When you think of cryptocurrency, what springs to mind for you? For a lot of us, cryptocurrency conjures up images of Bitcoin and Ether, which are quite ‘traditional’ cryptos in every sense of the word. But as we know, the crypto industry is nothing if not dynamic and all sorts of tokens exist for consumers.
If you planning to get started with crypto (or are already on your crypto journey), you should know about the many options in the market. From the creative to the controversial to the downright bizarre, here are some of the unique types of crypto you should know about.
AI Crypto
AI is probably the most trendy technology these days, so it comes as no surprise that cryptocurrency has found itself in the mix with the creation of AI cryptos. These tokens are those that incorporate AI technology into their processes or whose underlying blockchain project leverages AI.
If you look into AI crypto, you’ll see a plethora of these applications. Some blockchains have AI systems integrated into them to detect fraudulent transactions and some projects offer AI-infused experiences such as metaverses to users. Either way, AI is used to deliver a better experience to users and as time goes on, we can expect AI crypto to be a constant feature within the industry.
As Kane Pepi says, “The AI crypto industry is still nascent, and as such, we can expect many more innovative products to come out in the near future – fueled by the success of projects such as Fetch.ai and SingularityNET”.
Meme Tokens
This is perhaps one of the more entertaining types of cryptos. If you’re on the internet, then you know all about memes and how they bring people together. But did you know that there are cryptos based on memes? There is Dogecoin, which is based on the Shiba Inu dog meme, as well as SHIBA, BONK, and several other tokens. There is also the PEPE token, based on the Pepe the Frog meme.
Honestly, for every popular meme online, there is probably at least one token based on it. And these tokens are doing quite well. Dogecoin, for example, has a market cap of over $24 billion. For any lover of memes, there will be many options in the market to invest in.
Privacy Tokens
One of the reasons why people love using cryptocurrency is because transactions completed on a blockchain can be done with more control and privacy than with fiat currency. Nothing quite exemplifies that like privacy cryptos.
Typically, crypto transactions are recorded on a public blockchain and can be viewed by anyone, even if the identity of the user is kept secret. Privacy tokens go a step further as these transactions cannot be viewed or traced by anyone. Naturally, they are the go-to option for crypto users who want maximum privacy.
They have also been quite controversial as some have been used for crime in the past and some users believe they are too much of a risk.
Gaming Tokens
Blockchain has been used in the gaming space for years now and this has given rise to a class of tokens used just for gaming. If you take a look at the average blockchain gaming project, you’ll probably come across its native token. These tokens can be used to buy in-game items, upgrade characters, engage with other users, staked, and so on.
One thing that is also very unique about these tokens is that they typically cannot be used outside of the gaming projects that they are attached to. Still, they have proven to be quite valuable to gaming fans and thus, have retained their popularity.
CBDCs
One of the core features of traditional cryptos is that they are currencies issued by other people and institutions besides central banks. But believe it or not, there are cryptocurrencies issued by central banks of various countries.
As crypto became more popular, several countries decided that it would be beneficial to release official digital versions of their national fiat currencies. China, The Bahamas, the British Virgin Islands, and more have released central bank digital currencies (CBDCs) and others like Canada and the US are in various stages of developing their own.
These currencies can be used for domestic payments and transfers and seem to act as a middle-ground for crypto sceptics. China, for example, has banned third-party cryptos but was willing to create the digital yuan.
Conclusion
To get the best experience out of your crypto use, you should know about the different types of cryptos, even those you would not have imagined. From cryptos issued by central banks to those based entirely on memes, the industry has a lot to offer consumers and this is ever-growing.
These tokens show the creativity within the industry and how, with the power to create currencies, everyday people and experts alike are virtually unlimited in what they can do. Consider if any of the above tokens would meet your needs for privacy, community, entertainment, security, and anything else.