The Different Types Of Crypto, Explained Simply

Let’s take a look at some coins and tokens  – what they do and how they’re used. 

Cryptocurrencies (Coins) – Digital money built on their own blockchains – coins like bitcoin, XRP or ether. People use them to spend, send, and save. 

Stablecoins – Designed to keep a steady value by being linked to something stable, like the U.S. dollar – so one coin aims to stay close to one dollar in value.

NFTs – Short for non-fungible tokens. They’re one-of-a-kind digital items, like a ticket   for a specific concert seat on a certain date, or a piece of digital art.

Tokens That Do Specific Things – They can work like tickets, membership cards or voting slips giving access to a service, unlocking features in an app or game, or letting you have a say in how a project is run. 

Real-World Asset Tokens (RWAs) – Digital tokens that represent physical or traditional assets. RWAs can include parcels of land, bonds, gold, and even wheels of Parmesan cheese.

Memecoins – Often created for humor or internet culture. Their prices usually rise and fall with hype, and they don’t normally have real-world uses.