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Types of Cryptocurrencies

There are more than 2,000 different cryptocurrencies, and in addition to the differences of each one (their value, their market volume…) can be divided mainly into three groups: currencies, profit and investment.

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There are more than 2,000 different cryptocurrencies, and in addition to the differences of each one (their value, their market volume…) can be divided mainly into three groups: currencies, profit and investment. Next, we explain each of these cryptocurrency groups.

“The world of cryptocurrencies is tremendously varied … but most virtual currencies can be divided into three groups.”

  • Divisas: The cryptocurrencies that fall into this category are, simply, virtual money. Its usefulness is to function as an alternative form of payment to paper money. Bitcoin is the best example since, although less and less (because it has become an investment object), it allows buying goods or services offered by different companies.
  • Utility: Within this category we find the crypts that serve as currencies but within their native apps. To put an analogy, they are like Monopoly money: they are only worth buying goods or services in their own decentralized apps. They are used as a means of payment to avoid additional fees.

That is, within an online platform X you could pay with real money (with the subsequent fees and commissions that could lead) or pay with the cryptocurrency of that platform, which in principle should not be subject to many regulations. EOS would be within this group.

  • Investment: These crypts work like the actions of bags. A company makes an ICO (Initial Coin Offering) in which it offers its crypto in exchange for real money to finance itself. The promise made to the buyers is that with the passage of time, these crypts will be revalued and will be able to recover more money from the invested one.

This is the case of MakerDAO, whose cryptocurrency, called Maker, is the second with the most value of all the available ones. Unfortunately, most of the scams that occur in the world of cryptocurrencies (which are not few) occur in this category.

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