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Home » Blog » Types of Crypto
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Types of Crypto

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Last updated: 20/05/2023 12:04 PM
Coinworldstory
3 years ago
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Types of Crypto
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The world is currently in the middle of a crypto revolution. People all over the world are using crypto to invest, save money, and simply go about their daily activities.

Contents
  • Utility Tokens
  • Exchange Tokens
  • Stablecoins
  • Meme Coins
  • Payment Cryptocurrencies
  • Learn the Different Types of Crypto

The goal of crypto’s creators was to create decentralized money free from control by banks or governments. Crypto has since grown, with initial coins offering tokens for very specific types of purchases.

Collecting different types of crypto is both a fun pastime and a viable investment plan. Let’s look at some of the different types of crypto and what they represent.

Utility Tokens

Utility tokens are a type of cryptocurrency token that provides users with access to a specific product or service. It can be like a blockchain-based game or the use of a decentralized infrastructure.

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Utility tokens serve as currency within platforms and applications. They also serve as payment for fees associated with operating on a blockchain network.

Exchange Tokens

Crypto exchange tokens are digital assets found on a crypto exchange. Exchange tokens, such as Binance Coin, provide users with access to the exchange’s services. Users enjoy discounted trading fees, special features, and other perks.

Exchange tokens are built on their own blockchain. They are mainly used for accessing exchanges’ features and offering different utility services.

The exchange tokens are also used to create a decentralized exchange platform. This allows users to perform transactions within the platform without using a centralized broker.

Stablecoins

Stablecoins are a type of cryptocurrency pegged to a stable asset like fiat currency. They can also be backed by precious metals, energy, or other crypto-based assets.

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Stablecoins are beneficial when users want to minimize price volatility. And at the same time preserve the advantages of blockchain technology. Particular benefits of using stablecoins include low exchange fees, fast transactions, and privacy.

Furthermore, stablecoins can also help facilitate faster and more secure digital payments. The two main categories of stablecoins are algorithmic stablecoins and pegged crypto coins.

Meme Coins

Meme coins are a special kind of cryptocurrency based on popular memes, humor, and internet culture. They are usually created around a common theme or idea and are often used to generate trading activity and hype. Some popular meme coins include Dogecoin, Coinye, and Potcoin.

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Dogecoin came about from a joke based on a meme featuring an image of a Shiba Inu. Coinye was actually inspired by the music artist Kanye West. Potcoin came up with the intention of facilitating transactions in the marijuana industry.

Payment Cryptocurrencies

Payment cryptocurrencies are a type of cryptocurrency used for making payments. These include Bitcoin, Ethereum, Litecoin, Neo, and Cardano.

Bitcoin, the most popular cryptocurrency, is used for direct exchanges on the bitcoin network and has a limit of only 21 million units. Ethereum is based on blockchain technology. It enables developers to build and deploy decentralized applications. 

Before buying crypto, you have to make sure that you make yourself familiar with cryptocurrency first. This is for you to make an informed decision about the investment you will make.

Learn the Different Types of Crypto

Cryptocurrency is becoming a standard form of payment around the globe. There are many different types of crypto to choose from, ranging from Bitcoin to Dogecoin. Each type offers different benefits, risks, and applications, so it is important to understand the different types of crypto and their individual use cases.

Ready to get started with crypto? Do your research to find the type that best suits your needs.

Be sure to check out other posts for more information.

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