Explaining crypto currencies to people that have no concept of it, can be quite the task. The average potential investor does not care about the technicals or white papers. All people really want is the bottom line. When dealing with noobs, I like to separate crypto currencies into 3 categories:

  1. Bitcoin (Main coin)
    Bitcoin is its own category. I like to think of Bitcoin as the Gucci of the crypto world. It is the most recognized brand, and many non crypto investors only know bitcoin. They do not recognize the vastness of the space. If any coin ever catches up to bitcoin I would classify them as main coins.
    Bitcoin is the safest place to park your wealth in the crypto space, since it has the highest liquidity and is the trend setter in the market. If you are a longterm investor that just wants to park their wealth, this is the safest option. Bitcoin is seen as being digital gold. In the future bitcoin is speculated to be used for high price tag purchases, in the million and billion dollar range.

  2. Mid coins
    Coins that are more established than alts coins but not as popular as bitcoin, I categorize as being mid coins. There are many coins that can fit in this category but for simplicities sake, I consider any coin that is on Gemini exchange a mid coin, with the addition of ethereum classic. So basically litecoin, Zcash, bitcoin cash, ethereum and ethereum classic. These coins move in unison with bitcoin most of the time.
    I personally only trade mid coins and dont have any bitcoin. The reason for this is that mid coins can be more profitable than bitcoin on the way up. Example, if bitcoin goes up 3% they can go up 10%. If you are more of an active trader, I feel it is more beneficial to trade mid coins. This obviously comes with more risk, as there is no guarantee that mid coins will even survive.
    Litecoin is the most popular mid coin, and is seen as being digital silver. It is believed that whichever mid coins survive will be used for medium price tag purchase in the thousands to hundred thousand dollar range.

  3. Alt coins
    True alt coins, are everything else. They are often referred to as “sh*t coins.” They carry the most risk and have a high degree of uncertainty. While alt coins can pump over a 1000% during alt season, they can also drop in value fast. This category is filled with scams. To get a grasp of this you can look at failed alt coins. It is believed that which ever alt coin survives, will be used for regular everyday transactions, equivalent to pocket change and small notes ($1,2,5,10,20,50 and 100 dollar notes).

We can only speculate if crypto currencies will go mainstream and replace fiat currencies. It is clear that the financial system is not what it seems. It is up to the individual to seek out real knowledge on state of the economy and how to preserve their wealth.

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