4.1 Types of Cryptocurrencies

Since the launch of Bitcoin in 2009, the cryptocurrency landscape has expanded dramatically, giving rise to thousands of digital assets with diverse purposes, structures, and underlying technologies. According to the International Monetary Fund (IMF), cryptocurrencies can be broadly defined as digital representations of value that rely on cryptographic techniques and distributed ledger technologies to secure transactions and control the creation of new units. While the term "cryptocurrency" is often used as a catch-all, these assets differ significantly in their design and function.

Cryptocurrencies can be categorized in multiple ways, including their use case (such as payments, utility, or governance), consensus mechanism (like proof-of-work or proof-of-stake), or level of centralization. The Financial Action Task Force (FATF) and other regulatory bodies often differentiate between coins (which operate on their own blockchain) and tokens (which are built on existing blockchains), further clarifying the structure of the crypto ecosystem.

Despite this complexity, cryptocurrencies generally fall into the following main types:

Native Coins

Native coins are the primary cryptocurrencies of a blockchain, created as part of its foundational structure—not built on top of another platform. They serve as the economic and operational backbone of their respective networks, enabling essential functions such as payments, governance, and network security.

Key Roles and Functions

• Transaction Fees and Network Operations: Native coins are used to pay transaction fees (e.g. “gas” on Ethereum) and support smart contract execution, validator rewards, and other core network activities.
• Security and Consensus Mechanisms: In Proof-of-Work systems (e.g. Bitcoin), miners are rewarded with native coins for validating transactions. In Proof-of-Stake networks (e.g. Ethereum), validators stake coins to secure the blockchain and earn rewards.
• Governance and Protocol Upgrades: Some native coins grant holders the ability to vote on protocol changes or participate in network governance, strengthening decentralization and user influence.
• Store of Value and Medium of Exchange: Many native coins, especially Bitcoin, are used as decentralized stores of value and means of transferring digital assets without intermediaries.

Examples of Native Coins

• Bitcoin (BTC): The first and most well-known cryptocurrency, designed for peer-to-peer payments and widely regarded as a decentralized store of value due to its fixed supply and security.
• Ethereum (ETH): Powers the Ethereum blockchain by enabling smart contracts and decentralized applications (dApps). ETH is also used for staking and paying transaction (gas) fees.
• Cardano (ADA): A proof-of-stake blockchain focused on scalability and sustainability. ADA is used for staking, transaction fees, and on-chain governance.

Characteristics

• Independent and Self-Sustaining: Native coins operate on their own blockchains and are not dependent on another platform or pegged to an external asset.
• Essential to Network Functionality: These coins are required for all key activities on the blockchain, including transactions, validation, and decentralized decision-making.
• Volatile but Valuable: Their prices can be highly volatile, but their value is often tied to the health, security, and utility of their underlying blockchain networks.

Altcoins

Altcoins (short for “alternative coins”) refer to all cryptocurrencies other than Bitcoin. While Bitcoin was the first and remains the most widely recognized cryptocurrency, altcoins have emerged to address perceived limitations of Bitcoin or to serve entirely different purposes—such as enabling smart contracts, faster transaction speeds, privacy features, or specialized use cases.

Some altcoins operate as native coins on their own blockchains, while others are tokens built on top of existing networks. The category is broad and diverse, encompassing thousands of cryptocurrencies with varying levels of adoption, innovation, and risk.

Key Roles and Functions

• Innovation Beyond Bitcoin: Altcoins often explore improvements in scalability, transaction efficiency, energy use, or programmability. Many use different consensus mechanisms such as Proof-of-Stake (PoS), Delegated Proof-of-Stake (DPoS), or Proof-of-Authority (PoA).
• Specialized Use Cases: Some altcoins are designed for privacy (e.g. Monero), cross-border payments (e.g. Ripple/XRP), or decentralized finance (e.g. Uniswap). Others focus on governance, supply chain tracking, gaming, or tokenizing real-world assets.
• Diversification and Competition: Altcoins offer alternatives to Bitcoin’s model and compete for adoption in different niches. This competitive environment drives technological development across the crypto space.
• Lower Market Share, Higher Volatility: Altcoins generally have smaller market capitalizations than Bitcoin, making them more volatile but potentially offering higher short-term returns—along with higher risk.

Examples of Altcoins

• Ethereum (ETH): Though now the second-largest cryptocurrency, Ethereum is still considered an altcoin. It introduced smart contract functionality and supports thousands of tokens and dApps.
• Solana (SOL): A high-performance blockchain known for fast, low-cost transactions. Solana is widely used in DeFi, NFTs, and Web3 applications.
• Monero (XMR): A privacy-focused altcoin that uses advanced cryptographic techniques to obscure transaction details, making it appealing for users who prioritize anonymity.

Characteristics

• Diverse and Evolving: Altcoins span a wide range of technologies, use cases, and market positions. They can be native coins or tokens, depending on their blockchain structure.
• More Experimental: Many altcoins are still in early development stages, offering cutting-edge features but also facing higher risks of failure, regulatory scrutiny, or limited adoption.
• Driving Innovation: Altcoins have introduced key developments such as smart contracts, decentralized governance, and layer-2 scaling—contributing significantly to the evolution of blockchain technology.

Tokens

Tokens are digital assets that are created and managed on existing blockchains, rather than operating on their own standalone blockchain like native coins. They rely on a host blockchain’s infrastructure—such as Ethereum, Solana, or BNB Chain—to function. Tokens are typically generated through smart contracts, which define their rules, supply, and behavior.

Tokens are highly flexible and serve a wide variety of roles in the crypto ecosystem—from enabling access to decentralized applications (dApps) and voting in decentralized governance, to representing real-world assets or stable currencies. Unlike native coins, which are integral to the operation of a blockchain, tokens are generally application-specific.

Key Roles and Functions

• Service and Application Access: Many tokens act as utility tokens, granting users access to features, products, or services within a specific blockchain platform or dApp.
• Governance and Decision-Making: Governance tokens allow holders to vote on protocol upgrades, rule changes, and other decisions within decentralized organizations (DAOs).
• Payments and Mediums of Exchange: Some tokens are used like currency within a particular ecosystem, facilitating transactions, fees, or reward systems.
• Asset Representation and Regulation: Security tokens represent ownership in real-world assets like stocks, real estate, or investment contracts, and may be subject to securities regulation.
• Price Stability and Fiat Pegging: Stablecoins are tokens pegged to the value of a fiat currency (like USD or EUR) to reduce volatility. They are commonly used for trading, savings, and payments in DeFi platforms.
• Non-Fungible Tokens (NFTs): A unique class of tokens that represent individual digital items such as art, music, game assets, or digital collectibles. Each NFT has a unique identity and cannot be exchanged one-to-one like traditional tokens.

Common Types of Tokens

Characteristics

• Built on Existing Blockchains: Tokens rely on host blockchains like Ethereum or Solana for operation, security, and transaction settlement.
• Created via Smart Contracts: Tokens are programmable and follow standard frameworks like ERC-20 (fungible), ERC-721 (NFTs), or ERC-1155 (multi-token) on Ethereum, allowing compatibility across wallets and platforms.
• Purpose-Built and Flexible: Tokens can be tailored for virtually any use case, from decentralized governance to gaming economies, making them a core component of the Web3 and DeFi ecosystems.
• Variable Regulation and Risk: Depending on the type, tokens may face different regulatory scrutiny—especially in the case of security tokens or algorithmic stablecoins.
• Easier and Cheaper to Launch: Creating a token does not require building a new blockchain, making it more accessible for startups and developers to build digital economies or launch decentralized projects.

Wrapped Tokens

As blockchain networks like Bitcoin, Ethereum, and others were built with different technologies and rules, they don't naturally "talk" to each other. This limits the ability to use assets like Bitcoin on non-Bitcoin platforms.

Wrapped tokens solve this problem. They are digital assets that represent another cryptocurrency or asset on a different blockchain, enabling cross-chain compatibility and functionality. They are typically created by locking the original asset in a smart contract and issuing an equivalent token on another blockchain, which can then be used within that ecosystem. For example, Wrapped Bitcoin (WBTC) is an ERC-20 token on the Ethereum blockchain backed 1:1 by Bitcoin held in custody.

The primary purpose of wrapped tokens is to bridge the gap between blockchains with different protocols, allowing assets to be used in decentralised finance (DeFi) applications, smart contracts, or other blockchain-specific features not natively supported by the original asset. This process enhances interoperability, increases liquidity, and expands use cases for assets across various networks.

Key Roles and Functions

Wrapped tokens serve several essential functions in the blockchain ecosystem:

Interoperability

• They bridge blockchains, enabling assets to move and be used across multiple networks.
• This allows tokens like Bitcoin to interact with Ethereum-based applications, despite technical incompatibility.

DeFi Access

• Wrapped tokens enable non-native assets (e.g. BTC) to be used in smart contracts, liquidity pools, and lending platforms.
• This opens up borrowing, lending, trading, and staking opportunities for holders of those assets.

Liquidity Expansion

• They increase liquidity in DeFi platforms by making traditionally non-DeFi assets available for trading and investment.
• This helps markets function more efficiently and with more available capital.

Maintaining Price Parity

• Wrapped tokens are usually backed 1:1 by the original asset, meaning they aim to always hold the same value as the asset they represent.
• A custodian or smart contract ensures the wrapped version can always be exchanged back.

Examples of Wrapped Tokens

Wrapped Bitcoin (WBTC)

• Network: Ethereum (ERC-20)
• Represents: Bitcoin (BTC)
• Purpose: Lets Bitcoin holders use DeFi applications on Ethereum.
• Managed by: A group of custodians and merchants via the WBTC DAO.
• Example Use: BTC holders can lend their wrapped Bitcoin on Aave or use it as collateral on MakerDAO.

Wrapped Ether (WETH)

• Network: Ethereum (ERC-20)
• Represents: Ether (ETH)
• Purpose: Standardizes Ether to ERC-20 format so it can interact fully with Ethereum smart contracts.
• Example Use: Essential for trading ETH on decentralized exchanges like Uniswap.

Wrapped BNB (WBNB)

• Network: Binance Smart Chain (BEP-20)
• Represents: Binance Coin (BNB)
• Purpose: Allows BNB to be used in smart contracts and DeFi on BSC.
• Example Use: Trading or providing liquidity on PancakeSwap.

Characteristics

• One-to-One Asset Backing: Each wrapped token is backed by an equal amount of the original cryptocurrency. This backing ensures that the wrapped token maintains its value relative to the original asset.
• Cross-Chain Compatibility: Wrapped tokens allow assets to be used on blockchains that they are not native to. For example, Bitcoin can be used on Ethereum through Wrapped Bitcoin (WBTC).
• Smart Contract Integration: Wrapping enables assets to interact with smart contracts and decentralized applications (dApps), which is not possible on blockchains like Bitcoin that lack native smart contract functionality.
• Managed by Custodians or Protocols: The wrapping process is typically managed either by a centralized custodian (e.g. a company holding the original asset) or a decentralized system (e.g. smart contracts that lock up the original asset).
• Redeemability: Wrapped tokens can be unwrapped or redeemed, meaning users can exchange them back for the original asset, maintaining trust and flexibility.

Stablecoins

Stablecoins are a special category of tokens designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar, euro, or other assets such as gold. Their primary purpose is to reduce the extreme price volatility commonly seen in other cryptocurrencies like Bitcoin or Ethereum, making them useful for everyday transactions, trading, and as a reliable store of value within the crypto ecosystem.

Stablecoins play a crucial role in bridging traditional finance and decentralized finance (DeFi) by providing a familiar and stable medium of exchange that can be easily transferred across blockchain networks.

Key Roles and Functions

• Price Stability: By pegging their value to a stable asset, stablecoins help users avoid the unpredictable price swings that characterize most cryptocurrencies, making them more practical for payments, remittances, and savings.
• Facilitating Crypto Trading and DeFi: Stablecoins serve as a common trading pair on exchanges and provide liquidity in decentralized finance protocols such as lending, borrowing, and yield farming.
• Cross-Border Payments: They enable fast, low-cost international transfers without relying on traditional banking systems, reducing friction and costs in remittances.
• Store of Value and Unit of Account: For many crypto users, stablecoins act as a digital equivalent of cash, preserving value during volatile market conditions and providing a consistent unit of account.

Examples of Stablecoins

• Fiat-Collateralized Stablecoins: Backed 1:1 by fiat currency reserves held by a central custodian (banks or trust companies). They maintain value through collateral guarantees.
  • Examples: USD Coin (USDC), Tether (USDT), TrueUSD (TUSD)
• Crypto-Collateralized Stablecoins: Backed by other cryptocurrencies held in smart contracts. These stablecoins are often over-collateralized to absorb market fluctuations and use algorithms to maintain the peg.
  • Examples: DAI (backed by Ethereum and other crypto assets)
• Algorithmic Stablecoins: Use algorithms and smart contracts to automatically expand or contract the token supply (e.g. minting or burning tokens, or using dynamic collateral ratios) to maintain price stability, without backing by collateral.
  • Examples: TerraUSD (UST) (note: experienced significant issues), Frax

Characteristics

• Pegged to Stable Assets: Most stablecoins maintain a 1:1 peg to a fiat currency, though some may be pegged to commodities or a basket of assets.
• Different Degrees of Decentralization: Fiat-backed stablecoins are often centralized due to custodial reserves, while crypto-backed and algorithmic stablecoins aim for greater decentralization but can carry higher risk.
• Regulatory Attention: Due to their widespread use and connection to traditional financial systems, stablecoins are increasingly under regulatory scrutiny worldwide to ensure transparency, security, and consumer protection.
• Critical Infrastructure in DeFi and Payments:
  Stablecoins are foundational to many decentralized finance applications, enabling consistent pricing and efficient capital movement.

Note: We will further explore stablecoins in lesson 4.4

Central Bank Digital Currencies (CBDCs)

Central Bank Digital Currencies (CBDCs) are digital forms of fiat money issued and regulated by a country’s central bank. Unlike cryptocurrencies such as Bitcoin, which operate in decentralized networks without a central authority, CBDCs are centralized digital currencies designed to represent the traditional national currency in a digital format.

CBDCs aim to combine the efficiency and convenience of digital payments with the stability and trust associated with government-backed money. They are part of a growing global trend among central banks exploring ways to modernize the financial system and promote financial inclusion.

Key Roles and Functions

• Digital Equivalent of Cash: CBDCs serve as a direct digital representation of a country’s sovereign currency, allowing individuals and businesses to hold and transfer money electronically with the same legal status as physical cash.
• Enhancing Payment Systems: By enabling faster, cheaper, and more secure transactions, CBDCs can improve the efficiency of both retail (consumer) and wholesale (interbank) payment systems.
• Financial Inclusion: CBDCs have the potential to provide access to financial services for unbanked and underbanked populations, especially in regions where traditional banking infrastructure is limited.
• Monetary Policy Implementation: Central banks may use CBDCs as new tools to implement monetary policy more directly, improving control over money supply and interest rates.
• Reducing Illicit Activities: With enhanced transparency and traceability (depending on design), CBDCs could help combat money laundering, tax evasion, and fraud.

Examples of CBDCs

They are generally classified into two types:

• Retail CBDCs: Intended for use by the general public for everyday transactions, similar to cash or bank deposits. They are designed to be accessible to individuals and businesses.
• Wholesale CBDCs: Restricted to financial institutions for interbank settlements and large-value transactions, aiming to increase efficiency and reduce risks in the financial system.

Several countries have already developed or piloted CBDCs, each with different goals and use cases. Notable examples include:

• e-CNY (Digital Yuan) – China: Issued by the People's Bank of China, this retail CBDC has been rolled out in pilot programs across major cities. It is one of the most advanced CBDC projects globally and is intended for widespread public use.
• Digital Euro – European Union: Proposed by the European Central Bank, the Digital Euro aims to complement physical cash and ensure the euro remains fit for the digital age. It is currently in the design and testing phase.
• JAM-DEX – Jamaica: Short for Jamaica Digital Exchange, JAM-DEX is one of the first fully launched retail CBDCs available for public use. It allows Jamaicans to make payments and store value digitally through mobile apps.

Characteristics

• Centralized and Regulated: Issued and controlled by the central bank, CBDCs maintain the sovereignty of the national currency in a digital form, contrasting with decentralized cryptocurrencies.
• Programmable Money: CBDCs can be designed with programmable features, such as conditional payments, automated tax collection, or compliance controls.
• Privacy and Security Considerations: Designs vary in how much privacy they afford users; some prioritize anonymity similar to cash, while others implement strict identity verification to prevent illicit use.
• Global Interest and Development: Many countries—including China, the European Union, and the United States—are actively researching or piloting CBDCs to understand their potential benefits and challenges.

Governance and Utility Tokens

Some tokens are created to give users certain rights or access within a blockchain-based platform. Two of the most important types of these are governance tokens and utility tokens.

These tokens play essential roles in how decentralized systems operate. Rather than being used just for payments, they are often used to vote on decisions, access features or services, or participate in ecosystem development.

Key Roles and Functions

Governance and utility tokens serve different but sometimes overlapping purposes in a blockchain ecosystem:

Governance Tokens

• Allow holders to vote on proposals that affect how a blockchain protocol operates.
• Influence changes such as system upgrades, funding allocation, or changes to the rules (also called protocol parameters).
• Help ensure that decisions are community-driven, supporting the idea of decentralization.

Utility Tokens

• Grant access to specific products, services, or functionalities on a blockchain platform.
• Are often required to use a dApp (decentralized application), pay for services, or receive platform benefits.
• Can serve as a medium of exchange within a closed blockchain environment (but not typically outside it).

Types of Governance and Utility Tokens

Understanding the different types helps clarify how these tokens operate:

Governance Tokens

• On-chain governance tokens: Used to vote directly on the blockchain. Votes are recorded publicly and executed automatically via smart contracts.
• Off-chain governance tokens: Used for signaling or off-chain voting; decisions are later implemented by developers or project teams.

Utility Tokens

• Access tokens: Required to access a platform or service (e.g. using bandwidth, computing power, etc.).
• Incentive tokens: Earned as rewards for participating in the ecosystem (e.g. staking, contributing resources).
• Fee tokens: Used to pay for services within the network, such as transaction fees or subscriptions.

Examples of Governance and Utility Tokens

Maker (MKR)

• Type: Governance Token
• Function: Allows holders to vote on decisions in the MakerDAO system, which manages the DAI stablecoin.
• Authority: MakerDAO is one of the earliest decentralized autonomous organizations (DAOs), and MKR holders help maintain its stability and integrity.

Aave (AAVE)

• Type: Governance and Utility Token
• Function: AAVE holders can vote on governance proposals and also use the token within the Aave lending platform for borrowing, staking, or reducing fees.
• Authority: Aave is a leading DeFi (Decentralized Finance) platform, and AAVE plays a central role in how it is run and used.

Uniswap (UNI)

• Type: Governance Token
• Function: UNI holders govern the Uniswap protocol, a major decentralized exchange. They vote on upgrades, changes to fee structures, and treasury usage.

Basic Attention Token (BAT)

• Type: Utility Token
• Function: Used within the Brave browser to reward users for viewing ads and to pay content creators. It facilitates a new kind of advertising economy.

Characteristics

• Non-Monetary Primary Function: These tokens are not primarily used as digital currency for payments. Instead, they are designed to provide access, control, or participation within a specific platform.
• Platform-Specific Use: Governance and utility tokens are usually limited to the ecosystem in which they were created (e.g. AAVE on the Aave platform, UNI on Uniswap).
• Enable Ecosystem Participation: Token holders can vote, stake, pay for services, or access premium features, depending on the token’s design.
• Governance Rights (for Governance Tokens): Holders can influence key decisions such as protocol upgrades, treasury spending, or risk parameters through on-chain or off-chain voting mechanisms.
• Access or Incentive Utility (for Utility Tokens): Utility tokens may grant access to a platform, act as fuel for services (like gas fees), or reward users for contributing to the ecosystem (e.g. staking or content creation).
• Often Built on Established Standards: Many of these tokens are built on token standards like ERC-20 (Ethereum), making them compatible with wallets, exchanges, and smart contracts.
• Subject to Volatility and Regulation: Token values can fluctuate based on market demand, usage, or governance decisions, and may be subject to regulatory scrutiny, especially if considered securities.

Privacy Coins

Privacy coins are cryptocurrencies designed specifically to enhance user privacy and anonymity by obscuring transaction details such as sender and receiver identities and transaction amounts. Unlike most cryptocurrencies, which operate on transparent blockchains where transaction histories are publicly visible, privacy coins use advanced cryptographic techniques to shield sensitive information.

These coins cater to users who prioritize confidentiality, whether for legitimate privacy concerns, such as protecting financial data from surveillance, or for illicit activities. Because of their privacy features, privacy coins often face increased regulatory scrutiny.

Key Roles and Functions

• Transaction Privacy: Privacy coins mask key transaction information, making it difficult or impossible for outside parties to trace funds or link transactions to individuals.
• Enhanced Fungibility: By hiding transaction histories, privacy coins maintain their fungibility—meaning each coin is indistinguishable from another—ensuring that users don’t risk their coins being “tainted” by association with previous transactions.
• Protection Against Surveillance and Censorship: These coins offer protection against financial surveillance, censorship, or restrictions by governments or third parties.

Techniques Used

• Ring Signatures: Mix a user’s transaction with a group of others, making it unclear which participant initiated the transfer (used by Monero).
• Stealth Addresses: Generate one-time addresses for each transaction to hide the recipient’s identity.
• Zero-Knowledge Proofs: Allow verification of a transaction’s validity without revealing details (used by Zcash).

Examples of Privacy Coins

• Monero (XMR): Uses ring signatures, stealth addresses, and confidential transactions to provide strong privacy guarantees by default.
• Zcash (ZEC): Offers optional privacy through zero-knowledge proofs called zk-SNARKs, allowing users to shield transaction details selectively.
• Dash (DASH): Provides a privacy feature called PrivateSend, which mixes coins to obfuscate transaction trails.

Characteristics

• Default or Optional Privacy: Some privacy coins enforce privacy by default (Monero), while others provide optional privacy features (Zcash).
• Regulatory Challenges: Due to concerns over money laundering and illicit use, privacy coins are often subject to regulatory restrictions and delistings from exchanges.
• Higher Transaction Complexity and Fees: Enhanced privacy features can result in larger transaction sizes, longer processing times, and higher fees compared to transparent cryptocurrencies.
• Niche but Important Role: Privacy coins fill a critical need for financial privacy and censorship resistance in the cryptocurrency ecosystem.

Meme Coins

Meme coins are cryptocurrencies that originate from internet culture, social media trends, or jokes, often without a traditional use case or technological innovation behind them. They typically gain popularity through viral marketing, celebrity endorsements, or online communities rather than intrinsic utility.

While meme coins can generate significant hype and speculative trading, they are generally considered highly volatile and risky investments. Despite this, some have achieved substantial market capitalization and widespread recognition, reflecting the power of social media and community-driven momentum in the crypto space.

Key Roles and Functions

• Community and Cultural Phenomenon: Meme coins often thrive on strong online communities that engage in collective promotion, meme sharing, and social media campaigns.
• Speculative Investment and Trading: Due to their popularity and volatility, meme coins attract traders aiming for quick profits based on hype cycles rather than fundamental value.
• Gateway to Crypto for New Users: The approachable and humorous nature of meme coins sometimes serves as an entry point for newcomers into cryptocurrency.
• Occasional Charitable or Promotional Uses: Some meme coin communities have organized charitable donations or partnerships, using their popularity for social causes.

Examples of Meme Coins

• Dogecoin (DOGE): The original meme coin, created as a joke based on the “Doge” meme featuring a Shiba Inu dog. It has gained mainstream attention through celebrity endorsements and community support.
• Shiba Inu (SHIB): Inspired by Dogecoin, SHIB brands itself as a “Dogecoin killer” and has built an extensive ecosystem including NFTs and decentralized exchanges.
• dogwifhat (WIF): A meme coin that rose to prominence due to its viral appeal and strong community presence. It gained traction as part of the Solana meme coin ecosystem, driven more by internet culture and speculative interest than utility or fundamentals.

Characteristics

• High Volatility and Risk: Prices of meme coins are often driven by hype and social sentiment, leading to sudden price surges and crashes.
• Limited or No Fundamental Use Case: Most meme coins do not offer unique technology or practical applications beyond community engagement and speculation.
• Community-Driven: Their value and longevity largely depend on active and engaged communities that drive awareness and adoption.
• Regulatory and Scam Risks: Due to lack of regulation and oversight, some meme coins have been associated with scams, “pump and dump” schemes, or unsustainable business models.

Conclusion

In summary, the diverse landscape of cryptocurrencies reflects a wide array of technological innovations, use cases, and market dynamics. From foundational native coins that power independent blockchains, to versatile tokens built on top of existing platforms, each type serves distinct functions within the digital economy. Altcoins push the boundaries of blockchain technology, while specialized categories such as stablecoins, privacy coins, CBDCs, and meme coins address specific needs ranging from price stability and privacy to regulatory compliance and community engagement. Understanding these classifications provides essential insight into how cryptocurrencies operate, evolve, and impact both financial systems and broader society. Together, these types form the complex ecosystem driving the ongoing transformation of money and digital assets worldwide.