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In today’s fast-paced crypto space, many investors and crypto enthusiasts miss the fundamentals behind blockchain tech. You might have heard about Bitcoin first, then Ethereum and Ripple. But what about those tokens that deal with games? The crypto space developed really fast and gave birth to 6 major types of cryptocurrencies. Let’s talk about each crypto type and give examples along the way.

Crypto Type – Explained

1- Large Caps

When we talk about large caps, we are most likely referring to the top 10 cryptocurrencies by market capitalization. Market cap is a way to value a cryptocurrency project and multiplies the price of a token by the total number of available tokens in the market. Some even refer to the top 20 cryptocurrencies as large caps, as their market cap surpasses USD 10 Billion. Those tokens are likely to be less volatile than other tokens, but still more volatile than traditional assets such as equity stocks.

Examples of Large Caps tokens: BTC, ETH, XRP, ADA, BNB, SOL

2- DeFi

Decentralized Finance had a huge effect on the crypto market and played a major role in extending its valuation. DeFi is the application of Finance in the blockchain world. DeFi projects tend to build decentralized exchanges and yield farms. This mimics real-world financial institutions but in a totally automated and decentralized application.

Examples of DeFi tokens: Uniswap, Chainlink, Pancakeswap, 1inch

3- Gaming

The gaming industry had its fair share of centralized entities, benefiting from the entire pool of money. Well, thanks to blockchain, gaming as we know it is starting to change. Many play2earn projects are evolving today and giving more power to the players. Traditional games are centralized, so all items, gears, and character XP gained while playing cannot be used in other games. Crypto gaming aims to allow gamers to benefit from their game holdings n different crypto platforms. Neat!

Examples of Gaming tokens: Enjin, Decentraland, Wink

4- MEMES

Yes, memes are here to stay apparently. Many cryptocurrencies took famous meme mascots and based their cryptocurrencies on them. Memes started as a way of sending jokes to each other, but then became a culture of online sharing. They are mainly community-based and serve as a way of spreading a certain message, such as jokes, culture, habits, and certain online interests.

Examples of MEME tokens: Dogecoin, Shiba Inu, SafeMoon

5- Internet of Things

When we talk about the Internet of Things (IoT), we often refer to grouped hardware using common software. The Internet of things describes physical objects that are embedded with sensors, processing ability, software, and other technologies, and that connect and exchange data with other devices and systems over the Internet or other communications networks. In the crypto sphere, IoT tokens aim to do the same concept in a decentralized way using blockchain technology.

Examples of IoT tokens: IOTA, Digibyte, VeChain

6- Non-Fungible Tokens

Last but definitely not least are NFTs. An NFT is a unique and non-interchangeable unit of data stored on a digital ledger. NFTs associate with easily-reproducible items such as photos, videos, audio, and other types of digital assets. The recent crypto craze was also associated with many NFT projects rising to fame, pushing the entire industry forward.

Examples of NFT tokens: Chiliz, Origin Protocol, Bakery Token

Conclusion

The crypto sphere is filled with interesting projects that are still trying to solidify with each passing day. The above list is not extensive, and many projects tend to mix between 2 categories. For example, Gaming and NFT became a big hit lately. It is always advisable to find an interesting and undervalued project, and invest responsibly after doing extensive research.

Stay Ahead, Stay Informed
Rudy Fares


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