First: not all cryptocurrencies serve the same function
Each currency is made for a different goal or project. We can categorize them into main categories:
1️⃣ The original currency: Bitcoin (Bitcoin - BTC)
The first and most famous cryptocurrency.
Its goal: to be an alternative to gold (Store of Value).
Its number is limited: only 21 million units.
> For example: digital gold – people hold it against inflation.
2️⃣ Smart currencies: Ethereum (Ethereum - ETH)
Not just a currency, but a platform for running smart applications (Smart Contracts).
Opened a new door for technologies such as:
Decentralized Finance (DeFi)
Non-Fungible Tokens (NFTs)
Games built on blockchain
> For example: Android, but for blockchain – projects build on top of it.
3️⃣ Altcoins
Any cryptocurrency other than Bitcoin is considered an Altcoin.
Some of the most famous are:
BNB – Binance platform currency
Solana (SOL) – a very fast network
Cardano (ADA) – a long-term academic project
XRP – aimed at banks and international transfers
> Some are direct competitors to Bitcoin or Ethereum, while others have completely different uses.
4️⃣ Stablecoins
Stable cryptocurrencies that are pegged to the dollar or others.
For example:
USDT (Tether)
USDC (Circle)
BUSD (Binance Dollar)
> The goal: to protect you from market fluctuations, and use it as if it were 'stable digital money'.
5️⃣ Governance Tokens
Gives you the right to vote on project decisions.
For example: UNI (Uniswap) and AAVE
6️⃣ NFT and gaming currencies
Used within games and artistic platforms.
For example: AXS (Axie Infinity), SAND (Sandbox)
⚠️ Important note:
Not all currencies are useful. There are thousands of empty or fraudulent projects.
Always necessary: ✅ Understand the currency's function
✅ Read the white paper (Whitepaper)
✅ Follow the development team and the community
📦 Summary of the day:
Cryptocurrencies come in multiple types:
Investment, applications, games, finance, voting...
You must differentiate between:
A currency that has a real project and a pump and dump currency.
