A Quick Guide To Current Types And Categories Of Cryptocurrencies

You may already know the king of crypto assets, namely Bitcoin. Or, you may be familiar with Ethereum, the ultimate Bitcoin imitator. However, other types of cryptocurrencies have different names and you may even rarely hear about them before. Learn about crypto assets in dan hollings the plan and follow the steps shown in the plan Nick Sasaki.

Indeed, one crypto asset has different characteristics and uses than others. Hence, the cryptocurrency scene recognizes the categorization of crypto coins based on their usefulness.
What are the types of crypto assets currently in circulation?

1. Store of Value
Example: Bitcoin and Bitcoin Cash
Cryptocurrencies in this category are considered to be able to maintain the value of one’s wealth much better than cash, even gold. This can be obtained because the nature of this crypto asset is similar to fiat money and its supply tends to be scarce on this earth.
2. Digital Currencies

Example: Litecoin, Dash, Monero, Zcash
This type of cryptocurrency is designed to meet the needs of everyday transactions. Unlike cryptocurrencies which are categorized as a store of wealth, this digital currency is not so concerned with maintaining the purchasing power of its owner in the long term.

3. Utility Coins
Examples: Ethereum, Binance Coin, Cardano, Polkadot
In essence, these coins are a valid currency to pay for goods or services available on a particular network. Usually, these coins are used to maintain the reliability of blockchain systems that feature smart contracts.

This type of cryptocurrency will usually launch an initial public offering (Initial Coin Offering / ICO) to raise initial funds to “warm-up” their blockchain system. The rest will subsidize the costs of operating and developing the blockchain going forward.

4. Security Coins
Example: USDT, BCap
Securities coins are digital representations of “real” assets that exist in the real world, which are then recorded in blockchain transactions. Coins of this type are subject to current regulations.

5. Meme Coins
Example: Dogecoin, Shiba Inu
The existence of this one coin is indeed quite controversial. Because, as the name implies, this coin is a representation of jokes or memes that are spread in cyberspace.

Dogecoin, for example, is a pioneer of this coin class. This coin itself is inspired by the doge meme which is quite famous on the internet. Indeed, this type of coin runs on its blockchain. However, many still doubt its inherent value and main benefits.