Organizing the types of cryptocurrencies…? Part 1 (Episode 13)

Serialized Columns：From Zero: Cryptocurrency Trading：Issue 13

Up to herethis series has mainly discussed the basics of Bitcoin and cryptocurrencies.

I think you have roughly understood what Bitcoin is.

Practical and core discussions to profit from "Cryptocurrency Trading"are still ahead.

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Now, Bitcoin is such a central currency for all cryptocurrencies that there are many different types among them. This time, I will classify them into genres and explain what kinds of cryptocurrencies exist.

Cryptocurrencies and Fiat Currency

Before categorizing cryptocurrencies, let's first understand how to distinguish cryptocurrencies from real-world currencies.

Fiat Currency

It refers to money in the real world, paper money and coins, i.e., legal tender. When we say fiat, we mean the yen, the U.S. dollar, the euro, and the Chinese yuan.

Crypto Currency

All cryptocurrencies, led by Bitcoin. Crypto means “hidden” or “secret” or “cipher,” so technically it would be more accurate to call it encryption currency rather than cryptocurrency. However, in Japan the term cryptocurrency has become the common usage.

Within this crypto, there are many with different features and roles, including some thatdescribe contract information,record land rights information,and others that have a role similar to stocks.

A major feature of crypto is that there is no third party; peer-to-peer (P2P) exchange between the parties can be completed, so it can be applied in a wide range of fields beyond payments and remittances.

For example, escrow transactions, trusts/deposits, derivatives, stock certificates, bonds, domain contracts, digital content, various coupons, insurance contracts, sharing economy, and more…!

In the next 10 to 20 years, many jobs are expected to disappear, and this is exactly where the acceleration will occur, isn’t it?

Currency and Asset

Next, cryptocurrencies divide broadly into two genres.

Currency Type

Currency means "money."

Main Features

● There is no issuer.
● Supply increases through computer mining.
● The supply (issuance) is capped and cannot be changed by humans.

Representative Currency-Type Cryptocurrencies

● Bitcoin
● Ethereum
● Ripple
● BitShares
● Litecoin and others

Also, Ethereum, Ripple, and BitShares have “Bitcoin 2.0” roles or functions other than currency, while Litecoin and Monacoin are categorized as “altcoins” with currency-function equivalent to Bitcoin.

Market Cap Ranking

The Market Cap ranking of the existing crypto currencies by currency type in the top 20 (as of 2016-04-28) is as follows.



This site(in English) allows you to see all of them. This has become long, so the explanation of the other “Asset Type” will be in the next installment!