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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
Surging crypto prices have led many developers to try getting a cut of the action. And blockchain technology has usefulness beyond just digital currencies. There are thousands of cryptocurrencies, most with very little value and unclear potential. Many advisors recommend investors stick to Bitcoin and Ethereum — if any — and pass on the smaller cryptos. Cryptocurrencies like Bitcoin and Ethereum have a growing track record of holding and increasing in value over time, though recent dips have wrecked the market, the lesser-known cryptos are considered much more speculative and unpredictable. And while PutinCoin and Whoppercoin belong to a category of cryptocurrencies marked more for their absurdity than their potential as either an investment or cryptocurrency, they show just how unique different types of cryptocurrencies can be. While many cryptocurrencies share a blockchain-based infrastructure, there are some striking differences between them. Generally speaking, cryptocurrency can be clustered into distinct categories: Coins, Utility and Security tokens, Stablecoins, NFTs, meme coins, metaverse, and more. This article features the 10 types of cryptocurrencies investors should try out in 2023.
A coin is any cryptocurrency that uses its own independent blockchain. For example, Bitcoin is considered a "coin" because it runs on its own infrastructure. Similarly, Ether is operated via the Ethereum blockchain. The term "altcoin" is used to refer to any coin other than Bitcoin. Many altcoins operate similarly to Bitcoin. Altcoins are one of the types of cryptocurrencies investors should try out.
Like coins, tokens are also digital assets that can be bought and sold. However, tokens are a non-native asset, meaning that they use another blockchain's infrastructure. These include Tether, which is hosted on the Ethereum blockchain, and others.
Meme coins are a type of cryptocurrency that's highly speculative and supported by certain enthusiastic online trading communities. Examples of meme coins include blockchain-based coins and tokens such as Dogecoin and Shiba Inu. Meme coin is one of the types of cryptocurrencies investors should try out.
The tokenization of assets makes them tradable. Instead of trading the asset itself, you trade the token. It was similar to paper money: Instead of trading gold, you trade paper which represents a certain amount of gold. The issue with asset-backed tokens is the lack of oversight. Of course, the issuer of the token can claim to back the asset if it is backed by anything. Without actual checks, this claim isn't worth anything. A one of the 10 types of cryptocurrencies for 2023.
NFTs (non-fungible tokens) are unique types of cryptocurrencies that exist on a blockchain and cannot be replicated. NFTs can represent real-world items like artwork and real estate. "Tokenizing" these real-world tangible assets makes buying, selling, and trading them more efficient while reducing the probability of fraud.
Equity token is a type of security token that works more like a traditional stock asset. In other words, those who hold equity tokens have some form of ownership in their investments. Each token represents a percentage of the property they actually have.
It is a collision between the digital and physical worlds when virtual reality and augmented reality bridge the gap and allow the physical and virtual worlds to interact closely. Recently Metaverse cryptocurrencies are on the rise giving massive returns to their investors this year.
Stablecoins are frequently used as a hedge against crypto market volatility, or for generating passive income through staking or lending. Some popular stablecoins include Tether (USDT), USD Coin (USDC), Euro Coin (EUROC) and Binance Dollar (BUSD).
Security tokens are traded with the expectation to get direct profit from them. In contrast, utility tokens are traded with the expectation to get some utility. For example, a FIL (Filecoin) token / SC (SIA) can be used to store a file. The CVC (Civic) token can be used to verify a user's identity.
A security token is a physical or digital device that provides two-factor authentication (2FA) for a user to prove their identity in a login process. It is typically used as a form of identification for physical access or as a method of computer system access.
