Understanding Cryptocurrencies

The term cryptocurrency is used to refer to coins that fulfill characteristics of standard paper-based money. The characteristics are its function as a store of value, unit of account, and fungibility (or the ability to be used regardless of its history of transactions).

Examples of cryptocurrencies include Bitcoin, Ethereum, and Litecoin. Typically, frameworks valuing cryptocurrencies take into account factors such as traction for the said coin and its supply schedules. Altcoins and coins are synonyms used to refer to cryptocurrencies. While they are sometimes used interchangeably in news articles and interviews, cryptocurrencies, crypto commodities, and crypto tokens are different entities. Their differences are important within the context of future regulation and valuation.