Decoding Cryptocurrency – Everything You Need to Know About the Different Crypto Types

We take a look at different types of cryptocurrencies and their features. What makes them promising investment opportunities? It is crucial to know different types of crypto coins in order to find the right investment.

Insight Into the Diversity of Cryptocurrency Types

In 2009, the introduction of Bitcoin sparked a sea change in the financial landscape and signaled the beginning of an era of unprecedented exponential growth.

With Bitcoin’s recent surge above $60,000, there is increasing speculation as to whether cryptocurrencies such as Bitcoin and Ethereum may be the future fiat currencies that could replace traditional currencies.

While Bitcoin is often the focus, there are numerous alternative cryptocurrencies on the market, commonly known as “altcoins.” This post will provide you with an overview of the different types of cryptocurrencies to invest in and their features. We will also give a brief introduction to the currently most promising crypto projects.

Why so many different types?

The diversity of cryptocurrency types results from the open-source nature of blockchain technology, which allows any software developer to use the original code and innovate based on it.

There are currently over 2.4 million cryptocurrencies and the number is constantly growing. A few years ago there were only around 1,000 different cryptocurrencies, which illustrates the rapid development.

The crypto world continues to expand due to the difference between coins and tokens. While coins like Bitcoin, introduced in 2009, operate on their own blockchain networks, tokens use the infrastructure of existing blockchains.

The introduction of Litecoin in 2011, which aimed to reduce block formation time and enable faster transactions, marks another step in this evolution. Crypto forecasts for the next few years show that the hype around coins will never end.

How many types of cryptocurrencies are there on the market?

According to CoinmarketCap, there are over 2.4 million different cryptocurrency projects with a total market capitalization of $2.3 trillion. This diversity reflects the rapid development and diversification of the crypto industry. This is evolving from a single sector of the blockchain into a comprehensive ecosystem of digital currencies and complex smart contracts.

The growth was heavily influenced by the emergence of altcoins as well as the innovation of Ethereum. The latter established the concept that blockchain can enable more than simple transactions.

This expansion accelerated, particularly during the 2020-2021 bull market. However, it was revealed that around 60% of bullrun cryptos failed, highlighting the volatility and experimental nature of this area.

Problems lead to new innovations

Additionally, the Ethereum network encountered issues such as scalability and high transaction fees. This led to the emergence of new blockchains such as Solana, Polygon, and Cardano that seek to solve these problems with faster transaction speeds and lower costs.

For example, coins on Solana can process an impressive 45,000 transactions per second (TPS), while Polygon can process 65,000 TPS, which far exceeds Ethereum’s 20 TPS.

This competitive yet collaborative ecosystem, strengthened by open-source contributions, emphasizes the dynamic nature of the crypto world. It drives innovation and ensures the continuous evolution of blockchain technology.

Understanding Cryptocurrencies

Here are some basic concepts that can help you develop a better understanding of cryptocurrencies. They help lay a solid foundation for your investments in coin launches.

What are cryptocurrencies?

Cryptocurrencies are based on encryption technology and use decentralized ledgers such as blockchain to enable global transactions transparently, securely, and without central authorities.

Well-known cryptocurrencies such as Bitcoin and Ethereum use their own tokens within the blockchain network to conduct transactions and generate value. These tokens have their value due to their wide acceptance and serve as a means of trading and investing to make money from crypto.

A “virtual currency” is a secure digital currency that is based on encryption technology. These digital coins are often created by teams that favor decentralized systems and aim to give users more control, thereby transforming finance.

Buying cryptocurrencies offers new ways to secure transactions, protect assets, and manage money and finances.

Difference between coins and tokens

Coins are independent digital currencies that exist on their own blockchain networks. They facilitate transactions within decentralized networks and serve as digital money that stores value. 

Coins are essential parts of blockchain operations and enable users to, among other things, conduct transactions using crypto apps, secure the network and, if necessary, participate in the governance process.

In contrast, tokens are digital assets that exist on existing blockchain networks and typically represent specific assets or grant permissions for specific services or features. 

For example, tokens issued via ICOs can represent ownership of blockchain projects, while utility tokens such as Storj or Namecoin offer services such as file sharing or domain name services. Numerous tokens are currently built and active on the Ethereum network.

New Types of Cryptocurrencies With Potential in 2024

With over 2.4 million active cryptocurrencies in 2024, choosing the right cryptocurrencies with a future is relatively difficult.

Some established coins have hardly seen any significant increases in value in recent years. This is largely due to market saturation. However, to make profits from your investments, you need to look deeper.

That’s why we would like to present you with some recommendations for cheap cryptocurrencies with great potential below. These crypto tokens offer diverse use cases and therefore have a promising future.

• Dogeverse – With its unique infrastructure, the new multi-chain coin Dogeverse offers optimal interoperability between different blockchains. The presale is already in full swing.
• Mega Dice Token – The future of GameFi Casino. $DICE combines crypto coin & gaming in one revolutionary platform. With exclusive NFTs, daily staking rewards & over 4,000 games, it offers an unparalleled gaming experience.
• 99Bitcoins – Learn & earn with this innovative Learn-2-Earn platform. On the BRC-20 blockchain, 99Bitcoins offers exciting rewards like airdrops and enables participants to become crypto experts. Also includes top staking options.
• 5thScape – An exciting crypto project taking over the gaming world. With an innovative combination of virtual reality and crypto, 5thScape offers a unique investment opportunity.

What sets these coins apart and why are they even worth recommending? We provide insight into each of these tokens and explain why they could be the next 1000x cryptocurrencies.

Number 1: Dogeverse – First Multi-chain Dogecoin

Dogeverse is currently the most interesting dog meme coin with enormous potential for an explosive rise this year. The current presale has already raised an impressive $9.9 million, showing clear interest from investors. And the Dogeverse forecast also looks very promising.

Dogeverse’s multi-chain infrastructure offers investors a variety of options. Currently, purchasing and claiming the token is possible across the Binance, Ethereum, and Polygon chains, while support is planned for Avalanche, Coinbase, and Solana. 

This multi-chain functionality guarantees widespread acceptance of the token and therefore a high probability of viral growth.

Additionally, $DOGEVERSE holders can stake their tokens and earn passive staking rewards of up to 600,000% APY. Dogeverse has a total token supply of 200 billion tokens, with 25% (30 billion) reserved for presale and 10% (20 billion) for staking rewards. Investors should therefore take advantage of the opportunity to get involved early, before the token launches on the stock exchanges.

Number 2: Mega Dice Token – The Newest Casino Crypto Token

Mega Dice is a popular crypto casino with an active user base of over 50,000 and a monthly betting volume of more than $50 million. Thanks to the Solana blockchain, Mega Dice has the potential to become the next big crypto casino.

The team behind the casino has now launched a new type of cryptocurrency to reward early supporters and active casino users. Anyone who stakes $DICE will receive profit shares based on casino performance as well as the chance to win a unique NFT with special privileges and rewards.

In addition, investors who refer their friends to the token presale will receive 10% of the invested amount without any limit. Additionally, there will be an airdrop of over $2.2 million in three phases for users who stake at least $5,000 within 21 days.

On the first day after the ICO launch, over $300,000 was raised, indicating strong interest from investors. The attractive rewards for $DICE buyers make this token one of the most promising new cryptocurrencies for this year.

Number 3: 99Bitcoins – Learn-2-Trade, Staking & Airdrop

The 99Bitcoin platform has always been known as a trading & knowledge base. The brand new $99BTC token offers rewards to its already enormous crypto community and is based on the Ethereum blockchain. $99BTC can be purchased with ETH, BNB, or USDT. Later this year, the token will also be compatible with the BRC-20 standard on the Bitcoin blockchain.

Early investors who purchase $99BTC tokens during the current presale can benefit from a generous staking APY of over 119,000%. This APY will decrease as the number of tokens staked increases, so it is recommended to stake as early as possible.

Additionally, early investors will be rewarded with a $99,999 cryptocurrency airdrop worth $99BTC tokens. This reward will be given to 99 selected members of the community.

Number 4: 5thScape – Virtual Reality as a Future Project

5th Scape stands out as a pioneering player in online VR and AR gaming as well as in the crypto space and is one of the most promising new types of cryptocurrency in 2024.

The tokenized platform gives its token holders free access to games, streaming services, and other useful features. Currently, 5SCAPE is targeting $15 million in funding across 8 phases, with more than $5.7 million already raised.

Both holders and developers benefit from tokenized benefits, including free access to digital products, discounts on all offers, and the possibility of 5SCAPE transactions within the ecosystem.

In addition, 5th Scape will launch several games such as MMA Cage Conquest and Epic Cricket Arena on its established gaming platform, which is reflected in a positive 5th Scape forecast.

What are Altcoins?

Altcoins include all cryptocurrencies except Bitcoin. Even Ethereum is still considered an altcoin despite being the second-largest crypto project by market capitalization.

Today’s diverse crypto landscape offers a wide range of Bitcoin alternatives and tokens, each offering a variety of use cases beyond simple means of exchange. Ethereum leads the altcoin space and acts as a computer network for decentralized applications and smart contracts.

Other notable altcoins such as Solana (SOL) and Cardano (ADA) are gaining traction as potential Ethereum competitors, demonstrating the expanded utility and diversity of altcoins that go beyond Bitcoin’s original concept as a decentralized currency.

Crypto Tokens at a Glance

Crypto tokens are broadly divided into two types: utility tokens and security tokens. These tokens offer different functions in the cryptocurrency space and are subject to different regulatory frameworks for digital assets.

Utility tokens

Utility tokens are digital currencies that offer users access to specific products or services within the blockchain ecosystem. They are intended to facilitate interaction within decentralized networks and give holders the ability to perform certain tasks or receive certain benefits within the platform.

These tokens are not used for investment purposes, but rather as tools to use certain platform functions. Therefore, the value of the token is directly related to the demand for services or products provided within the ecosystem.

Security tokens

In contrast, security tokens represent actual assets or company shares, similar to traditional securities. Security Tokens are subject to securities regulations and must comply with applicable laws and regulations governing the issuance and trading of securities, including compliance with regulations such as Know Your Customer (KYC) and Anti-Money Laundering (AML).

These types of tokens are similar in functionality to traditional stocks or bonds in that investors expect a return on their investment, such as dividends, profit sharing, or capital appreciation.

Are stablecoins considered tokens?

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