Different categories of coins and tokens - Invest Wisely

[hemendrachauhan19]

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.

When I started looking for the cryptocoin other than bitcoin, I was totally confused. I was shocked to see that there are more than 1200+ altcoins at that time, and now it's more than 1500. Every newbie will be confused to see so much drama and coins promises to go to moon. I was just finding similarity between different projects and then thought of putting them altogether in different categories.

Idea is to let newbies know about various categories they could target.

[larks500]

Anonymous coins it is payment coins at the same time. Platform coins it is payments coins as well. I can say that payments coins - it is just coins without any additional features.

[hemendrachauhan19]

Anonymous coins it is payment coins at the same time. Platform coins it is payments coins as well. I can say that payments coins - it is just coins without any additional features.

For anonymous coins you are right, but I don't think platform coin can come under payment coin. Yes users are using it pay less fees on there respective exchange but that's the sole purpose of it and that's why I have placed it under platform coin category. Maybe in future, different exchanges come together to support each other's coins and then the diversity and scope of platform coin acting as payment coin increases.

Or is there something else you are referring to which I am not aware of?

[bestcomputerpsycho]

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.

Yes agree with you on this, ETHLend is one example of the same. Not able to implement the crypto loan correctly. Also the time taken by them to give a loan is also on the higher side. Though NEXO platform seems good to me, not sure about MoneyToken though (never a fan of Roger Ver).

[bestcomputerpsycho]

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 bullish on security tokens for longer term. I feel POLY will do to security offerings what ETH done to dApps. I feel when US declares all tokens fall under SEC regulation, it'll create havoc in the current scenario and most of the platforms will be switched to security offerings platform. The only problem I see with POLY is that they are reliant on ETH and so have to deal with there own problems along with the same problem of slow transactions per sec which ETH are already facing.

[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 bullish on security tokens for longer term. I feel POLY will do to security offerings what ETH done to dApps. I feel when US declares all tokens fall under SEC regulation, it'll create havoc in the current scenario and most of the platforms will be switched to security offerings platform. The only problem I see with POLY is that they are reliant on ETH and so have to deal with there own problems along with the same problem of slow transactions per sec which ETH are already facing.

I also believe that going ahead security tokens is the future and fully agree with you on the part that POLY must have there own blockchain to support faster transactions per second. Also it'll give them the freedom to implement a solution in there preferred manner. I am in there telegram group where many users are saying the same thing but I remember that there CMO replies that by all of your logic "Google should build there own internet".
I like that they have clear idea of what they are going to do going ahead and they have no plans whatsoever of creating another blockchain. Also they have high trust on ETH network and there developers.

[bestcomputerpsycho]

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 bullish on security tokens for longer term. I feel POLY will do to security offerings what ETH done to dApps. I feel when US declares all tokens fall under SEC regulation, it'll create havoc in the current scenario and most of the platforms will be switched to security offerings platform. The only problem I see with POLY is that they are reliant on ETH and so have to deal with there own problems along with the same problem of slow transactions per sec which ETH are already facing.

I also believe that going ahead security tokens is the future and fully agree with you on the part that POLY must have there own blockchain to support faster transactions per second. Also it'll give them the freedom to implement a solution in there preferred manner. I am in there telegram group where many users are saying the same thing but I remember that there CMO replies that by all of your logic "Google should build there own internet".
I like that they have clear idea of what they are going to do going ahead and they have no plans whatsoever of creating another blockchain. Also they have high trust on ETH network and there developers.

Interesting quote that by Polymath's CMO. Ok, so we can clearly see it in a way that POLY is not going to develop it's own blockchain, not in a near future of 2-3 years atleast. After than time will tell if ETH can cope up with the other chains and with security tokens developed on POLY itself.

[Vlad_m]

Don't put all your eggs in one basket. Absolutely great thinking.

I wanted to tell you a bit more about POLY platform and STO coming on that platform.

Corl is the world’s first token to represent equity ownership in a company that provides revenue-sharing financing to high-potential early-revenue companies.

Unlike traditional tokens on the market, CRL is based on a profit-sharing model where investors receive a continuous stream of quarterly dividends in the form of ETH, based on future earnings of Corl.

[bestcomputerpsycho]

Don't put all your eggs in one basket. Absolutely great thinking.

I wanted to tell you a bit more about POLY platform and STO coming on that platform.

Corl is the world’s first token to represent equity ownership in a company that provides revenue-sharing financing to high-potential early-revenue companies.

Unlike traditional tokens on the market, CRL is based on a profit-sharing model where investors receive a continuous stream of quarterly dividends in the form of ETH, based on future earnings of Corl.

That's great, I have heard about CORL platform but haven't checked on it yet. But if they are building STO on POLY, they should give dividends in the form of POLY tokens. It would be good for both CORL and POLY.

[kingvirtus09]

Im not into a security token platform, I chase decentralized platform over controlled by the government. But up for you if you really interested to invest on centralized platform. As others said invest wisely.

[bestcomputerpsycho]

Im not into a security token platform, I chase decentralized platform over controlled by the government. But up for you if you really interested to invest on centralized platform. As others said invest wisely.

I think govt will still like to have some control over decentralization, and that's why they'll try to declare most of the existing tokens or coins as security. Then all of them needs to become a security compliant. That's why I'm bullish on it.
So which category is your favorite among the mentioned?

[hemendrachauhan19]

Don't put all your eggs in one basket. Absolutely great thinking.

I wanted to tell you a bit more about POLY platform and STO coming on that platform.

Corl is the world’s first token to represent equity ownership in a company that provides revenue-sharing financing to high-potential early-revenue companies.

Unlike traditional tokens on the market, CRL is based on a profit-sharing model where investors receive a continuous stream of quarterly dividends in the form of ETH, based on future earnings of Corl.

Yes CORL is a good project and trying to give there dividends through ETH to there investors. It seems to be a unique way of doing it, coz it's as similar as buying shares of a company. I have checked there whitepaper and it's pretty clean and looks professional. There team has vast experience on the idea which they are trying to solve through blockchain. I'm thinking of investing in it's ICO but then again the current trend is that after ICO you'll see 50-60% less price than ICO, so one half of me thinking of accumulating some at that point.

[hemendrachauhan19]

Im not into a security token platform, I chase decentralized platform over controlled by the government. But up for you if you really interested to invest on centralized platform. As others said invest wisely.

But 100% decentralization is never possible, if you see in case of ETH and BTC too, more than 40% of transactions are controlled by bitmain and other miners. I am sure you have heard of 51% dominance which these miners are trying to achieve and coz of the dropping prices, more and more people leaving the mining of BTC and it's just working in favor of the big cloud and ASIC miners.
Unless ETH and BTC come up with a solution to counteract this, in next 2-3 years we can easily see 51%+ attack.

[jacafbiz]

You can write whatever you want to write or do your classification, for me what drives the price of Bitcoin up was the adoption by silkroad and it is because it is anonymous coin, though not with better analysis one could trace it. but this is an issue for an of these privacy coins also. Alot of privacy tech would be added to BTC soon and will make it more difficult to trace

[hemendrachauhan19]

You can write whatever you want to write or do your classification, for me what drives the price of Bitcoin up was the adoption by silkroad and it is because it is anonymous coin, though not with better analysis one could trace it. but this is an issue for an of these privacy coins also. Alot of privacy tech would be added to BTC soon and will make it more difficult to trace

No it's not, anybody with little bit of experience in looking through blockchain explorer can easily trace back the transactions.
What made you think that BTC is anonymous coin? By looking your profile it seems you have vast experience in crypto space and yet you are saying this thing doesn't make any sense. Do you have any info to share about it or any proof to concur your sayings?
I bet BTC is never going to be an anonymous coin and also the devs are not working in that front at all.

[ravijadon12jan]

I always thought of doing some kind of classification but never gave enough time on doing the same research as you did. It looks pretty impressive and also the chosen tokens/coins correctly belongs to the category you've mentioned. As going ahead project should follow the security guidelines, there's a high chance that security tokens will boom in next couple of years. I am holding quite good amount of POLY and thinking of buying MOBU too after it starts trading on any exchange.

[hemendrachauhan19]

I always thought of doing some kind of classification but never gave enough time on doing the same research as you did. It looks pretty impressive and also the chosen tokens/coins correctly belongs to the category you've mentioned. As going ahead project should follow the security guidelines, there's a high chance that security tokens will boom in next couple of years. I am holding quite good amount of POLY and thinking of buying MOBU too after it starts trading on any exchange.

Yes I too started by categorizing at the top level and then slowly started looking into the whitepaper and technologies of the project. Made a list of similarities between different tokens/coins and put them in the category most suited as per there functionality. I am still researching more on the front of real life use cases of blockchain technology and will put some coins under that too.

[hemendrachauhan19]

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

I searched for few articles and blogs on internet but couldn't find something on similar line. That's why thought of doing it and made a list of different categories.

[yanyan27]

thank you for posting this, I learned a lot for this... specially that I am a newbie..my knowledge about coins is not enough that's why i still looking forward to learn more...

[Valzador]

thank you for posting this, I learned a lot for this... specially that I am a newbie..my knowledge about coins is not enough that's why i still looking forward to learn more...

the difference between beginners and experts is just flying hours, you have to experience many failures and read a lot about blockchain technology.