In order for newcomers to the market to easily understand cryptocurrencies, we will introduce you to the three main types of cryptocurrencies you will come across to. First, there are platform based cryptos, than we have currency based ones and at the end, we have application based cryptocurrencies.
The currency-based ones have the ability to store value and make transactions. In this group, we can name Bitcoin, Monero or Bitcoin Cash. Platform-based cryptos offer the possibility to build new technologies upon them. Here we can name Ethereum, Neo, and Stratis. Finally. Application-based cryptocurrencies offer solutions for many problems. Let’s have a closer look.
Bitcoin is a digital currency that you can send and receive from other people. It’s also one of the most popular types of cryptocurrencies. It’s much like regular money that we use every day with the difference that is not physical. Bitcoin is decentralized which means it is not backed up by a bank or another third party. This also means that coin transfer can be done privately without the need of sharing your personal information.
Today you can find hundreds of altcoins on the market. When they first emerged, they worked as an alternative to bitcoin with minor differences. However, not all of them today are a substitute for bitcoin. Many of them have drastically different purposes.
dApps are very unique cryptocurrencies. They don’t use their own blockchain. dApps can be built on blockchains like Ethereum’s. You can create smart contracts with them too. In order to purchase something from a dApp you will need to acquire tokens. dApps offer many opportunities such as creating a whole new world of regulating, doing business and even governance.
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