The cryptocurrency world is full of jargon; acronyms and futuristic words that could be straight out of the latest sci-fi flick.
Along with cryptocurrencies like Bitcoin and Litecoin, there are many other different types of crypto assets that can be found on the blockchain:
Stablecoins
As the name suggests, stablecoins are designed for stability. These are cryptocurrencies that are directly pegged to real-world assets. These assets could be precious metals like gold, oil, or silver, or national currencies like the dollar and euro. Regardless of the asset, the value of each individual stablecoin aims to remain the same as the asset it represents: A dollar-backed stablecoin, for example, should be worth one dollar.
By tapping into the relative stability of real-world assets, stablecoins are designed to bring consistency to the cryptocurrency ecosystem. When volatility hits, traders can quickly swap cryptocurrencies back to a stable currency without the bother of converting to fiat.
Blockchain Platforms
Although most people refer to Ethereum as a cryptocurrency, the actual currency powering the Ethereum network is called Ether. As a currency, Ether lets users pay for processing power to run smart contracts on the network, or buy products and services within Ethereum like ICO tokens.
As a blockchain platform, Ethereum[1] is designed to run smart contracts that form the infrastructure for a range of projects, like Microsoft’s Ethereum on Azure[2], and the Amazon Web Services[3] blockchain framework.
Privacy Coins
Newcomers to Bitcoin often mistakenly think that transactions with the cryptocurrency are private. But, Bitcoin only offers pseudonymity rather than anonymity. All Bitcoin transactions are recorded on a public ledger under a code that can be traced back to a real-world identity with a little detective work.
