What type of crypto tokens do you prefer and how do you launch

Recently, cryptocurrency has become more popular as an innovative way to invest, transfer, and store value. Crypto tokens are digital assets that reflect a particular unit of value and can be traded on different platforms. There are several tokens , each has unique qualities and  applications, so not all the tokens are similar.

In this blog , we will explore the various categories of crypto tokens  and you might also know more about investing in cryptocurrencies.

Crypto tokens Explained: 

A digital asset that serves as a unit of value within a cryptocurrency network is called a crypto token. Blockchain technology is used by cryptocurrency developers to produce and manage various crypto currencies. Blockchain is a decentralized digital ledger that securely and openly records all transactions over a network of computers.

Choosing which cryptocurrency to invest in may often be challenging for newbies due to the abundance of options available. Fortunately, tokens may be classified into several unique groups.

Let us discuss different types and crypto tokens and how to launch your crypto tokens ?.

Kinds of Crypto tokens: 

Different types of Crypto tokens are listed below and explained, 

Platform tokens:

Platform tokens enable decentralized apps (dApps) for a range of uses utilizing blockchain technology. It has been endowed with protection and transactional capacity by virtue of the underlying blockchain technology. This token has the potential to be beneficial for a wide range of industries, including online marketplaces and world wide advertising. Digital collectibles and gaming are included in this as well. 

Smart contracts and decentralized apps are frequently developed and implemented by web3 developers using platform tokens. Uniswap is one such decentralized program that makes use of smart contracts to let users exchange tokens with one another. UNI is the native crypto coin of the uniswap system.  
Platform tokens can facilitate transactions and guarantee their security more effectively since they inherit the resilience of the blockchain on which they operate.

Some Platform tokens  are , 

• Cronos (CRO)
• Chainlink(LINK)
• Sushiswap(SUSHI)

Security tokens: 

Security tokens stand in for ownership of actual assets like stocks, bonds, or real estate. They are considered securities under federal security laws. Generally speaking, a security is a document that is issued by a company, trust, government, agency, or other legal authority to prove a debt, ownership stake, and the right to a portion of a company's profit, the power to distribute assets, or other comparable legal rights. 

Investors can easily swap securities with one another, including shares, warrants, bonds, debentures, notes, and options. Security tokens have a value that is proportionate to the asset’s worth, unlike shares of stock. Here, a token denotes ownership of an off-chain item such as business, piece of machinery, real estate, or unpaid debt. As an alternative , security tokens could be used by fundraising campaigns. 

Most popular security tokens are , 

• Props token(PROPS)
• Siacoin (SC)
• Blockchain capital (BCAP)

Transactional tokens :

Transactional tokens operate as a medium of exchange to facilitate transactions on blockchain networks. These have uses similar to those of traditional money , but they have extra advantages above fiat currencies. 

Since bitcoin was first designed to be an inexpensive and effective means of transferring money, it might be seen as transactional currency. Since the creation of bitcoin, numerous new transactional currencies have been developed , many of which have extremely cheap transaction fees and fast transaction rates. 

The following prominent cryptocurrencies stand out as a mechanism of value transfer because they place a high priority on quick transactions and low price. 

• Stellar (XLM)
• Alchemy pay(ACH) 
• Litecoin (LTC)

Utility tokens:

Utility tokens are digital assets, allowing customers to utilize a specific blockchain service or goods. Web3 companies often use initial coin offers to issue these tokens to the general public in order to raise money for new projects. Utility tokens can be used by users to get access to specific features or functions on  a platform or ecosystem, as well as to buy products and services. 

Utility tokens have a monetary worth, just like coupons or vouchers do. The buyer who purchases the token is entitled to swap it for a specific quantity of service or product access. 

Top examples of Utility tokens are 

• Cardano(ADA)
• Basic Attention token (BAT)
• Filecoin (FIL)

Governance Tokens:

A special kind of cryptocurrency known as “governance tokens” gives its owners the ability to vote on ideas and decide how to administer a decentralized or blockchain. DeFi(decentralized finance) projects and DAOs(decentralized autonomous organisations) frequently employ these coins, created by blockchain developers. 

Generally speaking, governance tokens allow owners to influence a project's course and advancement while also encouraging Web3 decentralization. Holders of governance tokens have an incentive to behave in the best interests of the project because the value of these tokens is directly correlated with the project's success.

The following list of cryptocurrencies is comprised of governance tokens:

• Aave (AAVE)
• Maker (MKR)
• UniSwap(UNI)

Non Fungible tokens: 

In the realm of cryptocurrency, Non-Fungible Tokens, or NFTs, have gained a lot of popularity. They stand for ownership of unique digital assets, most of which are works of digital art. But they might also be films, tweets, etc. Digital works are very tough to share or duplicate using these tokens. As a result, it can be thought of as an online digital creations' certificate of authenticity.

Some popular NFT tokens are , 

• Axie Infinity (AXS) 
• The Sandbox (SAND)
• Rarible (RARI)
• Efinity Token (EFI)

Bottomline: 

Thus, we hope this blog  helps you understand the world of blockchain a bit better with types of crypto tokens available in the market. If you have any idea to  launch your best crypto tokens , Hivelance will assist you a best token development services for you business because we have skilled blockchain token developers who have deep knowledge in various advanced technologies