The Common Types of Crypto
While there are thousands of different cryptocurrencies (often called tokens or altcoins), they generally fall into a few primary categories:
Store of Value (e.g., Bitcoin): The original cryptocurrency. Because its supply is strictly capped, many people view it as "digital gold"—a safe place to store wealth over time.
Programmable Networks (e.g., Ethereum): These aren't just currencies; they are massive digital playgrounds. Ethereum allows developers to build software apps directly onto the blockchain, using its currency (Ether) to power them.
Stablecoins (e.g., USDC, USDT): Cryptocurrencies pegged directly to real-world assets like the US Dollar. They give you the speed of crypto without the wild price swings.How It Works: The Blockchain
Traditional money relies on a bank to keep track of who owns what. If you send money to someone, the bank updates its private ledger.
Cryptocurrency throws out the bank entirely. Instead, it uses a blockchain. Imagine a global ledger that thousands of independent computers around the world share and update simultaneously.
While there are thousands of different cryptocurrencies (often called tokens or altcoins), they generally fall into a few primary categories:
Store of Value (e.g., Bitcoin): The original cryptocurrency. Because its supply is strictly capped, many people view it as "digital gold"—a safe place to store wealth over time.
Programmable Networks (e.g., Ethereum): These aren't just currencies; they are massive digital playgrounds. Ethereum allows developers to build software apps directly onto the blockchain, using its currency (Ether) to power them.
Stablecoins (e.g., USDC, USDT): Cryptocurrencies pegged directly to real-world assets like the US Dollar. They give you the speed of crypto without the wild price swings.How It Works: The Blockchain
Traditional money relies on a bank to keep track of who owns what. If you send money to someone, the bank updates its private ledger.
Cryptocurrency throws out the bank entirely. Instead, it uses a blockchain. Imagine a global ledger that thousands of independent computers around the world share and update simultaneously.
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