The world of cryptocurrencies has exploded in popularity over the last couple of years with news about thousands of people earning a fortune in a few investments into the most popular cryptocurrency of them all, Bitcoin. But nowadays we hear of all different kinds of cryptocurrency but all of which fall into different types of function.
Here are 5 different types of cryptocurrency as well as their function:
- Currency - Crypto coins can be used to purchase physical products and the most popular of them would be Dogecoin, Litecoin, Bitcoin Cash.
- Stablecoins - Stablecoins are a type of asset backed by a reserve.
- Proof Of Stake - Proof of stake is a mechanism that regulates the transactions between users.
- DeFi (Decentralized Finance) - This is an umbrella term that refers to applications that use public blockchains and cryptocurrency assets to disrupt the traditional finance sector.
- NFTs (Non-Fungible Tokens) - NFTs are assets that are secured and backed by blockchain technology.
Take a look at the video below by the YouTube channel: Blockchain Magazine on 5 Types Of Cryptocurrencies And Their Function...