{"id":14420,"date":"2024-11-16T19:42:17","date_gmt":"2024-11-16T19:42:17","guid":{"rendered":"https:\/\/cryptoproguide.com\/%d0%b2%d0%b8%d0%b4%d1%8b-%d0%ba%d1%80%d0%b8%d0%bf%d1%82%d0%be%d0%b2%d0%b0%d0%bb%d1%8e%d1%82\/"},"modified":"2024-11-22T11:28:38","modified_gmt":"2024-11-22T11:28:38","slug":"types-of-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/cryptoproguide.com\/tr\/types-of-cryptocurrencies\/","title":{"rendered":"Types of cryptocurrencies"},"content":{"rendered":"

As of July 2021, there were 6,739 digital coins in circulation, and the total capitalization of<\/span> the cryptocurrency market exceeded $1.5 trillion. Assets differ in their mining<\/span> algorithms, issuance mechanisms, purpose, maximum number of coins, degree of centralization and other parameters. However, all types of cryptocurrencies can be considered as objects for investing and earning on changes in their exchange rates.<\/p>\n

Difference between cryptocurrency, token and coin<\/h2>\n

All digital assets can be divided into 2 basic categories. The first includes coins that have their own blockchain (operating on the basis of a distributed chain of blocks). This is a decentralized registry in which information about the transactions performed is entered. Each participant in the network can accept and transfer digital assets, called coins, within it.<\/p>\n

A transaction is recorded in the blockchain after its authenticity is verified using special algorithms by miners or wallet owners. The result of the computation must match on all computers connected to the network.<\/p>\n

Coins can be compared to fiat money. If we imagine that the Bitcoin network blockchain is a single country, then the bitcoins circulating within it are its national currency, like dollars, rubles or euros. Coin holders can transfer them to other users, store them in wallets, and exchange them on exchanges. Many koins are mined by participating in confirming transactions within the network (mining).<\/p>\n

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The second category of digital assets is tokens. These are units of account that do not have their own blockchains and exist only within other chains.<\/p>\n<\/blockquote>\n

It is correct to compare tokens with discount cards in stores. The owner of a bonus certificate can get a discount, but he still has to use regular currency to pay for the order. A discount card is not considered as such, although it brings additional benefits. In the electronic world, tokens are only an auxiliary tool, a unit of accounting for an electronic asset, which is entered into the blockchain in the form of a smart contract – a record in the register, confirmed by other participants.<\/p>\n

\n\n\n\n\n\n\n\n\n\n
<\/th>\nCharacteristics<\/th>\nToken<\/th>\nCoin (koin)<\/th>\n<\/tr>\n<\/tbody>\n
<\/td>\nHas its own distributed register (blockchain)<\/td>\nNo<\/td>\nYes<\/td>\n<\/tr>\n
<\/td>\nWorks on the basis of cryptographic algorithms<\/td>\nYes<\/td>\nYes<\/td>\n<\/tr>\n
<\/td>\nCan be used as a means of payment<\/td>\nNot always<\/td>\nYes<\/td>\n<\/tr>\n
<\/td>\nIssuance<\/td>\nUsually occurs one-step at the start of the project.<\/td>\nIt is done gradually by mining new coins by miners.<\/td>\n<\/tr>\n
<\/td>\nExample (ticker)<\/td>\nUSDT, USDC, UNI<\/td>\nBTC, LTC, XRP<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

At the same time, tokens and coins can be combined by the word “cryptocurrency”. This category includes digital assets that have a market price and are used as a means of payment.<\/p>\n

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Bitcoin and altcoins<\/h2>\n

In 2009, the first successful cryptocurrency, Bitcoin, was launched. This coin and the ideas proposed in it were relatively quickly supported by traders and investors. The success of the project led to the emergence of alternative payment systems:<\/p>\n