What are the different types of cryptocurrency?

Since Bitcoin’s debut more than a decade ago, many new types of cryptocurrency have emerged. From stablecoins to non-fungible tokens (NFTs) to dog memes, a wide variety of cryptos are available today. What they share in common is the use of the distributed ledger technology known as the blockchain. How Many Cryptocurrencies Are There?

What is a cryptocurrency and how does it work?

A cryptocurrency is a new kind of digital asset that exists on a decentralized network called a blockchain. The term is made up of two constituent parts: “ crypto ” which is a shortened version of the word ‘cryptography,’ and “ currency ” which means a monetary denomination of value or simply ‘money.’

What are payment-type cryptocurrencies?

Payment-type cryptocurrencies are, as the name alludes, crypto assets used to make payments for various goods and services. In essence, all assets can be used as a form of value transfer, but few can be used as money. To qualify as a payment coin or token, an asset needs to portray the following qualities of money:

Are cryptocurrencies securities?

In the past, the Securities and Exchange Commission (SEC) took the stance that Bitcoin and Ethereum were not securities; however, in September 2022, SEC Chair Gary Gensler stated he believes cryptocurrencies are securities. This stance implies that cryptocurrency's legal status may become subject to regulation. 9