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Types of Cryptocurrency

Types of Cryptocurrency

Cryptocurrency is a digital currency that functions just like a paper currency. Cryptocurrency in its early days wasn’t very popular, and you wouldn’t hear about it all that much but may hear the occasional gossip. However, nowadays, almost every household has a personal computer and the increasing digitalization of the economy and everything. It appears that crypto has grown exponentially in popularity and its users.

Every day millions of people join crypto in hopes of making money quickly and easily. These are two main kinds of cryptocurrency: one is tokens, and the other is coins. Both of these are widely popular, but they have their differences. Here we will give you a short overview of the pros and cons of both of these types of cryptocurrencies.

Crypto Coins

These are the most common type of cryptocurrency due to the decentralization and greater security of these coins. These coins are a digital currency that records transactions, and a new one is made when computers perform complex mathematical calculations.

The coins are supported by a blockchain which is a list of continuously growing data or records. As its name suggests, it contains blocks of data or records joined together, and so the record saved is permanent and is always valid as every other block checks every new block in the chain before being added.

Types of Crypto Coins

After seeing the popularity of the original Bitcoin click here, many different types of crypto coins started to appear on the market; the source code is available to the general public, which also helped boost the popularity so people could easily create their type of coin. The most popular crypto coins are Ethereum, Bitcoin Cash,  Bitcoin, and Ripple. All of these types of coins are currently the most popular ones in the market. They work on the same principle, with the only difference in them being the type of blockchain algorithm their programmers have applied.

How to Earn Crypto Coins?

After looking at the sudden increase in the value of the crypto coins, it is no wonder that many people have now started to be attracted towards them and every day try to find ways to get these coins. Here we will give you a quick guide to help you to earn your very own crypto coins.

The most popular and easy way to earn crypto coins is to mine them. However, the efficiency of mining depends on the type of coins you are mining. Because as the number of coins in circulation increases, mining becomes harder, so it is recommended to check before you start mining a certain type of coin. Dogecoin is recommended as it is a new type of coin getting popular very fast, so it is recommended to mine them while still profitable.

Tokens

The other type of cryptocurrency is tokens. The tokens are a virtual currency that anyone can use for trading. Tokens are like coins, but they have a wider scope of use as many people accept them. Some companies even do all of their trading or business in tokens as it is safe. They can easily keep a good record; however, they still need to be mindful of hacking attacks and invest in cybersecurity, but that is easier than taking care of large amounts of physical currency that anyone can grab and run away.

Types of Tokens

Tokens are divided into multiple types depending on the kind of purpose they serve. Utility Tokens are a type of token used only in the application or platform they are created for; they are most commonly used to make transactions within that platform, such as shares of a specific company on the stock market.

Security tokens are mostly similar to utility ones except that they are limited by laws and are bound by stock trading rules, unlike utility tokens. Asset tokens are linked to or supported by a physical object like gold or some property; this makes them more secure and safe to use. Tokens can only be earned using real currency or by doing some tasks via an app that rewards reward tokens.

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