Types of Crypto Assets
Cryptocurrency- Cryptocurrency (or virtual currency) is likely the most well-known type of
crypto asset. Cryptocurrency is a digital currency or medium of exchange. It can be used:
•To exchange for products or services, like fiat currency (such as Canadian dollars or US
dollars)
•For speculative purposes, such as trading on a crypto asset trading platform.
•As a store of value
Example- Bitcoin(BTC), Polkadot(DOT), Solana(SOL)
Non-Fungible Tokens- Non-fungible tokens (NFTs) are tokens that exist on a distributed
ledger or blockchain, which record ownership of a unique tangible or intangible object –
such as a song, a digital image, a video, designer clothing, etc. Non-fungible means these
tokens cannot be exchanged for one another; each one is unique.
Example- BAYC(Bored Ape), Cryptopunk
Utility Tokens- A utility token uses a distributed ledger or blockchain platform to provide
access rights to a specific product or service, or to be used to purchase specific products or
services. The provider of the products or services typically issues the tokens, which can
only be used within the issuer’s network.
Example- MANA(Decentraland).
Stablecoin- A stablecoin is a type of cryptocurrency whose value is pegged to another
asset class, such as a fiat currency or gold, to stabilize its price. Stablecoins try to tackle
price fluctuations by tying the value of cryptocurrencies to other more stable assets –
usually fiat currencies. Fiat is the government-issued currency we're all used to using on a
day-to-day basis, such as dollars or euros.
Example- USDC, BUSD