The topic of cryptocurrency blew up in the past few years because of people getting rich while investing in them. You have surely heard a conversation where someone bought a certain amount of some coin when it was worth nothing, and now he sits on a large account and he can afford all kinds of things. If not heard, you have read on the internet of situations like these.
If you have heard or read these stories, or you have an example in front of your eyes, friends that have invested are growing more and more, you have definitely thought about investing.
Before you take your card and invest in crypto, there are a few things you should know. That is why is important to make your own research and spend time studying this topic, to make sure that you don’t lose your money because of lack of knowledge.
In this article, we will talk about the most popular types of cryptocurrency, the categories, and examples of each.
These cryptos are made as a way to compensate for some kind of service. Some of them can be used for paying, some for services that some kind of company offers. For example, you have these tokens and instead of paying with real money for a subscription to a service, you pay with these tokens.
There are also tokens that can be traded for some kind of security, whether protecting your acc, or other purposes. Their purpose, however, is not meant to be a replacement for the money, but to be replaced for service.
This is the first, the most popular, and the most expensive coin right now. The whole point of this coin is that it makes the transaction unknown for the feds or basically anyone, so you can buy things or services without their knowing it. They are made with solving complex problems using your computer.
That way you can use your computer to solve these problems and earn bitcoins in reverse. Before they were easier to mine, and now it is not that cost-effective because there are other coins where you can mine more of them and wait for their growth.
These coins are similar to bitcoin, with a different working system. Sure, some use the same system that bitcoin use, but may be improved a little bit. Alternative coins are every other coin except bitcoin, or they are alternatives of bitcoin. They can be used basically for the same purpose, but every company is more centered on a different field. Some are more into electronics, some more into security and etc.
For example, as seen on https://www.babyxrp.org/, this coin is dedicated to marketing and advertising.
Just like bitcoin, there is an exact number of them that can be owned, bought, or sold. With many more that are still unmined. That is keeping the demand and supply in a place where if there are more coins that are owned, their price rises, and vice versa.
With many different options and categories, it might be complicated for first-time investors to start with this crypto world. Before spending money, make sure that you know everything about the coin or token that you are trying to invest. The most recommended thing is to invest in coins that are best ranked to avoid losing money because the coin fails since they are less likely to fail.