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What You Need To Know About The Different Types Of Cryptocurrencies


We all know that bitcoin is the first type of cryptocurrency. Satoshi is the creator of the first digital currency or the cryptocurrency and the rest is history. The invention of cryptocurrencies is still in process and use crypto a lot in invading the market. The types are also vast when it comes to diversification in the field of crypto.

So, you have many other options than bitcoin to make investments, sell, buy, or in short, trade. Bitcoin is one of a kind but the later cryptos were invented just to clear the flaws in bitcoin. However, the importance of the bitcoin is still intact but there are new cryptos that are giving some real competition to the bitcoin.

Cryptocurrencies are divided primarily into these categories:

  • Bitcoins
  • Various kinds of altcoins
  • Stablecoin
  • Governance tokens
  • Security tokens
  • Utility tokens
  • Meme coin 
  • Forks

Now, here is the basic idea about all of these coins.

Bitcoin – There is nothing more to explore about bitcoin. We all know by now that it is the first of its kind. The first cryptocurrency was invented at the time was the great recession. Its creator has an intention at heart that one day this digital coin system would replace the conventional currency that is the fiat currency. It is not that bitcoin has been getting this much appreciation. It did not have the value that it has today. Initially, it started with no value and now it has beyond normal.

Altcoins – Altcoins are nothing but the alternative to bitcoin which is why it is named altcoins – alternative coins. Initially, when bitcoin was invented, many flaws were there which was dragging the first digital coin back. Therefore, others thought to solve those problems of bitcoin in some new cryptos. Thus, started the journey of altcoins. The first altcoin was Ether which works on the technology of Ethereum.

Stablecoins –no matter which cryptocurrency is coming into the market, none of it was void of volatility. Therefore, something needed to be done as most people were very confused about whether it would be safe to invest in cryptos. Keeping the problem in mind happened the invention of stablecoins.

These types of coins are very much unique in their way because stablecoins are quite stable in comparison with other cryptos. It is to be noted that one stablecoin can be pegged with the value of USD whereas another one can be pegged with the Japanese Yen. There are tons of other stablecoins that are connected to different fiat currencies.

Most of the time, the value is fixed in 1:1 proportion. It means, if the value of a certain currency rises or falls, the value of the stablecoin would also move accordingly. Now, the value of fiat currencies does not move as frequently as crypto. Therefore, this system provides stablecoins with a certain amount of stability.

Utility token –not every cryptocurrency has a monetary value. Each one of them operates in its distinct way. For example, the utility tokens are completely utility based. It means, there is no monetary value to utility tokens. Rather, there is a service or goods associated with it. It means that when you are buying a particular service or goods, you can pay with that utility token. One of the famous utility tokens is the Axie Infinity.

Security token – security tokens are an asset that provides you some kind of security when invested in it. In reality, these tokens are mostly tied with some kind of security such as stocks, gold, bonds, or some other assets. These are the securities that provide a sense of stability and security as none of these asset classes shows as much volatility as the cryptos.

Meme coin – the invention of the meme coin was based on a joke on a joke; later, it become famous when people started to see its potential. There are several meme coins available in the market among which the most accepted one is the dogecoin which is based on Shiba Inu (Japanese dog).


When you need to understand cryptocurrencies all at once, going through this useful piece of information will be of much help. And while trading, could be a trustworthy site to start from.

Alexia Hope

Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.