocurrencies in The World

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