Bitcoin was the first crypto asset that emerged in the market. Based on the Bitcoin course code, many developers started to create new crypto assets as alternatives to Bitcoin, trying to create something better than BTC. Over 20 000 different digital coins exist in the market. All coins that were created after BTC are called altcoins, that is, alternative coins.
The main classification for crypto coins is:
- Coins
- Tokens.
Coins are crypto-assets built on their own blockchain. Examples are Ethereum, Bitcoin, and Ripple coin. Tokens are built on top of other blockchains – Chainlink and Dai tokens. It is a much easier way to create assets based on existing blockchains because it does not require developing any coding knowledge. Building a new token is s simple as creating a new website using a website builder. Still, if you want to create a token with special features, you will need some technical knowledge to engineer a smart contract. It is a digital contract with written conditions based on a blockchain that executes when all those conditions are met. You may also take other assets’ smart contracts and copy it.
What Do Cryptocurrency rates Depend On?
To succeed in cryptocurrency investment, you should understand how crypto prices are formed. Some factors that affect the market:
- The relationship between supply and demand plays a central role in price formation.
- The media coverage has a big effect on the market.
- Whales investors sometimes move the market in the direction they need.
If you want to become a successful crypto investor, start by learning the market’s principles and practicing trading. Feel free to use the WhiteBIT demo account to understand how trading strategies work, and read the WhiteBIT blog to keep abreast of the latest news from the industry.