Are these different types of cryptocurrencies or are they all just competing to be digital money? How different are they?
In general, Cryptocurrencies can be grouped by utility how are they intended to be used.
There are different types of Cryptocurrencies – in this short article, we will briefly talk about the two main types:
Payment Cryptocurrencies
Payment cryptocurrencies can be thought of as digital monies operated by a distributed network of computers running a shared blockchain software. These are intended to eliminate the need for government-issued currency.
This type of cryptocurrency is basically digital currency that can be transferred from one individual to another individual over the internet. These are known as Crypto Coins.
Some of the most popular payment cryptocurrencies are:
§ Bitcoin – most popular with very high value
§ Bitcoin Cash
§ Dogecoin
§ Litecoin
§ Tether
Infrastructure Cryptocurrencies
This type of cryptocurrency is also known as Tokens and they have more use than digital money. Tokens are created on top of an existing blockchain and can be used as part of a software application (for example to grant access to an app, to verify identity, or to track products moving through a supply chain), or they can even represent digital art (like with NFTs that certify something as unique).
Some of the most popular infrastructure cryptocurrencies are:
§ Algoran
§ Cosmos
§ Ether (using the Ethereum platform)
§ Lisk
§ Polkadot
Cryptocurrency investments are being talked about a lot today.
For sure, since its inception in 2009 to today, Bitcoin’s value has grown a lot – trading at over USD51,000 (December 7, 2021). Ethereum, the 2nd most valuable cryptocurrency is trading at over USD4,000 today.
Lately with government policies in many countries changing regarding Cryptocurrencies and the effects of the Covid-19 pandemic, valuations of cryptocurrencies have been changing.
Like most investments, there has been lows and downs for these currencies as well, even though mainly highs. The decision is yours whether to invest in cryptocurrencies or not.
*Disclaimer: Inovva Media Inc. Umbrella Universe and the author of this article are not financial advisors. This article is only for general information. For any financial advice, please talk to your financial advisor.
