What are the different types of cryptocurrency?

With less and less of these digital coins can be mined, the value of the digital currency is expected to rise. Examples of payment cryptocurrencies include Bitcoin, Litecoin, Monero, Dogecoin, and Bitcoin Cash. The second major type of cryptocurrency is the Utility Token. Tokens are any cryptographic asset that runs on top of another blockchain.

What are specialized cryptocurrencies?

Governance tokens are another example of a specialized cryptocurrency. They give token holders voting power in a corresponding crypto project. You can start investing in cryptocurrencies through existing crypto exchanges and investing platforms.

What is a cryptocurrency & how does it work?

A cryptocurrency is a new kind of digital asset that exists on a decentralized network called a blockchain. The term is made up of two constituent parts: “ crypto ” which is a shortened version of the word ‘cryptography,’ and “ currency ” which means a monetary denomination of value or simply ‘money.’

What cryptocurrencies are based on a blockchain?

For example, there are Bitcoin and Ethereum blockchains. But there are also cryptos that are built on top of an existing blockchain rather than starting from zero. Ether is the cryptocurrency native to the Ethereum blockchain, but is also available for trading on other exchanges like Coinbase, Binance.US, and Robinhood.