Understanding Different Types of Crypto Assets

1. UNDERSTANDING DIFFERENT TYPES OF CRYPTO ASSETS Many use cases have arisen from blockchain technology and subsequently, many different types of crypto assets have emerged. These digital assets can be classified into three main categories. Moonrig.io is the leading crypto portfolio management software and we are here to help investors assess which assets are best suited to their needs. Let's get started!

2. Currency Coins Currency coins are the original type of crypto asset and were intended to serve as digital alternatives to fiat currencies in terms of usage for payments. Bitcoin is the most popular example of a currency coin, where miners generate new BTC tokens by solving cryptographic puzzles. A store of value is another use of a currency coin, allowing users to invest and save digital wealth for long-term considerations. Utility Tokens Utility tokens are created to be used as a form of payment within a specific blockchain-based ecosystem, such as an online gaming platform or decentralized application (dApp). These tokens have certain properties that allow them to serve a purpose on the associated network and sometimes have built-in features like governance rights. Many utility tokens are used as a medium of exchange on their respective platforms.

3. Security Tokens Security tokens are crypto assets that represent a real-world asset, such as a share in a company or real estate. They are subject to legal requirements and must adhere to certain regulations depending on the jurisdiction. Tokenizing assets provides liquidity to traditionally illiquid markets and allows users to trade fractional shares in assets that were previously unavailable. Stablecoins Stablecoins are a type of crypto asset that has been gaining ground in recent years. They are designed to have their value remain stable, often by pegging them to fiat currencies such as the US dollar or euro. This makes them useful for payments and transfers, as well as hedging against volatility in other cryptocurrency markets.

4. NFTs (Non-Fungible Tokens) NFTs are a form of crypto asset that represent digital items such as artwork, collectibles and game items. These tokens are unique in that they cannot be exchanged for another token with the same value, as is the case with fungible tokens such as BTC and ETH. NFTs are gaining traction in the gaming and digital art worlds, allowing users to tokenize their artwork or game items and trade them on various marketplaces. Final Thoughts No matter which type of combination of crypto assets is chosen, investors should consider utilizing Moonrig's free crypto portfolio tracker. By using Moonrig, investors can make informed decisions as the ability to monitor crypto in real-time is a key component of any successful investment strategy. Get in touch with us www.moonrig.io 08 9WC 523, Dubai Airport Freezone reach@moonrig.io Folows US moonrig.io/ moonrig.io/ moonrig.io/