So you’ve probably heard about Bitcoin, right?
Maybe Ethereum too. But if you’re just stepping into crypto – or even if you’ve been watching from the sidelines – there’s a lot more going on under the surface.
The truth is, not all crypto is built for the same reason. Some coins are trying to be money. Others are more like tech tools.
And a few? Honestly, they’re just memes (but somehow worth billions).
Anyway, here’s a quick breakdown of the different kinds of cryptocurrencies you’ll run into – and what they’re actually used for.
1. Currency Coins (Bitcoin and Others)
This includes Bitcoin, Litecoin, and similar ones.
They’re built to work like money. You can send them to people, use them to buy things (in some places), or just hold them hoping the price goes up.
Pretty straightforward.
2. Smart Contract Platforms
Ethereum is the big one here, but there’s also Solana, Avalanche, etc.
These aren’t just coins—they’re like the base layer for apps. Developers use them to build all kinds of things, from games to DeFi projects.
3. Stable coins
These are the chill ones. No wild price swings. Tether (USDT), USDC – they stay close to the value of a dollar.
Useful for trading or parking your money when the market goes nuts.
4. DeFi Tokens
Ever heard of Uniswap, Orion (ORN) coin or Aave?
These tokens run decentralized financial tools. No middlemen, no banks—just smart code doing the work. You can lend, borrow, and earn with them.
5. Privacy Coins
These are for folks who care about keeping things private.
Monero, Zcash, and others let you move money around without broadcasting your details. Some love it. Some governments… not so much.
6. Layer 2 Coins
Ethereum can get expensive. So people built “Layer 2” systems to make things faster and cheaper.
Tokens like MATIC (Polygon) help with that. They’re kind of like highways built on top of busy roads.
7. Utility Tokens
These tokens aren’t really for trading – at least not primarily.
They’re used inside apps. Like BAT in the Brave browser (you get paid for seeing ads). Think of them like loyalty points or in-app credits.
8. Meme coins
Dogecoin. Shiba Inu.
These coins often start as jokes, but sometimes blow up. They’re risky, often community-driven, and can go viral overnight. Should you invest in them? Up to you. Just know the ride can be wild.
Final Thoughts
The crypto world is full of coins and tokens – some serious, some experimental. If you’re getting into it, understanding the types is honestly more important than knowing the price.
Some are made to solve real problems. Some are just fun.
Either way, it helps to know what you’re buying into.