The different crypto categories for beginners

The different crypto categories for beginners

Are you new to the world of cryptocurrency and crypto stocks, and want to know more about how this all works? Do you want to know as much as you can before you start diving into the world of cryptocurrencies?

The cryptocurrency market is incredibly volatile which is practically new technology. These days there are more and more new cryptocurrencies rolling out all the time. This market is constantly growing and changing with more people buying into it while using a cryptocurrency app or any other tool, and more currencies are being developed.

There are so many different cryptocurrencies to keep track of, and as a beginner, this can be overwhelming. Here is a list of the different crypto categories for a beginner to know before they get started.

Crypto Categories for Beginners


Many people tend to think that when it comes to cryptocurrency, coins and tokens are the same things. While for the most part, they are interchangeable, they are different in how they work and what they have to offer.

The very first thing we will be looking at is coins. It is said that cryptocurrency coins were created to be used as a replacement for money. That’s why these coins can be used to purchase any sort of product and service.

In the simplest terms, a coin is a digital asset that can be used to purchase items or be traded. Coins are native to their blockchain. This means you cannot trade across currencies but rather within a currency, for example, bitcoin for bitcoin.


Unlike coins which are used to trade for assets, tokens are used differently. When it comes to tokens in cryptocurrency, they are most of a value that can be held on to. They are not normally used for purchasing goods, but rather for their trading value.

Tokens are kept for their values, traded, or even help to generate interest. These tokens are just like an investment. They grow as the cryptocurrency grows and they are great for trading across platforms and more.

Many say that tokens are easier to develop than coins because they are built off already existing blockchain technology. However, both have their pros and cons depending on what you are using them for.

Non-Fungible tokens

Next up, we have the non-fungible tokens. Again, these are just like other tokens which can be used and traded; however, they are different in that they are more unique and harder to come by.

The Non-fungible tokens are considered an art form. There are no two that are alike, just like when it comes to artwork there are no two that are alike. They are unique and can’t be replaced with anything. This is why trading with them has become so big.

Also known as NFTs, these can be anything digital, from artwork to music, to writing, and so much more. These NFTs give you ownership of the work.


Moving on, the next category to look at is Stablecoins. This is where it gets a bit confusing as some Stablecoins are not coins at all but rather tokens. When it comes to Stablecoins, they fall into 3 separate categories, Fiat-collateralized, Crypto-collateralized, and non-collateralized and they are all digital representations of the fiat currencies.

These stable coins are designed in such a way to have a relatively stable price and are said to have a regulated algorithm that keeps the price stable. This is where the name comes from. Coins can be used in the way of regular coins whereas Stablecoins tokens are used as tokens would be.

Meme Coins

Last but not least, we have meme coins. With names such as Dogecoin and Shiba Inu meme, coins have become quite popular over the last couple of years, especially when it comes to trading an investment.

Essentially these meme coins are cryptocurrencies that have been inspired by jokes are memes. This makes them incredibly relatable to that of the millennial generation. These coins started as a parody but have since become incredibly successful and are some of the most popular cryptocurrencies around. They are just like other cryptocurrencies and work in the same way, they just have funny names.