What Are the Main Types of Cryptocurrency?

When Bitcoin first got its start, most people assumed that it was just going to be a fad. A decade or more later, it’s quite possibly the most transformational thing to happen in the financial world. 

Are you getting into crypto trends and trying to learn all about them? The first thing you need to know is that there are two different types of cryptocurrency on the market that you can possibly trade. 

Keep reading to find out more about these two crypto investments so you can choose the best ones for your portfolio. 

Coins and Altcoins

The most popular kind of cryptocurrency in the market is coin-based, like Bitcoin and Ethereum. What distinguishes them from tokens is that coins own an independent blockchain. 

Bitcoin, the most popular cryptocurrency and the one with the highest market cap, has its own blockchain (the first one in the world). Ethereum is another with its own blockchain.

Altcoins are all coins besides Bitcoin. These are gaining a lot of traction in the market recently because many people have made millions from trading an obscure Altcoin which hit big all of a sudden. 

As always, if you are going to invest in cryptocurrency, you will want to keep your investment small and be prepared to lose it all. 


A lot of cryptocurrencies operate on Ethereum’s blockchain because it’s easier to hop on it than to create their own. These are called tokens. 

Even though they function pretty much the same as coins, that is, you can buy and sell them, they do not have their own blockchain. Some examples of tokens that work on Ethereum’s blockchain are Polygon, Tether, and Uniswap. 

There’s no need to be wary about investing in these tokens. Just because they don’t have their own blockchain doesn’t mean that they aren’t highly viable investments. Look here for more information on crypto hedge fund performance data.

The thing about investing in cryptocurrency is that you want to do your research before putting your money into any coin or token. If you don’t understand a particular cryptocurrency, it’s better not to put your hard-earned investment into it. 

Don’t rely on non-experts to give you advice on what to invest in either. It might be a case of the blind leading the blind and you don’t want to end up losing your investment due to someone else’s negligence or misinformation. 

Stay on Top of Crypto Trends and Different Types of Cryptocurrency

The world in general is changing very fast, but the cryptocurrency world changes even faster than that. Dozens of coins are released weekly and dozens of them die monthly as well. 

That’s why it’s important to know what types of cryptocurrency exist out there, so you can choose the right one for your investment goals. 

There’s a lot more to cryptocurrency investing strategy than what we have shared in this article. Keep browsing through related crypto trends articles to learn more. 

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