Types of CryptoCurrencies
Learn types of crypto currencies to understand and invest.
- Store of Value
- Smart Contracts
- Oracle Like Crypto
- Privacy
- Financel facilitator
- Stable Coins
- Tokens
- Meme Coin
Store of Value:
These cryptos are asset class. They are limited in supply and high on demand/circulating supply. It’s like gold which is investment and asset class in today's world. They don’t have any application but valuable due to limited supply and high adoption.
Example: Bitcoin.
Smart Contracts:
Smart contract based cryptos are use to perform a legal agreement between two or more parties based on an event. These cryptos are highly useful. They allow to build decentralied apps(dApps) on them. And Upon dApps, NFTs could be built.
Examples: Ethereum, Cardano
Smart contract examples: CryptoKitties, Theta Network(decentralied streaming platform)
Oracle Like Crypto Networks:
These types of cryptos solve some real world problems like datacenters problems and other related problems. Any crypto who solves these problems, investors go towards it.
Example: ChainLink
Privacy Coin:
Privacy coins are use for hidden transactions. These coins are use in places where we don’t want our transactions to be trackable. Popular use cases are ransom, money laundering, etc.
Examples: Monero, ZCash, Dash
Finance Facilitator:
These cryptos help in financial transactions. They either solving any problem in or helping any financial structures like transactions, etc.
Examples: Dash, Bitcoin Cash, TelCoin, Ripple(Not XPR).
Stable Coins:
Stable coins are build on smart contracts. They are tied to a fiat currency. For example a stable coin which is tied to US dollar. So, there price only fluctuate with USD.
Example: USDT, USDC, BUSD, DAI
Exchange Tokens:
These type of crypto tokens are internal use kind. For example a company release a number of tokens for their customers, subscribers, etc. to use the tokens internally in a particular limited capacity.
To understand it with an example is lets suppose PSL release a limited number of tokens and anyone who is holding the token could only enter the stadium. Now, the tokens are limited and could only be valid in PSL.
Example: WazirX
Meme Coin
Meme coins are joke coins. These are crypto currencies which don’t have any value and works on hype. Unlike store of value, it has large number of supply, that’s why how much they go up, they will be dumped sonner of later.
Example: Doge, Shiba Inu
Publish Date: 21 June 2021
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