Explore the different categories and use cases of crypto
There are thousands of cryptocurrencies, but they generally fall into a few categories based on their purpose.
Designed to be digital money for transactions.
Bitcoin (BTC): The original cryptocurrency. Digital gold, store of value.
Litecoin (LTC): Faster version of Bitcoin for everyday payments.
Blockchains that can run programs (smart contracts).
Ethereum (ETH): The leading platform for DeFi, NFTs, and dApps.
Solana (SOL): High-speed, low-cost alternative to Ethereum.
Avalanche (AVAX): Fast finality, EVM compatible.
Cryptocurrencies pegged to stable assets like USD.
USDC: Backed 1:1 by US dollars, fully audited.
USDT (Tether): Largest stablecoin by market cap.
DAI: Decentralized stablecoin backed by crypto collateral.
Governance and utility tokens for decentralized finance.
UNI: Uniswap's governance token
AAVE: Lending protocol governance
LINK: Chainlink oracle network
Started as jokes but gained real communities.
DOGE: The original meme coin
SHIB: Ethereum-based meme token
Be cautious of coins that: promise guaranteed returns, have anonymous teams, lack clear use cases, or pressure you to buy quickly.
1. What type of cryptocurrency is designed to maintain a stable value?
2. Which is NOT a warning sign for a cryptocurrency?