Cryptocurrency is not easy to understand. If you have to select one right project among 10000 projects, it will be a thankless task as each project has its significance, values and properties. It would be justified for beginners to understand cryptocurrency in four categories which cover all the digital assets and their names as cryptocurrency, stablecoin, tokens and meme coins. If Bitcoin is new to you here’s a detailed instructions for utilizing a bitcoin exchange.
Initially signup up to any crypto exchange portal like Binance and keep an eye on the wide range of currencies going up and down in the market with their phase value. Although coins appearing on the internet are not accessible due to them being restricted by their organisations. But these situations do not apply to every Coin. Among all, there are four popular categories which fall under their properties. So let’s go through all four categories and their usefulness and why your investor goes with these coins to build and grow your crypto portfolio moving forward.
Currencies
At the start of cryptocurrency, your mind will be confused and spring first. like how currencies like bitcoin and Ethereum are generated in their blockchain and designed to work safely and securely with great speed via using platforms like the internet. These statements are fixed with their results as the currency value stored in their records. The price of the currencies is skyrocketing as the graph goes up from a smaller fraction of cents to hindered and thousand, especially in the case of bitcoin and Ethereum. Currency like bitcoin or Ethereum is famous for NFT projects and these currencies are suitable for investment for everyday investors.
Stablecoins
Stablecoin is considered to be more stable than other currencies. As it suggests, this currency is fixed to a certain limit and backed by some reserves like Fiat currency, gold and cash equivalent. Therefore, the found line Tether is not like stablecoin. because, in the case of other currencies, the prices get volatile. Therefore stablecoin is safest for such investors who cannot take risks due to uncertainty of the prices of the coins.
If I planned to earn money via cryptocurrency, then stablecoin is not a smart choice because they are suited for digital transactions and is a kind of intermediate between Fiat and digital currency.
Native Project Coins
Hundred of tokens will be found in the case of native project coins. In this project, individuals have the right to access a specific project and their property will depend upon the value of the project. For example, the platform known as socios.com is native to CHZ, see the central logo below.
In this scenario, you can purchase tokens for your favourite team for some exclusive benefits. Therefore to engage with the platform of socioa.com, you have to initialise your purchase with CHZ. In short, the above-said currencies are the best option in case you need to engage with new or existing projects and to further do beyond investing your money. But before starting with these projects, do your research while investing in such projects as people can do wig pulling these tokens and not a single penny will be left with you.
Meme Coins
Memecoins are one of the riskiest investments where prices swing with a huge margin. Something the fluctuation margin reaches 100 per cent in a short period. The community behind them does not have intrinsic value. Memes are usually found in places like Reddit and Discord. A good investor always makes money by buying or selling their currency at a good time. Therefore, it is evident that memecoin is not a choice in some portfolios. never make them a bulk of your portfolio due to their inconsistent marketing value.
Closing Thoughts
Trading with cryptocurrency could be interesting and beneficial if used safely and it is a good option for investing and trading purposes. It is a good option to make money via crypto trading. This article suggests different terms and types of coins as per the requirement and their benefits. During the crypto journey, it is important to know the cryptocurrencies before investing in them and understand about currencies which you want to access. Crypto can set-up up every day. Crypto can go up and down with every investment.
