A crypto enthusiast should be able to define what cryptocurrency is and why he should even find out why it is imperative to have sufficient knowledge about it. Cryptocurrency represents the digital form of money. Bitcoin was the first cryptocurrency which dominated the cryptomarket eversince it came out in 2009 until the first alternative coin or “altcoin” was introduced to the market in April 2011. All other altcoins started to emerge and they continue to sprout up to the time of this writing. There is an estimated 2000 altcoins in existence at present. It is important to know why cryptocurrency and blockchain are slowly taking over the world’s money system.
People of today exchange information through emails and other forms of transferring data, images, sounds and other files over the internet. As we can no longer imagine a world without internet to use for all of our transactions, personal and business, it’s high time to design a means to transfer something of value.
This was made possible by digital or virtual money called cryptocurrency. As the term suggests, it is encrypted money that takes with it a technology called blockchain. Without diving into the histories and technical abyss of cryptocurrency and blockchain, here is an enumeration of the 3 types of cryptocurrency an enthusiast or a would-be investor should at least know.
Currency
It is a store of value and a means of exchange. As a “currency”, it is also a unit of account . Like Bitcoin, it increases its value as people attribute value to it by using the coin.
Utility
Like Etherium and Filecoin, it is a decentralized platform that runs smart contracts and other applications without any intermediary using blockchain. Decentralized would mean without any third-party interference. Utility coins create a storage network for storing and retrieving data without any middle-man.
App/Platform
This is the cryptocurrency version of an app or platform. They are built on top of utility coins. An example is Augur, which is a platform for prediction markets.
It is important to know its types, where to buy and trade, and which coin to choose. Proper research by reading the coins white paper, checking the trends & coin marketcap can help educate a would-be crypto-user before diving into the game. Stand a better chance not only in succeeding but also in getting the best cryptocurrency experience by visiting orozu.com. Uncover the opportunities you can have by owning an Orozu coin and why it is your best entry to the game.