In the previous article, we learned about the difference between digital currencies and cryptocurrencies
Today we start with the categories and classifications of cryptocurrencies
# Categories of digital currencies
1. Cryptocurrencies
- Bitcoin (BTC): The first and most famous cryptocurrency, used as a means of exchange and store of value.
- Ethereum (Ethereum - ETH): Used to run smart contracts and decentralized applications.
Solana - SOL: Known for its speed and efficiency in processing transactions.
2. Tokens
Uniswap - UNI: A token used on the Uniswap decentralized trading platform.
- Decentraland - MANA: A symbol used in the virtual reality world Decentraland.
- Chainlink - LINK: A code used to connect smart contracts to external data.
3. Stablecoins
- Tether (Tether - USDT): Its value is linked to the US dollar.
- USD Coin (USDC): Another stablecoin that is pegged to the US dollar.
Dai (DAI): A stable currency that relies on smart contracts to maintain its value.
4. Decentralized Finance (DeFi)
- Aave (AAVE): A platform for decentralized lending and borrowing.
Compound (COMP): Another platform for decentralized lending and borrowing.
- SushiSwap (SUSHI): A decentralized trading platform based on the automated market maker model.
5. Non-Fungible Tokens (NFTs)
- CryptoPunks: A set of unique tokens that represent digital characters.
- Bored Ape Yacht Club: A set of unique icons that represent images of boring monkeys.
- Axie Infinity (AXS): A game based on non-fungible tokens.
6. Meme Coins
- Dogecoin - DOGE: A meme currency that started as a joke but has gained great popularity.
- Shiba Inu (Shiba Inu - SHIB): Another meme coin based on the Shiba Inu dog meme.
Baby Doge Coin: Another version of Dogecoin.
7. Currencies based on smart contracts (Smart Contract Platforms)
- Ethereum (Ethereum - ETH): Used to run smart contracts and decentralized applications.
Cardano (ADA): A smart contract platform that aims to provide a secure and sustainable environment.
- Polkadot (DOT): aims to connect different blockchain networks.
8. Proof of Work currencies
- Bitcoin (BTC): It relies on the mining process to verify transactions.
Litecoin (LTC): A modified version of Bitcoin that aims to provide faster transactions.
- Monero (XMR): Focuses on privacy and anonymity of transactions.
9. Proof of Stake currencies
Cardano (ADA - Cardano): relies on holding currencies to verify transactions.
Polkadot - DOT: It relies on the Proof of Stake model to verify transactions.
Solana - SOL: It uses the Proof of Stake model to improve transaction efficiency.
These are some of the main categories of cryptocurrencies with examples of each category.
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