Get to know Cryptocurrencies and the Most Popular Types

Cryptocurrency is touted as a digital currency whose presence is quite attracting the attention of the world, including in Indonesia.
The public's interest in collecting crypto money was initially very small, but now it is quite high due to the high demand for investing in this crypto asset.
Even so, cryptocurrency is not without its pros and cons. In Indonesia, the Commodity Futures Trading Regulatory Agency (Bappebti) makes regulations regarding crypto-asset trading.
So, how does this cryptocurrency work, and what are the types? The following is an explanation from various sources.
What is Cryptocurrency ?
Referring to the definition of cryptocurrency from Investopedia, cryptocurrency is a digital currency that uses cryptography as collateral. With cryptography, cryptocurrencies cannot be faked or manipulated. For the process of recording cryptocurrencies, they generally use a system called Blockchain technology. Blockchain is like a ledger that can record all transaction data efficiently and can be verified. This Blockchain scheme is managed peer-to-peer collectively by following a set of protocols to validate new blocks. Cryptocurrencies exist in every country, so transactions can be carried out between countries without being affected by exchange rates.
Most Popular Types of Cryptocurrencies
Bitcoin (BTC)
Bitcoin is one of the most popular and most traded cryptocurrencies. The growth in the value of crypto assets continues to increase. Since it first appeared, Bitcoin was targeted to enter on a global trading scale including peer-to-peer and used as digital cash, so the demand was high.
Litecoins (LTC)
The Litecoin crypto asset also has high liquidity. In the market, Litecoin is currently circulating with a total of 84 million or more. The advantage of Litecoin is in the short-addition process, which is 2 minutes compared to other crypto assets. Even now, Litecoin is still the mainstay of investors.
Ethereum (ETH)
This Ethereum crypto asset is widely traded and the process of disbursing funds is relatively easy compared to others. Ethereum crypto asset is a digital currency with a smart contract concept that allows developers to release applications on smartphones.
Binance Coin (BNB)
Citing CNBC, Binance Coin holds a market cap of 4 percent and its price growth beats Bitcoin and Ethereum. This unit of BNB coin is worth US$641.43 or around Rp9.1 million. Even the nominal is said to continue to increase.
Cardano (ADA)
The Cardano cryptocurrency is the world's first blockchain with a more efficient system. Cardano also ranked 7th in the market in May 2021, with prices that continue to be high and is the safest cryptocurrency for now.
How Cryptocurrency Works?
The way cryptocurrencies work is tied to a digital, encrypted, and decentralized system, according to Forbes. That way, cryptocurrencies do not get central control like conventional currencies in general. Thus, the entire system control of this cryptocurrency is fully held by cryptocurrency users via the internet. As stated by Satoshi Nakamoto who initiated Bitcoin, that crypto assets are electronic payment systems with cryptographic evidence, namely transactions verified by the Blockchain. That's a series of notions of cryptocurrencies, their types and how they work, so you don't choose the wrong crypto asset.