Going through crypto categories is the first step to take when developing your cryptocurrency investment portfolio. Here are some of the most popular top cryptocurrency categories and the leading cryptos in each space. Remember that these are just a few examples of many categories in the exciting cryptocurrency world. Also, other people may categorize these cryptos differently. You can explore more about cryptocurrency categories in my book, Cryptocurrency Investing for Dummies.
Five Top Cryptocurrency Categories For Your Investment Portfolio
1. Payment Cryptos
This is by far the biggest of the top cryptocurrency categories in terms of total market cap. In this group, we can find cryptocurrencies that mainly aim to be used as a store of value, transaction, and payments. You soon may be able to use them like fiat currencies such as the US dollar. Examples of Cryptocurrencies which fall in this category include:
With Bitcoin as the pioneer, there is no wonder this is the most popular of all top cryptocurrency categories. But the blockchain technology can be applied to so much more than just payment system… So be on a watch out for the next big thing within other hot categories!
2. Privacy Cryptos
These are the cryptocurrencies that are heavily focused towards transaction security and anonymity. A LOT more than those in the payment category. In fact, it’s a common misconception that Bitcoin and other cryptocurrencies in the payment category are fully anonymous and untraceable. Many blockchains only disguise users’ identities while leaving behind a public record of all transactions that have occurred on the blockchain. The data in the ledger often includes how many tokens a user has received or sent in historical transactions. It also has the balance of any cryptocurrency that they have within their wallet.
