The best way to diversify your portfolio is to have different categories of Cryptocurrencies.
Everyone has different ways of customising their portfolio,this seems to be the safest way.
The classification of cryptocurrencies is diverse and comes handy in solving a lot of problems the tech world is facing.
Also Read: What are the best crypto websites, channels, and Twitter accounts to follow?
Here I’ll discuss about most popular Cryptocurrencies of different categories:
- Binance Coin ($73 Billion market cap) : Exchange-based Tokens
The cryptocurrency exchange tokens are digital assets that are native to a cryptocurrency exchange. They’ve Important use cases,such as: 1) Enhanced liquidity
2) Governance
3)Fee discounts(Use case? Yes maybe)
Binance is the most popular and most used Centralised Crypto exchange platform.
- Uniswap ($14 Billion) : Decentralized finance
DeFi applications aim to recreate traditional financial systems, such as banks and exchanges, with cryptocurrency. Almost all of them use the Ethereum blockchain. - Tether ($67 Billion) :Stablecoins
The term ‘stablecoin’ refers to cryptocurrency whose market value is tied to some external measure. Tether is backed by USDT. - Monero ($5,2 Billion):Privacy.
By default, privacy coins are equal and fungible. The participants’ identities and transaction amounts are obscured despite using a public blockchain network. Transferring funds becomes untraceable, ensuring that no coin becomes “tainted” by history. Darknet lurkers have always been up with this.Monero is the biggest of it. - Aave ($5 Billion):Lending/Borrowing:
Using DeFi protocols, such as Aave and Maker, users who wish to become lenders need to fund a “money market.” This is accomplished by sending the coins to a smart contract, which serves as an automated intermediary, allowing users to borrow the coins.. - VeChain ($9.1 Billion): Internet of Things
VeChain is an enterprise blockchain platform that aims to provide a full view of an organization by disintermediating information from data silos. VeChain also plans to become a leading platform for initial coin offerings (ICOs) and for conducting transactions between Internet of Things (IoT) connected devices.
- Dogecoin ($37 Billion):Meme Coins
Meme coins are cryptocurrencies that have gained popularity in a short amount of time, usually as a result of influencers and retail investors promoting them online. In 2013, a meme coin called Dogecoin was created as a joke based on a meme. - Theta Network ($8.5 Billion): NFTs
By reducing streaming-related costs, Theta aiming to accelerate the development of fully decentralized content delivery platforms, while simultaneously serving giants such as YouTube, Twitch, and Netflix.In addition, Theta’s 3.0 mainnet launch also advances plans for expansion of the ThetaDrop NFT market, which may help Theta gain market share in the booming industry.
- Axie Infinity ($4.4 Billion): Gaming
Axie infinity runs on NFTs and has hit all time highs in sales,this project indeed looks promising. - Uniswap ($14 Billion): Governance Coin
Decentralized trading platform Uniswap has launched a governance token, UNI, minting 1 billion coins to be released to the public over the next four years.
