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9 Types of Crypto Assets that all investors should know

Paymium
Paymium

The cryptocurrency exchange of trust for individual and institutional traders and investors.

Cryptocurrencies are digital assets that use cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are based on decentralized systems, which work through distributed ledger technology. Typically: a blockchain serving as a public transaction database.

Behind the term “digital assets” there are different types of coins and tokens, with different purposes and functionalities. For a better understanding, let’s imagine: you are at the ice cream shop and discovering all the flavors...
Let's dive our spoon into the variety of crypto assets!

Coin
Coins are developed on their own blockchain. Mining is crucial to have all transactions verified. We can separate coins based on the bitcoin blockchain from coins based on their own blockchain. Examples: ETH (Ethereum blockchain),....


Stable Coin
Coins which are collateralized to another asset, it can be FIAT money like the U.S. dollar. But it can also be an exchange-traded commodity like Gold. These coins are designed to resist better to the volatility of the price, being stabilized by assets that fluctuate outside of the cryptocurrency space. Example: DAI,...


Privacy Coin
Term to designate the tokens and coins which complies the most with privacy issues. To evaluate whether a token set in the privacy token category we often look to criterias such as: transaction privacy, the balance visibility or the address privacy.
Example: Monero, Zcash, Dash,...


Token
Tokens are different from coins as they are not using their own blockchain and so are not mineable. They can be an asset, a utility or unit of value. Ethereum is the blockchain that hosts the most tokens today.



Toppings on your Token ice cream?


Utility Token
Token are used to finance a project by providing its buyers with a guarantee of being able to access the project’s service/product. A token can be seen as a ticket for an event or a gift-card: it has a unique use and has value only in a certain time and at a certain place. It does not provide any ownership right on the project or the company.
Example: BCIO, BAT, ...



Security Token
It is a token that represents a tradable financial asset (companies shares, bonds, debts,...). They derive their value from an external asset. These tokens are a form of investment. Security tokens are the digital form of the traditional securities and must be registered by an institutions (such as the American SEC or the German BaFin).
Example: Nexo, Blockchain Capital,...



Equity Token
Represents stock or equity in the company that issues it. By purchasing equity tokens you are investing in a company, you own a part of it. All equity tokens are also security tokens.
Example: BFT,...



Payment Token
Tokens with a unique use: to pay for goods and services. Payment tokens are issued in real-time and used online in predefined domains and in payment environments.
Therefore, tokenized payments allows to substitute sensitive data (credit card info) with a token form of money while performing a payment transaction. They make the payment more secure.
Example: POLY,...



Non Fungible Token (NFT)
Special type of token: each unit has unique attributes and characteristics. Their inner value is different for each token and they cannot be divided: you can’t possess 0,24 of a NFT. Comparable to collectibles, such as stamp: they are all the same item and yet some are more valuables than others.
Example: CryptoKitties, Gods Unchained Cards,...






Sum Up:
Such a variety of Tokens is fun and delicious, but don't get fooled! Act smart, stay well informed about the purpose of the coin or token you are buying, ask questions to the team, don't buy too many scoops at the same time, so you don’t get sick.

Paymium
Paymium

The cryptocurrency exchange of trust for individual and institutional traders and investors.

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