Popular types of cryptocurrencies

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In the past few years, interest in cryptocurrencies has grown significantly, not only from investors but also from developers’ side. As a result, many types of cryptocurrencies, which have different operating principles and purposes, have appeared on the market.

Coins

Coin is a cryptocurrency that runs on its own blockchain technology. They can be exchanged for other cryptocurrencies and mined (though their issue is frequently limited). The main function of coins is to serve as a digital currency. Some of the most popular examples of coins are Bitcoin (BTC) and Ethereum (ETH). Buy and sell Bitcoin best on the AAX exchange.

Tokens

Token is a crypto-asset based on an existing blockchain. It can’t be mined, but it can be received or transferred. There are three main types of tokens:

  • Security tokens—confirm the ownership of an asset;
  • Utility tokens—designed to create virtual currency on a platform (that includes in-game currencies);
  • Asset-based tokens are tokens secured by real, short-term assets.

Popular tokens are Binance Coin (BNB), Uniswap (UNI), and Shiba Inu (SHIB).

Stablecoins

Stablecoin https://trends.aax.com/the-ultimate-comparison-top-stablecoins-ust-usdt-usdc  is a crypto-asset tied to another asset (fiat currency, cryptocurrency, or precious metals) and has a stable price. Unlike other cryptocurrencies, stablecoins have very low volatility. Popular stablecoins are Tether (USDT), USD Coin (USDC), and Binance USD (BUSD).

Altcoins

Bitcoin is the oldest cryptocurrency, which is still the leading digital asset. It currently holds more than 59% of the market. The alternative to bitcoin is altcoins; they include all types of cryptocurrency except for bitcoin itself. Altcoins include, for example, Ethereum (ETH), XRP (XRP), and Cardano (ADA).

DeFi

Decentralized finance (DeFi)) is a financial instrument (services and applications) that is based on blockchain technology. Its main task is to become a decentralized alternative to the traditional banking sector. Most DeFi are created on the Ethereum blockchain. These include Avalanche (AVAX), Uniswap (UNI), and Chainlink (LINK).

NFT

NFT (Non-fungible token) is a cryptographic token that cannot be exchanged or replaced with another token. It is used to create a digital imprint of any unique object; it can be a picture, a photograph, a video, music, or a gif. Popular tokens associated with NFT are Axie Infinity (AXS), Decentraland (MANA), and The Sandbox (SAND).