The term "cryptocurrency" seems a bit broad, doesn't it? I'm sure there are a ton of people out there who don't know that there are different "categories" of cryptocurrency. Trust me, they're not all the same.
The term cryptocurrency does an excellent job of highlighting the attributes of some coins, but it certainly doesn't capture the true essence of every coin out there. So let's break it down. Let's look at the different categories of cryptocurrency.
This is the one that everybody knows about. Bitcoin and Litecoin fall into this category. Currency cryptocurrency serves as a unit to be exchanged and a store of value, much like real-world dollars. Keep in mind that Currency cryptocurrency is only as valuable as people make it. Right now, Bitcoin is very valuable indeed.
Utility cryptocurrency creates an infrastructure that can be built upon. One popular example of a Utility cryptocurrency is Filecoin. Filecoin gives developers unique ways to retrieve and store data by creating a decentralized storage network. Another example of a utility cryptocurrency is Ethereum, which allows developers to create smart contracts.
As the name suggests, Platform/App cryptocurrency is a cryptocurrency version of an app or platform that's built on top of a "Utility" cryptocurrency. Take Augur for example which has been built upon Ethereum. The result is a decentralized outcome market. Let's say you place a bet on the next super bowl. If your prediction is correct, you make a profit.
Don't let the "currency" in "cryptocurrency" fool you into thinking that every coin out there operates like Bitcoin because quite frankly they don't. Each category of coins has their own incentive alignment, structures, and unique technologies.