If you are new to cryptocurrencies, it can be hard at first to understand it. Cryptocurrencies are encrypted virtual currencies and by encrypted we mean secure using cryptography. Bitcoin is usually referred to as the king and we strongly agree due to its distributed and decentralized nature. However, it would be wise to acknowledge that at anytime another one can come along to replace it. Just like Google came along to replace Yahoo & MSN search but the technology itself is here to stay.

Cryptocurrencies can be categorized in two groups. AltCoins and Tokens are both referred to as cryptocurrencies even if many do not function as a currency or a medium of exchange. AltCoins (alternative coins) are either the result of a Bitcoin derived blockchain such as Litecoin & Dodgecoin or the result of a Native Blockchain such as Ethereum & XRP. A Bitcoin derived blockchain offers a new set of features compared to bitcoin and achieved by either forking bitcoin, or making changes to the bitcoins open-sourced code. Tokens are often created and distributed though an ICO (Initial coin offering) and the tokens sold in exchange for altcoins or bitcoin are used to fund a project. Using Ethereum as an example, you can create your own tokens. To put it differently, tokens operate on top of an existing blockchain.