What digital currencies are there?

Digital currency is divided into centralized and decentralized according to the issuance method; divided into blockchain and non-blockchain according to the technical basis; divided into payment type, investment type, stable currency, platform currency and utility type according to the purpose.

Digital currency classification

Digital currency refers to a value storage and exchange medium that exists in digital form. It is different from traditional currency. It is issued and managed by a computer system. Currently, there are a wide variety of digital currencies on the market, which can be divided into the following categories according to different classification standards:

1. Classification by issuance method

• Centralized digital currency: Is issued and managed by a central institution or company, such as Tether (USDT), Binance USD (BUSD).
• Decentralized digital currency: Is issued and managed by a distributed network and is not controlled by any single entity, such as Bitcoin (BTC), Ethereum (ETH).

2. Classification by technical basis

• Blockchain digital currency: Issued based on blockchain technology and has Immutability, decentralization and transparency like Bitcoin, Ethereum.
• Non-blockchain digital currency: Not based on blockchain technology, but use other technologies, such as central servers, distributed ledgers, such as Ripple (XRP), Stellar Lumens (XLM) ).

3. Classification by use

• Payment digital currency: Mainly used for daily payment, it is convenient and low-cost Cost characteristics such as Bitcoin, Litecoin (LTC), Dogecoin (DOGE).
• Investment-type digital currency: Mainly focused on investment and speculation, with large price fluctuations, such as Ethereum, TRON (TRX), and ADA (Cardano).
• Stablecoins: are linked to legal currencies, have stable prices, and are mainly used for value preservation and cross-border payments, such as Tether and USD Coin (USDC).
• Platform currency: Is issued by a specific platform or ecosystem and is used for payment, transaction or participation in governance within the platform, such as BNB (Binance Coin), FTT (FTX Token).
• Practical digital currencies: Have specific functions or uses, such as Filecoin (FIL) for distributed file storage and BAT (Basic Attention Token) for digital advertising.

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