@mathematics.proofs 22 September 2020 more from that month

The 3 Main Types of Cryptoassets that Exist

In the crypto realm there are **3 main types of cryptoassets that exist**. In this article I'll be covering what they are in **very basic terms**. Exchange Tokens Exchange tokens are referred to as **'cryptocurrencies'** and the most common cryptocurrencies are **Bitcoin** and **Litecoin**. These two currencies make use of **distributed ledger technology** - but are not backed by any **central bank** or authority. Also, they are not the same as security or utility tokens as they do not grant the same types of rights or access, however, they can be used as a **medium of exchange** or as **investments**. https://tinyurl.com/yxmwjnsc https://en.wikipedia.org/wiki/Central_bank

*Image by* *Miloslav Hamřík* *from Pixabay* https://pixabay.com/users/vjkombajn-764634/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=3818528 Security Tokens Security tokens are a 'specified investment' as described in the Financial Services and Markets Act (2000) (regulated Activities) Order (RAO). They provide rights such as **ownership**, **repayments of particular sums** or an **entitlement to a percentage of future profits**. They can also be used as **transferable securities** or **financial instruments** according to the European Union's Markets in Financial Instruments Directive II (MiFID II). Utility Tokens Utility tokens can be received to **gain access to products and services** usually provided by a **distributed ledger technology (DLT)** platform. https://tinyurl.com/yxmwjnsc *Article by Tiago Hands:* *https://www.instagram.com/tiago_hands* *Lead image by* *Icons8_team* *from Pixabay* https://pixabay.com/users/Icons8_team-6332517/?utm_source=link-attribution&utm_medium=referral&utm_campaign=image&utm_content=3435862 *Reference: Cryptoassets Taskforce: Final Report, October 2018 [HM Treasury, Financial Conduct Authority & Bank of England]*