How many types of money and currency are there? More than you might realize, and more than you may ever use! In this article, we’ll cover the different types of money and currency that you might not have known existed.
And of course, if you can think of other types of currency or money that we missed, let us know in the comments section below!
With cryptocurrencies like Bitcoin, Litecoin, Ripple, Peercoin, and others all surging in popularity, it’s becoming easier to exchange money online. Types of electronic money like Bitcoin aren’t tied to a central bank or controlled by any one entity. As a result, transferring funds with digital currencies is faster and cheaper than traditional systems.
This new type of currency also offers consumers greater anonymity while they spend their money online. There are also new types of virtual currency such as Xbox Points that can be used as a form of payment on sites like Amazon or directly for Microsoft products such as games or Xbox consoles.
The term cryptocurrency can be confusing because it covers a broad category of digital currencies. The two most well-known are Bitcoin and Ethereum, but there are literally hundreds in circulation.
There are also types of cryptocurrencies, such as Litecoin and Dogecoin, which use similar principles to Bitcoin but with different algorithms. Some types might not even exist yet. It is important to research cryptocurrencies that may be worth investing in.
Checks, Notes and Coins
There are three main types of currency: checks, notes, and coins. In addition to your local currency, there are also a number of different types of digital currency like bitcoin. Cheques (often referred to as paper checks) are one form of money that you probably won’t use today but they have been around for hundreds of years.
An electronic version known as an e-check or virtual check is used when paying bills online. Notes have been replaced by coins in most instances – although some rarer currencies such as Bitcoins may not be eligible for them – several countries still use notes instead of coins.
In our fast-paced world, buying gift cards has become a common practice. From a practical standpoint, it makes sense. After all, you never have to worry about sizing or color matching when you give someone a gift card to their favorite store. In fact, according to research from eMarketer, there were more than $80 billion in gift card sales in 2012 alone.
That’s an incredible amount of money and it will only continue to grow as people realize just how convenient they are! But what many don’t know is that there are different types of money around the world – kind of like currency exchange rates but with types instead. Take, for example, gift cards: They can vary by value from one country to another.
Silver Rounds, Bars and Coins
Silver is one of many types of money that’s used as legal tender. And, though it’s not often seen in daily transactions in U.S. dollars (USD), other world currencies use silver coins more frequently.
Silver coins minted by sovereign governments are referred to as a legal tender, which means they must be accepted as payment for debts. Common types include Silver Rounds, Silver Bars and Silver Coins.
If you are leaving home and need to bring some extra cash, traveler’s checks can be a good option. These checks act as if they were cash when presented at places that deal with travelers. However, you may find that you do not get a good exchange rate for them at your destination country if it is not a popular tourist destination.
It is best to take enough cash or ATM cards so that you don’t have to rely on travelers’ checks. They also cannot be replaced easily in case they are lost or stolen.
Gold coins or bars can be a great investment if you’re looking for long-term growth potential. Many investors prefer gold over other types of money because its value doesn’t vary dramatically, it’s easily divisible, it doesn’t corrode, it’s accepted in many international markets, and there is already a massive global market in place.
There are several ways to invest in gold depending on your individual needs. If you want to buy gold as an investment but aren’t interested in physically holding it yourself (as some people prefer), you might consider buying shares in a mutual fund that invests in gold or other precious metals.
While rare coins have their place in art, they’re not technically currency; you can’t buy goods or services with them. That said, if you find yourself in possession of one, it’s probably a good idea to cash it in as soon as possible.
These collector’s items are most commonly graded on a 70-point scale called Mint State, from MS-70 (perfect condition) down to MS-1 (basically junk). Though a single coin could be worth millions in mint condition, a grade like MS-64 will set you back at least $1,000.
Bullion (Gold, Silver, Platinum)
Bullion is a generic term for gold, silver, platinum, or any other valuable metal in its raw form. For example, a gold bar is often referred to as bullion but not all gold bars are actually bullion because they may have had some value added to them (such as being made into jewelry). Bullion has no real intrinsic value itself but people buy it as an investment based on its face value.
Gold prices fluctuate daily depending on supply and demand which makes it a risky but profitable type of currency. Bullion’s price is usually expressed in terms of per ounce or per gram or per kilogram just like traditional currency.