Thread by @cryptobafemi

𝗧𝘆𝗽𝗲𝘀 𝗮𝗻𝗱 𝗖𝗹𝗮𝘀𝘀𝗲𝘀 𝗼𝗳 𝗖𝗿𝘆𝗽𝘁𝗼 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀 - A Thread🧵

We have 8,000+ cryptos but are they the same?

Today I will be putting you through the main 𝘁𝘆𝗽𝗲𝘀 of #Cryptos and how they are 𝗰𝗹𝗮𝘀𝘀𝗶𝗳𝗶𝗲𝗱;

Let's go!👇👇👇

KINDLY RETWEET!!!

𝗧𝘆𝗽𝗲𝘀 𝗼𝗳 𝗖𝗿𝘆𝗽𝘁𝗼 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀
- Broadly speaking, there are 2 types of cryptocurrencies namely Coins and Tokens.

Coins: These belong to cryptocurrency networks that were built from the ground

i.e someone spent a lot of time and a lot of money putting together the code required to create a safe and reliable cryptocurrency network.
Because cryptocurrency networks are so hard to make from scratch, only a few dozen cryptocurrencies are actually coins, the rest are tokens

Example of Coins are #Bitcoin and #Ethereum.

- Tokens: on the other hand are easy to make and can be created in a matter of minutes with little to no effort. This is why there are tens of thousands of tokens.

-Tokens are more of digital assets than digital currencies.

Examples of tokens are Shiba Inu, Pitbull & NFTs.

𝗖𝗼𝗶𝗻𝘀 𝘃𝘀 𝗧𝗼𝗸𝗲𝗻𝘀: 𝗧𝗵𝗲 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲

1. A coin usually is native to a blockchain and is used to trade currency and store value. A token is pretty similar, but it tends to use another coin's blockchain.

Consider, for instance, Ethereum, a blockchain. Its local coin is Ether. Be that as it may, a few different tokens like BAT and Loopring work on this blockchain.

2. Coins represent a medium of exchange whereas tokens are seen as assets. The tokens can be held for value, or traded and staked to earn interest.

3. Crypto coin transactions are registered on the blockchain whereas tokens transacted are handled by smart contracts.

- Example of smart contracts are Binance Smartchain (bep20) and Ethereum chain (erc20).

In addition to the above, tokens are transferred when a transaction occurs but coins stay on the blockchain..

𝗖𝗹𝗮𝘀𝘀𝗲𝘀 𝗼𝗳 𝗖𝗿𝘆𝗽𝘁𝗼 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀:
a. Store of Value Cryptos.
b. Oracle Cryptocurrencies.
c. Payment Cryptos.
d. Privacy Cryptos.
e. Smart contract Cryptos.
f. Meme Coins.
g. Stable coins.
h. Exchange Cryptocurrencies

A. Store of Value Cryptos: For a cryptocurrency to be considered store of value, it should have its value either stable or increase over time but never decreasing. An example is #Bitcoin

B. An oracle Crypto: sends data from the outside world to a blockchain so specific data, like temperature, can execute the disbursement of money. An example is Chain link.

C. Payment: These are Cryptocurrencies whose main purpose is payment. Despite many pretenders to the crown, Bitcoin is still the most used cryptocurrency p2p payments. Altcoins like #Doge and NANO have good reason to claim a better user experience but their value is unproven and

they will need to be spectacularly good over the course of the next few years to overtake Bitcoin.

D. Privacy Cryptos: Like I said in the previous thread, all crypto transactions are made visible to the members on the network in a blockchain.

But then these types of #cryptocurrencies obscure transactions on their blockchain to maintain the anonymity of its users and their

activity. An example is Monero (XMR).

E. Smart contract Cryptos: Smart contract Cryptos are designed to be programmable instead of being a store of value. They can be used to create different tokens and even non-fungible tokens (NFTs). Examples are Ethereum and Solana.

F. Meme coins: Coins created as joke with no real use. While some might say #Doge is a better payment option because of its speed of initiating transactions, it's initial use was a joke since it was named after a dog on the internet.

G. Stable Coins: From the name, stable. These are coins that are pegged 1 one 1 to the dollar. It's value is the same as the US dollar. Examples are USDC, BUSD and USDT (Tether).

H. Exchange Cryptocurrencies: Simply put, these are Cryptocurrencies that are owned and operated by the cryptocurrency exchanges. You can think of exchange tokens as a combination of membership subscription and a company's stock. An example is @binance 's #BNB coin.

To interact with #Cryptocurrencies, you'll need two things; a wallet and an exchange.

The most popular wallets are Trust wallet and Metamask.

The most popular exchange is Binance.

I'll be putting you through what wallets and exchanges are in my next thread.

For now you can register a Binance account here ⤵️
accounts.binance.com/en/register?re…

Don't know anything about #Crypto ?

My first ever thread put you through

Enjoy 💯👇👇

https://twitter.com/cryptobafemi/status/1514907576282005507?t=W6qmq5HbWysqOmRyBYqAMQ&s=19

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Share with your friends and give them investor vibes😎😎👇👇

https://twitter.com/cryptobafemi/status/1520484843431374849?t=W6qmq5HbWysqOmRyBYqAMQ&s=19