The 4 types of crypto you need to know (y why they matter )

This is a question we all ask ourselves when entering the crypto world: Why are there so many different types? Which one should I use? The reality is that not all cryptocurrencies are the same, and understanding the differences can save you money and headaches.

1. Stablecoins: Your safety net in volatility

These are cryptocurrencies that DON’T fluctuate wildly: they always hold the same value because they’re tied to something tangible. USDT (Tether) is backed by dollars, PAXG by physical gold, DAI by a basket of cryptocurrencies. What are they for? To store profits without losing money during a crash, to make transactions without the fear of volatility, and for quick transfers without waiting for a bank.

It’s like having a cushion in the middle of a storm.

2. Tokens: The workers of other blockchains

They don’t have their own network; they live on existing platforms like Ethereum, Solana, BSC. Each token represents something: UNI gives you voting power on Uniswap, LINK buys data from oracles, CryptoKitties are literally digital collectible cats.

The point? They’re tools built to solve specific problems within an ecosystem.

3. Native cryptocurrencies: The owners of their own kingdom

These have their own blockchain, their own network, their own protocol. Bitcoin was the first: a P2P network that doesn’t need intermediaries. Ethereum came later with smart contracts and decentralized apps. Cardano is more recent, optimized for scalability and verifiability.

Each one is a complete universe.

So, which one should I choose?

It depends on what you’re doing:

• Speculating? Native cryptos (BTC, ETH) or tokens with real use cases
• Storing profits? Stablecoins
• Using a dApp? Tokens from the ecosystem you’re in
• Understanding the space? Start with Bitcoin, it’s the gold standard

The key is not to confuse the type with the project. A good native crypto doesn’t automatically mean it’s a good investment, and an innovative token doesn’t guarantee it’s not a scam. Research, verify, diversify.