Types of cryptocurrencies

Published: 13 января 2023
3 min

Cryptocurrency Functions

Once upon a time, the cryptocurrency was created for easy anonymous payments on the network. Now some cryptocurrencies have acquired all the functions of fiat money, such as:

  • Measure of value;
  • Means of circulation;
  • Means of payment;
  • Means of accumulation and savings;
  • The function of world money.

According to CoinMarketCap, there are now 15,895 cryptocurrencies, new coins appear daily, but only time-tested digital currencies are popular.


Classification of cryptocurrencies

All cryptocurrencies are divided by control into:

Decentralized, controlled on equal terms by miners;

Centralized, having a central management body.

Cryptocurrencies are also divided into:

  • Bitcoin;
  • Altcoins;
  • Tokens.

Bitcoin (BTC)

The most popular cryptocurrency is bitcoin, it was created in 2008 by a man under the nickname Satoshi Nakamoto.

The developer has set himself the task of creating an alternative to fiat money, which will be completely anonymous and independent of the state. Bitcoin became the first and most popular cryptocurrency, on the basis of which the rest were created.


Altcoins got their name because they were created as an alternative to the first cryptocurrency bitcoin. Altcoins have similar functionality to bitcoin, but often solve other tasks. On the basis of altcoins, promising projects have been created that will change the world beyond recognition in the future.

Let's list the main altcoins:

  • Litecoin (LTC) was created in 2011 by Charles Lee based on bitcoin code, but with improvements that accelerated the network and simplified mining;
  • Ethereum (ETH) was created in 2015 by Vitaly Buterin. "Ether" is the basic code that developers need to create modern business projects in the financial world.
  • DASH was created in 2014, the first coin that operates on a two-rank scheme, which makes it impossible to calculate transactions and data of the recipient and sender.
  • Ripple (XRP) was created in 2012 as a network for urgent payments around the world. Ripple does not need to be mined, so the technology requires low computing power.
  • IOTA was created in 2015 to make instant payments in online commerce.


Tokens do not have their own blockchain and depend on the network of other cryptocurrencies. They are issued to attract investors to ICO projects, an analogue of shares on the stock exchange. If the project is successful, the tokens acquire value and are traded on exchanges.

Let 's list the main tokens:


  • Tron was developed on the Ethereum blockchain for settlement within the company, the issue is $ 100 billion., 40% was sold as part of the ICO, 35% is frozen in accounts, the rest are traded on exchanges.
  • Binance Coin is a token of the Binance exchange created to advertise the trading platform. With it, you can pay the exchange commission at a discount.
  • The EOS token was released by the EOS project to attract funding, it was possible to raise $ 200 million. The platform allows you to create applications on the blockchain.
  • Tether is a stable token backed by a dollar. The platform works on the blockchain, but makes it possible to conduct transactions in fiat.
  • The OMG token was issued by an Asian company to attract financing. It was possible to attract $ 19 million. The funds were used to create a platform for exchanging fiat for cryptocurrency.

Cryptocurrency Forks

Forks are called clones of the original cryptocurrencies. For example, Litecoin is a fork of Bitcoin.

Let's list the types of forks:

  • The soft fork performs a soft modification of the cryptocurrency without violating the main protocol.
  • A hard fork is a toughened modification of the cryptocurrency, where the main protocol is divided into two parts that do not have the ability to interact with each other.


As we have already understood from the article, Bitcoin is the leader of the cryptocurrency world with the largest capitalization. Altcoins seek to repeat the popularity of the first world cryptomonets.

Tokens are a kind of electronic receipts of the creators, in case of success of the project, on which you can make good money.

The main conclusion is that the emergence of new crypto products that perform the role of stocks, bonds, indices, derivatives tells us about the growth and rapid development of the crypto industry in the world.


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