What Are the Different Types of Cryptocurrency?
Explore how coins, tokens, and stablecoins shape the digital economy.
Types of Cryptocurrencies
COINS
Built on their own blockchain, like Bitcoin or Litecoin — used mainly as money.
Tokens
Follow KYC verification for safety.
Stablecoins
Start with a small amount in USD, EUR, or your local currency.
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BINANCE
Run by companies like Binance or Coinbase that handle trades and store your funds securely.
Coinbase
Peer-to-peer systems where you keep control of your crypto — like Uniswap or PancakeSwap.
Kraken
Blend the best of both — CEX security and DEX control — offered by platforms like KuCoin or OKX.
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Choosing the Right Type for You
FAQ
Are all cryptocurrencies the same?
No. Cryptocurrencies serve different purposes. Some, like Bitcoin, act as digital money, while others, like Ethereum, power smart contracts or apps. There are also stablecoins designed to hold a steady value. Each type plays a unique role in the crypto ecosystem.
What is the difference between a coin and a token?
Coins have their own blockchain (like Bitcoin or Litecoin) and are mainly used as digital money.
Tokens, on the other hand, are built on existing blockchains (like Ethereum) and can represent assets, rights, or utilities inside specific platforms or apps.
Why are stablecoins important?
Stablecoins are linked to real-world assets like the US dollar or gold. They help reduce price volatility, making it easier for traders to move money quickly between cryptocurrencies without losing value. They’re often used for savings, payments, or transferring funds securely.
Which type is safest for beginners?
For beginners, stablecoins and top coins like Bitcoin or Ethereum are generally safer because they’re well-established and widely supported. However, safety also depends on where you store and trade your crypto — always use reputable wallets and exchanges.