Did you know that there are types and classes of Cryptocurrencies?

We have 3 types of Cryptocurrencies

1) COIN: These are Cryptocurrencies that are built on their own blockchain, example: BTC, BNB.

2) TOKEN: These are Cryptocurrencies that are built on another blockchain, meaning they don't have a blockchain in other words they are tenants.

Example: Shiba, Doge, USDT

3) NFT: non Fungible Tokens

CLASSES OF CRYPTOCURRENCIES

We will be focusing on just 7 classes

1. Stable/pegged Cryptocurrency:

These are cryptocurrencies that are pegged(fixed) to a real life commodity like gold, which is called “gold pegged

cryptocurrency”. Also, they can be fixed to a particular

currency(fiat) like the US dollar or any currency, an example of such coin is Tether (USDT), USDC which is fixed to the US dollar.

2. Utility Token/coins: These are cryptocurrencies that are used to finance the network (project) by providing its buyers with a guarantee of being able to consume some of the network's products. In other words, they are used/utilized within the product.

Example, Binance Token (BNB),

3. Royalty Tokens/Coins: These are cryptocurrencies that are used to reward users or a set of individuals, example are Gamefi tokens.

4. Security Tokens/Coins: These are cryptocurrencies that are subjected to federal security regulations.

They are investment contracts that represent legal ownership of a physical or digital asset like real estate. The ownership must be verified within the Blockchain.

5. Inflationary Token/Coins: An inflationary token is a model where new tokens are added to the market over time, often through some regularly-timed model. An example is Doge coin

6. Deflationary Tokens/Coins: Also known as self-destructive currencies refer to crypto assets that tend to reduce in total supply with each transaction based on a pre-established deflation rate using

the blockchain “Burning mechanism:” Example Bomb

7.) Privacy Tokens/Coins:

These are cryptocurrencies that are designed to make it difficult or impossible for a third party to track the flow from

one transaction ends with the other and are used also in private companies. An example is Monero (XML).

N/B: "There are several others classes and very importantly, a Cryptocurrency can fall under more than 3 classes just like BNB."