Different categories of coins and tokens - Invest Wisely

[BQ]

Aren't you missing a category, for the coins/tokens representing real world industrial use? all those you mentioned seems to be more for "personal use" in some sense! what about "bank coins", what category would you place those in? I think we can make a few more categories considering there's thousands of coins/tokens - even if most of them are the same, not all are! 

[AltCoinShooter]

when there is varieties of things stay on a one place then it gets hard to find out the right one for you so in that case make a category as per their quality and divided them into that is wise decision to make things easy

[LuckyHarriet]

there is huge variety at coin and tokens in the cryptocurrency market and because that reason investors have to face  lots of problems while the have to choose the right coin for them so is a good move that they are making categories as per their quality

[imstillthebest]

there is huge variety at coin and tokens in the cryptocurrency market and because that reason investors have to face  lots of problems while the have to choose the right coin for them so is a good move that they are making categories as per their quality

agree . category can somehow help investors to easily identify a coin depending on their stats and specs but that does not mean that a coin listed on that category is already safe or risk free .  

investors face a lot of problems not just because of the number of coins but also to some other factors as well , such as decision making , lack of knowledge , too lazy to take a research before they invest on a certain projects , etc . 


overall , we need to be wise to be able to increase our chance of winning  the markets .

[Agaventy]

we all knows that very well that every week a new token or coin arrived in the market and all of them are unique on their own ways so I think it is good idea to divided them into categories it will help the investors to choice their required one easily

[TupMan007]

I think this is pretty impressive! Every investor should take their time to do research and come up with something like this. I guess this will be helpful for many rookie investors to look forward.

[zeze18]

I am only 10 months old in this blockchain/crypto space. I have invested initially for the sake of taking quick profits, even saw 4x of my investment in jan 2018 but didn't book a profit and still HODLing onto my coins and tokens. I have started with $1000 investment and in the next subsequent dips in market, entered another $500-700. As of now my investment stands around $3500. And I'm now adding fiat of around $200 monthly.

I have learned about some really cool projects, they seems cool to me, I might be wrong though  
But what I have learned is that one should not HODL there entire investment in just similar altcoins. I have done a bit of my research and have divided the coins into different verticals/domains. If I have to add another $2-3k fiat in crypto, I would divide my portfolio into different verticals in crypto space.

Here are those verticals/domains:

1. Payment coins (BTC, LTC, NANO) - Both are targeting to be used as method of payment in the coming future. BTC would be first choice by returns from it will be low but steady. LTC could give 3-4x more gains than BTC but more risky than BTC.

2. Anonymous Coins (XMR, ZEC, DASH, PRIV) - Almost similar vertical as first except that these are basically have enhanced feature of making non-traceable anonymous transactions. Again I have written the coins as per the Lowest risk/returns to higher risk/returns as per my research. PRIV is the newest of all, only couple of months old. What I like most about them that they have not done any ICO to raise money and they are giving tokens for spreading news about them to there community members. More than 50% of tokens, around 11M of total 21M will be distributed for free.
Disclaimer: I hold around 20000+ PRIV.

3. Platform Tokens (ETH, XLM, NEO, IOST, ICX) - Platforms that allowed dApps to be built on them, thereby increasing the blockchain applications and need of there tokens, as a result price will increase. ETH and NEO are most favorable and they are here for quite some time now. Developers of both have already proved themselves every now and then.

4. Exchange Coins/Tokens (BNB, KCS, HT, GVT) - These coins or tokens will be generally used inside there own exchange to reduce the trading fee by some percentage (generally 50%). As paying in other crypto yields more fee, people generally who trade in exchanges will be paying fees in respective exchange coin. Also these exchanges do a quarterly buy back and burn of there tokens, thereby significantly increasing there price.

5. Social network coins/tokens (STEEM, MITH, GTO) - These coins will be used within the social network platform built around them. Many users can earn by simply posting/liking/replying to articles/images.

6. Security tokens (POLY) - Currently only polymath allows security tokens to be built on there platforms. As per SEC chief all ICO's can be deemed as security in the coming future, there's huge opportunity for polymath. I know of another ICO (MOBU), which are on the same line as POLY is but they're still in ICO stage so can't say much about it.

7. Crypto loan (SALT, NEXO, MoneyToken) - This is a quite new vertical and an interesting one. People can deposit there fiat and take fiat as loan. It will help the people who needs fiat money for smaller amount of time but don't want to sell there crypto holdings. It could be the next big thing in crypto space.

Besides these there are several projects which are trying to replace traditional businesses using blockchain, like replacing online e-commerce, taxi-booking services, online advertisement etc. I have some projects to research on this vertical too, but don't know where to put them at. Maybe I'll put them under traditional business replacements projects (doesn't sounds cool though, suggest me if you can think of any good name).

These are the verticals as per my knowledge and research done yet, there could be many others which I have surely missed. I will update my post as and when i'll come across them.

Very good information with explanation, now i know the differences between them.
I'm still sure payment coins is the best for future.

[CripplesPlazma]

This information will come to use for many investors. They will be able to get the idea of how to categorize their investment on crypto market. I hope people will find this information useful.

[Eto_mete]

There are many investors who just want to dive in cryptocurrency market without doing research. I hope they will be able to see what it should take to come to crypto market. This seems to me a very good work.

[bonyaserg]

There are many varieties of coins on the market today. And in order to understand what kind of coins to buy, you need to analyze the market. And then give preference to the most profitable coin. Personally, I think at this time it's better to invest the Etherium. He will always be in demand.

[justspare]

It’s really great that you made this type of category. Nicely categorized each and every token and coins. Now people will understand properly about the usage of crypto coins and can use this knowledge in investing.

It is quite an informative post indeed. I have always been more tend towards exchange coins or tokens anyway with the consideration that this will really be very useful with the way the market is growing every day and new traders as well as investors are being born.

From a statistics I have seen, they have been the fastest ones to raise funds even when it comes to ICOs, and that makes most people to also share the same mindset. I am never a fan of anonymous coin and I feel there would be more eyes on these ones eventually by the government.

Your strategy of investment and adding fiats in the market seems quite cool to me. I think it may help you to maximize profits. I hope everyone will build up a perfect strategy for themselves.

The decisions you make normally in cryptocurrency investment should be based on how you perceive the future of a particular coin or token, whether it is something that would end up very useful in the long run, or something you really will not see much demand for it whether it is anonymous, pseudo anonymous, utility or whatever. Due diligence is necessary before investing into any project and then the importance of checking out the team as well.

[BigBrother]

A very interesting division. You've given me a lot to think about. This reduces the time to select the desired coin. After all, you can determine a more profitable category for yourself and from it you can already choose coins for investment.

[hemendrachauhan19]

you are right, if anyone want to make more profit they should follow your guide. it is really good way to put different categories of coins. I am always divided it into three categories.

I ain't asking anyone to follow my guide or advice, it's just that I was doing some research and thought of putting coins under different categories and able to do so for some of the coins I have researched. People are always advised to DYOR before investing in any project.

[hemendrachauhan19]

It’s really great that you made this type of category. Nicely categorized each and every token and coins. Now people will understand properly about the usage of crypto coins and can use this knowledge in investing.

It is quite an informative post indeed. I have always been more tend towards exchange coins or tokens anyway with the consideration that this will really be very useful with the way the market is growing every day and new traders as well as investors are being born.

From a statistics I have seen, they have been the fastest ones to raise funds even when it comes to ICOs, and that makes most people to also share the same mindset. I am never a fan of anonymous coin and I feel there would be more eyes on these ones eventually by the government.

Your strategy of investment and adding fiats in the market seems quite cool to me. I think it may help you to maximize profits. I hope everyone will build up a perfect strategy for themselves.

The decisions you make normally in cryptocurrency investment should be based on how you perceive the future of a particular coin or token, whether it is something that would end up very useful in the long run, or something you really will not see much demand for it whether it is anonymous, pseudo anonymous, utility or whatever. Due diligence is necessary before investing into any project and then the importance of checking out the team as well.

Yes, if you see binance coin is outperformed even bitcoin in terms of decline from it's all time high. Bitcoin is down by 65% as of now whereas Binance coin is down by 50% from there respective highs. Also BTC has came back to where it was in Nov. 2017 and Binance is trading almost 6-7x of it's Nov. 2017 price.
Though not a correct way to compare between the two but it's showing that people are really interested in exchange coins and keeps on HODLing to them. I am also planning on increasing my portfolio on BNB.

[hemendrachauhan19]

This information will come to use for many investors. They will be able to get the idea of how to categorize their investment on crypto market. I hope people will find this information useful.

That's the idea actually. It's always advised to not invest only in one bracket or category but in multiple categories. I'm sure there could be few other categories or better categories for the coins, but for the time being it'll help newbies coming to crypto space.

[hemendrachauhan19]

I am only 10 months old in this blockchain/crypto space. I have invested initially for the sake of taking quick profits, even saw 4x of my investment in jan 2018 but didn't book a profit and still HODLing onto my coins and tokens. I have started with $1000 investment and in the next subsequent dips in market, entered another $500-700. As of now my investment stands around $3500. And I'm now adding fiat of around $200 monthly.

I have learned about some really cool projects, they seems cool to me, I might be wrong though  
But what I have learned is that one should not HODL there entire investment in just similar altcoins. I have done a bit of my research and have divided the coins into different verticals/domains. If I have to add another $2-3k fiat in crypto, I would divide my portfolio into different verticals in crypto space.

Here are those verticals/domains:

1. Payment coins (BTC, LTC, NANO) - Both are targeting to be used as method of payment in the coming future. BTC would be first choice by returns from it will be low but steady. LTC could give 3-4x more gains than BTC but more risky than BTC.

2. Anonymous Coins (XMR, ZEC, DASH, PRIV) - Almost similar vertical as first except that these are basically have enhanced feature of making non-traceable anonymous transactions. Again I have written the coins as per the Lowest risk/returns to higher risk/returns as per my research. PRIV is the newest of all, only couple of months old. What I like most about them that they have not done any ICO to raise money and they are giving tokens for spreading news about them to there community members. More than 50% of tokens, around 11M of total 21M will be distributed for free.
Disclaimer: I hold around 20000+ PRIV.

3. Platform Tokens (ETH, XLM, NEO, IOST, ICX) - Platforms that allowed dApps to be built on them, thereby increasing the blockchain applications and need of there tokens, as a result price will increase. ETH and NEO are most favorable and they are here for quite some time now. Developers of both have already proved themselves every now and then.

4. Exchange Coins/Tokens (BNB, KCS, HT, GVT) - These coins or tokens will be generally used inside there own exchange to reduce the trading fee by some percentage (generally 50%). As paying in other crypto yields more fee, people generally who trade in exchanges will be paying fees in respective exchange coin. Also these exchanges do a quarterly buy back and burn of there tokens, thereby significantly increasing there price.

5. Social network coins/tokens (STEEM, MITH, GTO) - These coins will be used within the social network platform built around them. Many users can earn by simply posting/liking/replying to articles/images.

6. Security tokens (POLY) - Currently only polymath allows security tokens to be built on there platforms. As per SEC chief all ICO's can be deemed as security in the coming future, there's huge opportunity for polymath. I know of another ICO (MOBU), which are on the same line as POLY is but they're still in ICO stage so can't say much about it.

7. Crypto loan (SALT, NEXO, MoneyToken) - This is a quite new vertical and an interesting one. People can deposit there fiat and take fiat as loan. It will help the people who needs fiat money for smaller amount of time but don't want to sell there crypto holdings. It could be the next big thing in crypto space.

Besides these there are several projects which are trying to replace traditional businesses using blockchain, like replacing online e-commerce, taxi-booking services, online advertisement etc. I have some projects to research on this vertical too, but don't know where to put them at. Maybe I'll put them under traditional business replacements projects (doesn't sounds cool though, suggest me if you can think of any good name).

These are the verticals as per my knowledge and research done yet, there could be many others which I have surely missed. I will update my post as and when i'll come across them.

Very good information with explanation, now i know the differences between them.
I'm still sure payment coins is the best for future.

Of course they are, I am also very bullish on the payment coins especially on the anonymous coins. Yes, anonymous coins are hard to get approval from governments but going ahead I think that would be the preferred way of making transactions while not revealing your identity. Now a days everyone is concerned of there privacy and that's where anonymous coins comes into picture. Let's see how it pans out going ahead.

[hemendrachauhan19]

Security tokens are not introduced very commonly till now in the crypto space. There might need a really long time to turn it into a common token, tough some like Poly started introducing themselves. What do you think?

I am following the POLY tokens and there development. They have got a good team and keep on delivering on there promises at the defined timeline. I hold good amount of POLY tokens and going to increase portfolio even more on it. I'm holding it for at least 3 years, i.e. till Dec.2022 and see how it pans out for security tokens. I think if SEC take route to make every ICO a security than many ICO's will shift to POLY and that's when the price multi fold.

[hemendrachauhan19]

Good description you have made here and I guess this topic will be helpful for most of the new comers here. It looks like you have spent very good time over the crypto currency study and thus was able to classify the coins according to their usage and basis of creations.

Yes we do need this classification so that we can actually make our investment in that way only. How easy it is to see which coin is for what purpose ? With the use of it, one can put up the % investment according to the high quality use too.

I start by looking at the one-pager and then the whitepaper of the project which gives a fair bit of idea what actually the token/coin is trying to do. Though I don't read whitepaper in its entirety, but about 70-75% of it, especially where they try to explain the problem and how they're going to solve it. Then I join there social groups like twitter, telegram, discord, etc. I communicate directly with the admins, mods or devs and ask my queries, examine there answers and knowledge (Though 80% of ICO projects block me in 2-3 days coz of the questions )

And yes, after examining you can decide on what % of investment you want to put in the token or coin. I am more bullish on exchange coins as of now because of the obvious reason that most people are here for earning profits by doing trading. Once the crypto space matured enough, then only we can see use of Bitcoin or litecoin or any other payment coin to be really used as payment option.

[DarkBullet]

These information are very helpful specially to the newbies who wanted to be familiar with coins and tokens. There are thousands of altcoins out there, some have similar vision and mission but will differentiate in terms of transaction speed, transaction fee, security, partnerships and how they upgrade their platform. Before we invest, it would be better to check these also to know until when will our investment goes.

[Cryptoguru274]

I am only 10 months old in this blockchain/crypto space. I have invested initially for the sake of taking quick profits, even saw 4x of my investment in jan 2018 but didn't book a profit and still HODLing onto my coins and tokens. I have started with $1000 investment and in the next subsequent dips in market, entered another $500-700. As of now my investment stands around $3500. And I'm now adding fiat of around $200 monthly.

I have learned about some really cool projects, they seems cool to me, I might be wrong though  
But what I have learned is that one should not HODL there entire investment in just similar altcoins. I have done a bit of my research and have divided the coins into different verticals/domains. If I have to add another $2-3k fiat in crypto, I would divide my portfolio into different verticals in crypto space.

Here are those verticals/domains:

1. Payment coins (BTC, LTC, NANO) - Both are targeting to be used as method of payment in the coming future. BTC would be first choice by returns from it will be low but steady. LTC could give 3-4x more gains than BTC but more risky than BTC.

2. Anonymous Coins (XMR, ZEC, DASH, PRIV) - Almost similar vertical as first except that these are basically have enhanced feature of making non-traceable anonymous transactions. Again I have written the coins as per the Lowest risk/returns to higher risk/returns as per my research. PRIV is the newest of all, only couple of months old. What I like most about them that they have not done any ICO to raise money and they are giving tokens for spreading news about them to there community members. More than 50% of tokens, around 11M of total 21M will be distributed for free.
Disclaimer: I hold around 20000+ PRIV.

3. Platform Tokens (ETH, XLM, NEO, IOST, ICX) - Platforms that allowed dApps to be built on them, thereby increasing the blockchain applications and need of there tokens, as a result price will increase. ETH and NEO are most favorable and they are here for quite some time now. Developers of both have already proved themselves every now and then.

4. Exchange Coins/Tokens (BNB, KCS, HT, GVT) - These coins or tokens will be generally used inside there own exchange to reduce the trading fee by some percentage (generally 50%). As paying in other crypto yields more fee, people generally who trade in exchanges will be paying fees in respective exchange coin. Also these exchanges do a quarterly buy back and burn of there tokens, thereby significantly increasing there price.

5. Social network coins/tokens (STEEM, MITH, GTO) - These coins will be used within the social network platform built around them. Many users can earn by simply posting/liking/replying to articles/images.

6. Security tokens (POLY) - Currently only polymath allows security tokens to be built on there platforms. As per SEC chief all ICO's can be deemed as security in the coming future, there's huge opportunity for polymath. I know of another ICO (MOBU), which are on the same line as POLY is but they're still in ICO stage so can't say much about it.

7. Crypto loan (SALT, NEXO, MoneyToken) - This is a quite new vertical and an interesting one. People can deposit there fiat and take fiat as loan. It will help the people who needs fiat money for smaller amount of time but don't want to sell there crypto holdings. It could be the next big thing in crypto space.

Besides these there are several projects which are trying to replace traditional businesses using blockchain, like replacing online e-commerce, taxi-booking services, online advertisement etc. I have some projects to research on this vertical too, but don't know where to put them at. Maybe I'll put them under traditional business replacements projects (doesn't sounds cool though, suggest me if you can think of any good name).

These are the verticals as per my knowledge and research done yet, there could be many others which I have surely missed. I will update my post as and when i'll come across them.

Your research project is quite amazing and need serious commendation, you have done a good job, however i personally don't like crypto loan verticals because of the high risk involve in running it,many of them have failed in recent times.