Confused by Crypto? Start With These 3 Main Types
The word cryptocurrency has come to encompass much more than just Bitcoin (CRYPTO: BTC). Therefore, knowing where to start can be confusing. To help with this, we can break down cryptocurrencies into different categories based on their properties. This categorization helps with distinguishing one type of cryptocurrency from another.
While there are many more than just three types of cryptocurrencies, the ones that we will cover here are a good place to start. The first are pure cryptocurrencies, such as Bitcoin. The second are stablecoins, which are backed or pegged to fiat currency. The last are tokens, which are a lot like stocks, but for cryptocurrency companies.
A pure cryptocurrency is built to be a form of money on the internet. Although Bitcoin was the first cryptocurrency intended to be the native currency of the internet, it has many competitors.
Source Fool.com
