Good day everyone,
How are we all doing? I want to specifically thank you all for joining, as we learn about crypto and the likes.

This group is majorly for educational purposes and also not that cryptocurrency investment are highly volatile.

cryptocurrency is a digital currency designed to work as a medium of exchange through a systematic network that is not reliant on any central authority, such as a government or bank. It has, from a financial point of view, grown to be its own asset class. The systematic network which crypto run on is called the cryptography.
Cryptography is a method of protecting information and communications using codes, so that only those for whom the information is intended can read and process it.

In few words cryptocurrency is digital version of fiat current(normal money wey use E.g naira, US dollars, pounds sterling, euro, e.t.c)

Types of crypto currency

There are four major types of cryptocurrencies which is widely accepted there are :

1.Payment cryptocurrency
2.Utility Tokens
3.Stablecoins
4.Central Bank Digital Currencies (CBDC)

Each type of coin is classified into one the following above base on the purpose of the coin.

PAYMENT CRYPTOCURRENCY
The first major type of cryptocurrency is payment cryptocurrency. Bitcoin, perhaps the most famous cryptocurrency, was the first successful example of a digital payment cryptocurrency. The purpose of a payment cryptocurrency, as the name implies, is not only as a medium of exchange but also as a purely peer-to-peer electronic cash to facilitate transactions. 

UTILITY TOKENS
The second major type of cryptocurrency is the Utility Token. Tokens are any cryptographic asset that runs on top of another blockchain. Ethereum network was the first to incorporate the concept of allowing other crypto assets to piggyback on its blockchain.
Types of utility tokens:
service token —- ETH
financial token — BNB
governance token — MRK

STABLE COINS
Given the volatility experienced in many digital assets, stablecoins are designed to provide a store of value. They maintain their value because while they are built on a blockchain, this type of cryptocurrency can be exchanged for one or more fiat currencies. So stablecoins are actually pegged to a physical currency, most commonly the U.S. dollar or the Euro.
The highest profile stablecoin is Tether’s USDT, which is the third-largest cryptocurrency by market capitalization behind Bitcoin and Ether. The USDT is pegged to the US dollar, meaning its value is supposed to remain stable at 1 USD each. It achieves this by backing every USDT with one US dollar worth of reserve assets in cash or cash equivalents.

CENTRAL BANK DIGITAL CURRENCY
Central Bank Digital Currency is a form of cryptocurrency issued by the central banks of various countries. CBDCs are issued by central banks in token form or with an electronic record associated with the currency and pegged to the domestic currency of the issuing country or region. In Nigeria we have e-naira.

Like cryptocurrencies, CBDCs are built upon blockchain technology that should increase payment efficiency and potentially lower transaction costs. While the use of CBDCs is still in the early stages of development for many central banks across the world, several CBDCs are based upon the same principles and technology as cryptocurrencies, such as Bitcoin.

We continue tomorrow 💯