Classifications of cryptocurrencies for beginners
Cryptocurrencies can be seen as several different forms of investment and as store of value. Before you go trading, you must familiarize yourself with crypto’s possibilities.
Means of payment
Bitcoin was the first cryptocurrency and as a digital currency was supposed to revolutionize classic payments. But there is still room for improvement in technology and Bitcoin price. Due to this fact, otherAltcoinswere developed that have fewer vulnerabilities. If you want to invest in a Altcoin , which serves as a means of payment, then you must inevitably compare it with Bitcoin.
Examples: Monero ,Litecoin , ZCash
You can look at the platforms as a kind of programming language. It allows companies to develop their own Altcoin without having to have their own blockchain . These digital assets simply use the existing source code and blockchain of an established platform.
Examples: Ethereum , NEO
These cryptocurrencies are applications that have been developed on the platforms. The coins are not meant as means of payment. They are a kind of token that allows the owner to take action in the digital asset. Sometimes this action consists of transferring data or concluding contracts. The possibilities of giving value to the token are almost infinite.
As a beginner, you usually do not have an infinite amount of time to invest in the subject of cryptocurrencies. That’s why you should set up a long-term investment that you do not have to keep in mind 24 hours a day.
The effort for implementation of any cryptocurrency strategy should be as low as possible. A smart strategy will always require your cooperation and your thinking. But I can give you some tips so you do not have to worry about it.
The long-term strategy is HODL in the crypto community.
This term will meet you again and again and it was born from a typing error. The story is pretty funny.
In short: someone gets upset that he is totally bad in trading and always wrong. He decides in his rage to keep the crypto currencies simple (to hold). He prescribes himself and exchanges “l” and “d”. Hodl (ing) became the term describing the overcoming of course crashes of Bitcoin.