Types of Cryptocurrencies and Their Key Differences

1. Payment Cryptocurrencies
Designed as digital money, these cryptocurrencies can be used to pay for goods and services. Unlike traditional electronic money, they operate without banks or intermediaries.
Examples: Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH).


2. Platform Cryptocurrencies
These act as a foundation for building decentralized applications and smart contracts on the blockchain. They function like operating systems for decentralized technologies.
Examples: Ethereum (ETH), Cardano (ADA), Polkadot (DOT).


3. Stablecoins
Cryptocurrencies that maintain a stable value by being pegged to real-world assets like the US dollar or gold. They reduce the risk of price volatility.
Examples: Tether (USDT), USD Coin (USDC), DAI.


4. Privacy Cryptocurrencies
Focused on ensuring transaction anonymity, these cryptocurrencies conceal details such as the sender, receiver, and transaction amount.
Examples: Monero (XMR), Zcash (ZEC), Dash (DASH).


5. Utility Tokens
These tokens are required to access or use specific services within a blockchain ecosystem, such as paying transaction fees or unlocking features.
Examples: Binance Coin (BNB), Chainlink (LINK), Uniswap (UNI).


6. Governance Tokens
Holders of these tokens can participate in decision-making processes for a blockchain project, such as voting on updates or changes. They function like shares in decentralized systems.
Examples: Maker (MKR), Compound (COMP), Aave (AAVE).