How many types of Cryptocurrencies are out there ?

🌀 Need to know about coins you are trading! Crypto Asset Categories 🌀

Crypto Assets can (mostly) be divided into 5 categories based on the types of networks on which they're used.

1.) Currency Tokens

Currency tokens are native blockchain assets intended to be used as money. Networks classified as currencies typically do not have many ‘features' beyond those necessary to define and transfer the native blockchain asset. Like: Bitcoin, Litecoin, Ripple, Zcash, Doge and many others.

2.) Platform Tokens

Platform tokens are required to use general purpose decentralized networks that support a wide variety of possible applications. Platform tokens are often used specifically to mediate use of the platform (ie, tokens are used to pay‘gas in order to access the platform’s functionality). Like: Ethereum, Ethereum Classic, Iota, EOS, Neo, Tron and many more.

3.) Utility Tokens

Utility tokens are native to decentralized networks that are designed for specific application types. That is, they are open networks but designed with a specific use-case in mind. For example, decentralized storage and decentralized asset exchange are both use-types for which targeted networks (and their corresponding tokens) are being built. The terms 'Utility Tokens' and 'Protocol Tokens' are often used to describe the same type of token. Like: Siacoin, Golem, 0x, Polymath, etc

4.) Brand Tokens

Brand tokens exist as tradeable digital assets for use mostly on one company/entity’s platform. Some Brand Tokens may evolve into more generalized Utility Tokens over time. Like: Binance Coin, BAT, Steem, Ark, KMD, etc.

5.) Security Tokens

Security tokens represent a claim on a specific cash-flow, or off-chain asset. Networks which generate fees-for-service that accrue to token holders, explicitly grant voting rights to token holders, or where tokens are said the be“backed by a some other asset, such as gold or company equity, are Security Tokens. Like: KuCoin Shares, DigixDAO, NEXO.