Different Types of Altcoins!

Altcoins is a familiar term to us. Because we see thousands of coins in the market. Altcoins include all types of coins except Bitcoin and, according to many, Bitcoin and Ethereum. For example, with steem or TRX, Tron, all the points we see in the market except bitcoin are all altcoins. I discussed about this some time ago. Today I will discuss with you about different types of Altcoins. So let's discuss:

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Stablecoin:

As we know, cryptocurrencies are still relatively new so their prices are volatile. Due to these unstable prices, many people face great hardships. Because it puts many people's invested money at risk. So these types of coins are created to keep investors money stable and protect them from major risks. The goal of creating these coins is to reduce this overall volatility by fixing the price to a basket of commodities, such as fiat currencies, precious metals or other cryptocurrencies. Investors can maintain their balance in this way if cryptos become unstable. The prices of which do not fluctuate but are fixed at a fixed price. Notable stablecoins include Tether's USDT, MakerDAO's DAI, and USD Coin (USDC).

Security Token:

One type of altcoin we see in the market is a tokenized asset called Security Token. The term tokenization is currently quite popular and refers to the transfer of value from an asset to a token, which is then made available to investors. But one thing is that any asset can be tokenized. For example, real estate or stocks are usually tokenized. One of the reasons for doing this is to work and protect assets. But the most important thing here is that such security tokens are regulated by the US Securities and Exchange Commission.

Utility Token:

Such tokens are typically used to provide services within a network. Such tokens are designed to be used to purchase services, pay network fees or redeem rewards. which is used to purchase storage space on a network and secure data. The ether we see $ETH is a utility token. Many of us know that we can pay for transactions through this coin. We can buy and sell such utility tokens on exchanges. We can even keep them in our wallet if we want. But they are used in the blockchain network to keep it functional.

Meme Coin:

These types of coins are very popular nowadays and are profitable or risky. Such tokens are known to be quite volatile. The price of such tokens can go up and down very suddenly. So while such tokens are profitable, many are risky and they were named as a bit of a joke.

Governance Token:

A governance token is a type of token that typically allows holders certain rights within a blockchain. Such typically have the advantage of voting for changes to the protocol or having a say in the decisions of a decentralized autonomous organization (DAO) where stakeholders can vote together. They are sometimes referred to as utility tokens but have been adopted as a separate type due to their purpose.