Trading Basics: Types of Assets

CINDX focuses primarily on the crypto markets right now, but as indicated in the Whitepaper and the roadmap, there are plans to include a diverse range of markets and instruments in the future. It means there will be products available in the Marketplace, that allow investors to earn profits in various types of assets, following strategies that are dedicated to earning against a particular base asset.

This strategy presented in the marketplace has USD as its base currency.

So what types of assets are there in general, and what can you choose from when selecting a product on the CINDX platform?

Fiat

Fiat refers to government-issued currencies, such as the U.S. dollar, the euro. These typically are contrasted with cryptocurrencies, although those two categories are beginning to blur as governments, like the government of the Bahamas, plan to issue their own cryptocurrencies.

Fiat is usually supported by blockchain trading platforms in the form of stablecoins.

Stablecoin

Stablecoins are a special class of cryptocurrencies intended to maintain a stable price and value, in contrast to the other extremely volatile cryptocurrencies. Tether, for instance, is a project that issues tokens with value pegged to particular fiat currencies — for example, the USDT, a token designed to always be worth $1 USD. There are different types of stablecoins, backed by different assets (or even algorithms) and centralized/decentralized by nature.

Cryptoassets

Cryptoassets are assets in the form of a digital token, secured by cryptography and built on blockchain technology. The term refers to the token itself rather than the software upon which it is built. For example, Ethereum’s cryptoasset is ether (ETH). In some cases, including Bitcoin, the software and the cryptoasset bear the same name — for those currencies, you can distinguish between them because the name of the software is capitalized (“Bitcoin”) while the cryptoasset is written in all lowercase (“bitcoin,” or “BTC”).

Altcoins

“Altcoin” is a term primarily used by Bitcoin maximalists, proponents of Bitcoin who think that it is superior to all other cryptocurrencies, but recently it’s been more used to denote all cryptocurrencies that are not BTC without a negative connotation.

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