The Cryptocurrencies tribes
“As above, so as below”- This is the principle of correspondence that cryptocurrency will also have to follow as long it exist under the sun. In the stock market different companies are categorized by the industry that they do business within. For instance Curro falls under the education sector, Naspers serves Media and ICT space, Mediclinic falls under health sector, AdaptIT falls under ICT sector.
Same industry classification does exist in the cryptocurrency space, I know majority of amateur investors tend to think every coin competes with Bitcoin directly but that’s not the entire truth because each coin solve different problem from bitcoin. So in this article I will be discussing different classes of cryptocurrency, I refer this classes as tribes just to be dramatic.
The First Tribe: Currency Tribe
This is a tribe of coins that seek to become an exchange of the value between two people or more. They remove the need of banks and government to perform transactions. These coins are decentralized and every transaction appears on the public ledger known as the blockchain. Here are members of the currencies tribe:
- Stellar Lumens
- Bitcoin Cash
The Second Tribe: Blockchain as Platform (BAP) Tribe
This is the tribe of the builders; this tribe has an ability to build other crypto currency in the form of the smart contracts. I’m sure half of the crypto currencies we found on coinmarketcap.com are built on tops of this tribe. I would call this tribe, the mutant tribe. Here are the most famous BAP tribe members:
The Third Tribe: Lending Platforms
This tribe, their only purpose is to provide loans. They decentralized the lending industry by providing loans without credit report. This tribe hold your cryptocurrency as collateral meaning you get loan based on your cryptocurrency holding. There is growth within this sector, the biggest players are:
The fourth Tribe: Social media Platforms
Social Media platforms tribe aims to connect people in the world without centralizing user data like facebook, youtube, twitter, e.t.c. What this decentralized social media appealing is the fact that they reward the user for content creation. Here are leading platforms:
- Steem it
The Five Tribe: Privacy coins
This is tribe of coins that allow uses to perform anonymous and private transaction. Unlike Bitcoin which make transaction, privacy coin hides all data regarding the transactions on the blockchain. Here are some members of the tribe:
The Six Tribe: Marketplaces
This tribe is more about connecting customers and users with the service they require. They range from education, farming, bicycle sharing, and ecommerce. Here are some of this coins I know most of them are still on ICO stage.
The Seven Tribe: Master Node and Staking Coins
Master node and staking coins are the same in nature but different in the degree, what I mean is that both coins require you to buy and hold certain in order to receive incentives for performing the transactions. With Staking coins, you are required to hold certain amount of coins in a wallet in order to perform transactions and secure the wallet. While the master node you are required to hold a certain amount of coins on a Virtual Point Server or Rasberry Pi, this node will provide the network with private and instant send feature. Here are some members of the tribe:
- Smart Cash
In conclusion I hope this article will give you an idea on how you can built your portfolio, select best tribes to invest on. So guys as usual happy investing, follow my new channel on Viuly.io, is called Daily Noob activities.