What types of cryptocurrencies are there?

Cryptocurrencies can generally be divided into 3 main categories:

• Bitcoin

• Stablecoins

• Altcoins

Bitcoin ₿ 🪙

A separate category of cryptocurrency is —

Bitcoin.

||Details in a separate article||

Stablecoins

A stablecoin is a cryptocurrency with a stable price.

It's pegged to a real asset, most often the dollar.

Examples:

Tether Ξ

USD Coin

Their price hardly changes.

Example of usage

You shorted cryptocurrency for $100.

To keep the price stable, you convert your funds to USDT.

In the end:

100 USDT ≈ 100 bucks.

Stablecoins are often used:

for holding funds

for trading

for transfers

Altcoins

Altcoins are all cryptocurrencies created after Bitcoin.

Each altcoin is created for its own purpose.

Examples:

Ethereum — a platform for smart contracts and applications

Solana — a blockchain with fast and cheap transactions

Cardano — a project for decentralized systems

Example

If a developer wants to create an app on the blockchain, they can use the Ethereum network.

This app operates using the cryptocurrency ETH.