As of summer 2022, there were over 20,000 cryptocurrencies in circulation. However, not every single one is active.
And while people mistakenly do this, cryptos aren’t synonymous with digital tokens either. Some cryptos are digital tokens, but not all are cryptos.
Are you now curious about this digital currency? Would you like to invest in it? Then keep reading to find out what the different types of digital tokens are.
Bitcoin is the most famous cryptocurrency, and it happens to be a digital token too. It’s the first crypto created and it first came about in 2009. It’s a blockchain network.
There’s a finite number of Bitcoins floating around; there’s a cap of 21 million and as of summer 2022, over 19 million have been mined already.
Bitcoin can be a safe bet since it’s the most successful digital token. It had a record value of over $65,000 per coin in November 2021. However, the value did crash and it seems to be holding steady at around $20,000 per coin.
Ethereum’s another popular crypto that is also a digital token. It was first released in 2015, so it hasn’t even been around for a decade yet.
Like Bitcoin, Ethereum is also a blockchain network. It wasn’t initially intended to be a currency, but it’s since grown into one. In fact, it’s the blockchain responsible for non-fungible tokens (NFTs).
While Bitcoin’s focus is peer-to-peer transactions, Ethereum’s is smart contracts. This means the focus is more on things like crowdfunding platforms and decentralized marketplaces. There’s also no cap on the Ether that can be mined.
No digital coin has ever been as valuable as Bitcoin, but Ether comes close. It’s the #2 digital currency and had a record value of over $4,800 in November 2021. In 2022, it’s worth about $2,000 per token.
Bitcoin and Ethereum are globally known and are the top digital tokens around. So let’s focus on one that’s more obscure: XLM.
XLM is a coin made by Stellar, which is an open-source and decentralized protocol. The main purpose of this virtual token is to facilitate low-cost transfers between currencies.
XLM was first released in 2014, so it’s actually older than Ethereum. Since the token’s inception, Stellar’s had several integrations with companies like Vumi in South Africa, Deloitte, IBM, and KlickEx in the South Pacific. The company’s also been involved with SureRemit in Nigeria and the Ministry of Digital Transformation in Ukraine.
You can check things like XLM price CAD online to determine if purchasing is wise.
Invest in Digital Tokens
Digital tokens can be a wise investment if you put money in at the right time. With this list, you have a fantastic starting point, as we’ve shown you some of the most popular digital tokens today.
Just make sure you do your research and don’t put all your eggs in one basket. That way, if things go wrong, you’ll avoid financial ruin.
Keep browsing our blog page for more finance information.
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