The Digital Asset Classification Standard: Know Your Different Crypto Projects

Updated:

Checkmark

Invest at least $250 in D2T to gain lifetime access to our VIP Signals

Checkmark

Get early access to Dash 2 Trade’s Presale. Buy the D2T token now

Checkmark

Existing community of 70,000+ traders

Checkmark

Unlocks access to the leading crypto trading analysis, signals and trading tools

Checkmark

As featured in CryptoNews.com, FXEmpire.com, FXStreet.com and more

Checkmark

World class development team backed by Quant developers and VC investors


Knowing the various classes of crypto assets can help you avoid holding several assets that behave similarly under specific circumstances and have similar attributes.

Highlighted below are some of the common cryptocurrency groups you should know about, according to the Digital Asset Classification Standard put together by CoinDesk.

Crypto Categories

Cryptocurrencies

These are digital money systems based on private blockchains. The most well-known cryptocurrency is Bitcoin (BTC), which is a class unto itself. Litecoin (LTC), Monero (XMR), and Bitcoin clones like Bitcoin Cash (BCH) and Dogecoin (DOGE) are some examples of altcoins (or alternatives to Bitcoin).

Smart Contract Platforms

These are the “Layer 1” or foundational blockchain operating systems, which serve as a host for other cryptocurrency applications to be built on. With its ERC-20 standard, Ethereum is the market leader in this niche, but there are several others, including Cardano (ADA), BNB Chain (BNB), and Solana (SOL).

DeFi

One of the most effective applications of blockchain technology is decentralized finance (DeFi). The majority of DeFi initiatives, such as Uniswap (UNI), Aave (AAVE), Compound (COMP), Yearn Finance (YFI), and Balancer (BAL), produce their own tokens.

Stablecoins

These are digital tokens whose value is fixed to a fiat currency, typically the US dollar, commodities, such as gold, or other tangible assets. Stablecoins serve as bridges between the crypto and traditional economies and provide secure storage for cryptocurrency investors’ funds.

Non-fungible Tokens (NFTs)

These investments typically reflect something irreplaceable and have a unique worth. The replacement of your Bitcoin with another would not bother you, but each NFT has a unique identity and selling price. NFTs can represent actual or digital products like luxury items, works of art, or intellectual property.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.