When you choose to launch a cryptocurrency exchange with Merkeleon crypto exchange software development, you should know what currencies to add. Here we discuss the most common ones.
The term digital currency applies to all electronic money with the properties of fiat. Digital currency includes virtual and cryptocurrencies, with both having no physical representation: the US dollar can be digital as a card balance, but not virtual. Bitcoin, on the contrary, is digital and virtual, because it is non-physical.
All cryptocurrencies can be divided into 4 types: bitcoin, altcoins, stablecoin, and tokens. Each of these groups has its features.
Bitcoin is the first crypto that remains the leading digital coin by market cap. Besides, Bitcoin is a global p2p electronic payment system that allows users to directly transact money, without intermediaries.
Bitcoin paved the way to alternative coins, whose share in the crypto market reached 40% in 2023. Not all altcoins are similar to bitcoin: Ethereum is a decentralized platform for creating decentralized apps.
Stablecoins are backed altcoins. They can be backed by fiat (US dollar, euro), commodities (gold), or other cryptocurrencies. All to reduce price volatility.
A crypto coin is a means of payment that operates on its own blockchain platform (Bitcoin, Ethereum, Litecoin, Dash). Coins have technical independence from other projects, while a token is created on the basis of an existing platform, meaning it possesses the weaknesses of the parent platform.
Regardless of the type, all cryptocurrencies are stored on crypto exchanges. This is where traders and investors come for virtual money. If you want to have them come to you, start your platform.