What are the Major Types/Categories of Cryptocurrency?

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 What are the Major Types/Categories of Cryptocurrency?




As we know that there are a vast number of cryptocurrencies available out there in global cryptocurrency markets, such as Token, Altcoin, Litecoin, etc. Among them all, Bitcoin has remained at the top since its commencement. Bitcoin closely relates itself with blockchain and its evolutions. As it's the oldest digital currency, it has played a major role in the rise of blockchain technology. After Bitcoin, other cryptocurrencies have also been launched with similar features and certain improvements, such as Stablecoins, Altcoins, Utility tokens, etc.


There are 3 major types of cryptocurrencies available in the crypto sphere:


1. Bitcoin
2. Altcoins
3. Tokens

Bitcoin: 


It has been the most widely used and popular crypto coin in the world. Some of the many applications of Bitcoin are DApps, banking, online payments, currency exchange, etc.  There is an increasing number of countries that are allowing Bitcoin to be used in their shops and local stores. It has evolved to a certain level which has raised the demand for Bitcoin ATMs too.

Bitcoin can even be used in some global transactions for personal use, such as to buy a Tesla vehicle and Starbucks coffee in some countries. And its price has nearly reached the level same as a sports supercar from 2013 to 2021.


Altcoins: 



Most of the Altcoins are derivatives of Bitcoin. Generally speaking, they are selling themselves as a better alternative to Bitcoin. The term "Altcoins" means all cryptocurrencies, excluding Bitcoin. Altcoins chiefly include mining-based cryptocurrencies, security tokens, Stablecoins, and utility tokens. It may only include mining-based crypto coins as the usage continues to grow with time. Ethereum is one of the best Altcoin of all time till 2021. Other successful examples of Altcoins are Namecoin, Litecoin, etc.


(i) Mining-Based Cryptocurrencies (Altcoins): Mining is a part of a cryptocurrency network, which is used to generate new tokens for circulation via a crypto network. And it is also used to verify, authenticate, and add transactions to public ledger systems. 


(ii)Stablecoins: As the name suggests, these coins are a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset like Gold and USD. Stablecoins offer instant processing and security to transactions, that's why Stablecoins are getting attention from everyone in the crypto market.


(iii) Security Tokens


These coins are related to businesses and also release some ICOs for use. Using security tokens means that investors can expect that their ownership stake is preserved on the blockchain ledger. Security tokens are like a bridge between the traditional finance sector and the blockchain world. Additionally, it also benefits both of the sectors, equally. 


(iv) Utility Tokens


An asset is used as a claim on services and sometimes dealt as an ICO. Filecoin is a good example to consider when you talk/write about utility coins. Filecoins are designed to be exchanged for decentralized storage spaces.

Tokens:


Tokens are very much like an ICO or stock offering. They can be of any type, such as value tokens,

security tokens, and utility tokens. Plus, this category is used to describe a function and is not really

used as any traditional money.


For example, both Bitcoin and Ether refer to crypto tokens.


Read more about Bitcoin, tokens, and Altcoins in the below-shared links.

Get in touch with Steem Experts to get a quote for any cryptocurrency, token, or

blockchain development needs. We also provide ICO marketing and development services to

our global customers. Sources:

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