When the cryptocurrency market started, it was not worth a lot, and there were only a few cryptocurrencies in the market. Cryptocurrency was established to act as a faster and cheaper alternative to the US dollar for people who wanted to make cross-border transactions.
However, there were not many investors and traders in the market in the beginning. However, in recent years, especially 2021, cryptocurrency gained a lot of popularity, and more people started investing and trading.
As of the end of last year, the cryptocurrency market was worth around $3,048 billion. There has also been an increase of cryptocurrencies, approximately 1,500, with Bitcoin being the strongest and most popular.
Cryptocurrency can be classified into categories like NFT, yield farming tokens, store of value tokens, and DeFi. However, based on utility, cryptocurrency falls into the following categories:
Bitcoin, the world’s initial cryptocurrency, was created to be a currency to make cross-border transactions faster and cheaper than when doing them with the US dollar.
In 2009, one bitcoin was equal to approximately $1, but with the increasing popularity, its value has increased to approximately $48,000. With the increased value, Bitcoin has proven to be a store of value.
To keep up with the current Bitcoin or other cryptocurrencies, you can use online platforms like https://www.okx.com/vi/markets/prices. Recently, many countries have started recognizing Bitcoin as a currency, and many organizations have started accepting it as a means of payment.
Stablecoins are categorized as assets because their value comes from external assets’ value. USDT, for example, gets its value from the United States dollar, and Gold DLC derives its value from gold.
In the past, if investors wanted to exit a cryptocurrency, they would replace it with another cryptocurrency or fiat currency. However, nowadays, they remain in the crypto market because there are stablecoins, and they can exchange their cryptocurrency with more stable cryptocurrency as they weigh other options.
Objects were developed to help finance ventures aimed at solving current and future world problems. Siacon, for example, targets to solve the issue of expensive cloud storage. According to their website, Siacon is the number one decentralized cloud storage platform.
Without servers, signups, and third parties, this cryptocurrency uses blockchain technology to develop a data storage marketplace said to be more affordable and secure than traditional storage providers.
Decentraland is another Ethereum-based example that allows users to buy NFT-based virtual land using MANA, its cryptocurrency.
Terra is also working to become a stablecoin to bring decentralized finance access and provide e-commerce payments to local people. Many traders and investors believe that objects are the cryptocurrency market’s future.
Joke coin or meme
These were developed without any specific goal, yet they are worth millions. For example, Donelon Mars (ELON) was developed to enable InterPlanetary Money Transactions. As of late last year, it had a market capitalization of over $500 million.
According to experts, these coins have no specific goal and are speculative assets that work on the idea of community-based pumped-up trading.
Experts advise beginner and serious investors to refrain from engaging with these coins as their value could drop to zero within no time, like what happened to Squid crypto, whose owner disappeared with millions of investors’ money.
Some, however, have remained strong over time, and others like Shiba Inu and Dogecoin that began as meme coins, are now in the race with bitcoin to become the strongest crypto.