🪙 *main types of cryptocurrencies*
*1. Coins*
These are native digital currencies that run on their own blockchains.
- *Bitcoin (BTC)* – The original cryptocurrency, designed for peer-to-peer payments and store of value.
- *Ethereum (ETH)* – Powers smart contracts and decentralized apps (dApps).
- *Litecoin (LTC)* – Faster transaction times than Bitcoin, often called “silver to Bitcoin’s gold.”
- *Ripple (XRP)* – Focused on fast, low-cost cross-border payments.
📌 _Coins are used for payments, network security, and as digital money._
*2. Tokens*
Tokens are built on existing blockchains (like Ethereum) and don’t have their own blockchain.
- *Utility Tokens* – Used to access services (e.g., BAT for Brave browser, UNI for Uniswap).
- *Governance Tokens* – Allow holders to vote on project decisions (e.g., AAVE, COMP).
- *Security Tokens* – Represent ownership in real-world assets like stocks or real estate.
- *Exchange Tokens* – Issued by crypto exchanges (e.g., BNB by Binance, LEO by Bitfinex).
📌 _Tokens often follow standards like ERC-20 (Ethereum) and are used in dApps, DeFi, and more._
*3. Stablecoins*
These are pegged to stable assets like fiat currencies to reduce volatility.
- *Fiat-backed* – USDT (Tether), USDC (USD Coin), BUSD (Binance USD)
- *Crypto-backed* – DAI (backed by Ethereum and other crypto)
- *Algorithmic* – FRAX, which adjusts supply based on demand
- *Commodity-backed* – PAXG (backed by gold)
📌 _Used for trading, remittances, and as a safe haven during market volatility._
*4. Privacy Coins*
Focused on anonymous transactions and user privacy.
- *Monero (XMR)* – Uses stealth addresses and ring signatures
- *Zcash (ZEC)* – Offers optional privacy via zero-knowledge proofs
- *Dash (DASH)* – Includes PrivateSend for anonymized transfers
📌 _Ideal for users who prioritize financial privacy._
*5. Meme Coins*
Started as jokes but gained popularity through community hype.
- *Dogecoin (DOGE)* – Originally a meme, now widely used
- *Shiba Inu (SHIB)* – Inspired by Dogecoin, with its own ecosystem
📌 _Driven by social media and community engagement._
*6. GameFi & Metaverse Tokens*
Used in blockchain-based games and virtual worlds.
- *AXS (Axie Infinity)* – Earned through gameplay
- *MANA (Decentraland)* – Used to buy virtual land and items
- *SAND (The Sandbox)* – Powers a metaverse for creators and gamers.
