4 main type of crypto-currencies – What are they used for?

There are four main Type of crypto-currencies. Cryptocurrency used to store value, cryptocurrency used as a digital currency, cryptocurrency used as an utility token and cryptocurrency used as a security Token

Cryptocurrency used to store value

You can buy gold or a shared of stock ,hold it, hope for it to grow in monetary value as time passes.

The same way, you can buy certain type of cryptocurrency. Hold it with the intention for it to grow in monetary value as time passes

An example of this type of coin is Bitcoin

Cryptocurrency used as a digital currency

You can have a $100 physical bill on your hand. You can touch it, see it and smell it.

You can go to your centralized bank and deposit that $100 in your bank account. So you not longer have a physical bill.

Now you have $100 in digital form. you cannot touch it, you cannot smell it but you can see it In ones and zeros.

The same way, you can have digital currency, This currency only exist in digital form but it came operate without a central bank.

An example of this is Libra

Cryptocurrency used as an utility token

You can have internet services with a company or gas service services or electrical services within that company, within that ecosystem.

The same way, you have utility tokens that allow you to use a product of service within that ecosystem.

An example of this type of utility token is Ethereum.

Cryptocurrency used as a security Token

You can now buy assets such as real estate, fixed income, equity, commodities, investment funds shares.

The same way, you can buy security token that represent an asset.

The same way that you can buy an share of stock when you go to the stock market, with a security token you can buy a representation of a stock . The only difference is that is that the security token comes in a digital form.

So a security token fall under the same protection and regulation of a regular stock.

An example of this type of security token is Science blockchain.

That’s it.

Take a calculated risk.

Now, start and adjust as you go.