#educational Supply 🤔☕ Cryptocurrencies have gained popularity in recent years, and understanding how they work is essential. Here's a rundown of the **supply of cryptocurrencies** and the **most common types**:
1. **Circulating Supply:**
- Represents the amount of coins currently on the market.
- These coins are available for trading and transactions.
- It's similar to the number of shares in circulation of a company.
2. **Total Supply:**
- Includes all coins generated on the network, regardless of whether they are on the market or not.
- Some cryptocurrencies, such as Bitcoin, are unlocked over time due to mining.
- Total Supply may differ from Circulating Supply.
3. **Max Supply:**
- Indicates the maximum amount of coins that can be created.
- Some cryptocurrencies have a fixed limit, while others may burn tokens to reduce their supply.
- For example, Shiba Inu has a Max Supply of 1,000 billion, but there are currently 350 billion in circulation.
As for **types of cryptocurrencies**, here is an overview:
- **Altcoins:** These are alternatives to Bitcoin, such as Ethereum, Ripple, and Litecoin.
- **Tokens:** These represent specific assets on a blockchain platform (e.g. ERC-20 tokens on Ethereum).
- **Stablecoins:** Their value is tied to a fiat currency (such as the dollar) to maintain stability.
- **Niche cryptocurrencies:** These include coins with specific functions, such as privacy (Monero) or green energy (Chia).
Remember that the cryptocurrency market is diverse and constantly evolving. Always do your research before investing! 😊