Crypto 101: Different Types of Cryptocurrency

Cryptocurrency is a hot topic these days, and it is not hard to see why! With its explosive growth and widespread adoption, there are now so many types of digital assets to choose from. If you are thinking about dealing with crypto, it is crucial to understand its different types and what sets them apart.

In this article, we will explore the world of crypto and help you get up to speed. We will cover coins and tokens, altcoins, stablecoins, NFTs, and CBDCs as the most widespread types. Whether you are a seasoned player or just starting out, we have got you covered with all the needed information. As a bonus, we have prepared a list of the most popular crypto in 2023.

Types of cryptocurrency

Cryptocurrencies are a diverse and swiftly evolving asset class, with a variety of different types and use cases. Now would be an appropriate moment to examine different types of crypto more closely, encompassing coins, tokens, altcoins, stablecoins, CBDCs, and NFTs.

Coins and tokens

When it comes to crypto, these are represented as two of the most commonly used types. In some way, you may be wondering - are they not the same? In general understanding, they are similar, but from the technical point of view, there are some important differences between them!

On one hand, coins refer to a type of digital currency that operates independently without the control of a central authority. People use them as a way to buy and sell things, or to save money, and they function on their own unique system called a blockchain network. Some well-known coins include Bitcoin, Ethereum, and so on.

On the other hand, tokens are digital assets created on top of a pre-existing blockchain network, like Ethereum or Tron. A range of purposes can be achieved through their utilization, including acting as representations of assets, functioning as a form of currency in a particular ecosystem, or providing authorization to specific services. Good examples are a lot of different ERC-20 tokens (Tether USD, USD Coin, etc.) on the Ethereum blockchain.

One of the vital distinctions between coins and tokens is their underlying technology. Coins operate on their own blockchain network, while tokens are built on top of an existing blockchain. Coins also tend to have a higher level of security and decentralization compared to tokens, since they do not rely on an existing blockchain network.

In terms of market value, coins generally have a higher market capitalization than tokens, as they are often more established and widely adopted. But do not discount tokens just yet! They can offer unique benefits and value propositions, such as access to specific services or rewards within a particular ecosystem.

So there you have it - the difference between coins and tokens in a nutshell! But we have more types of cryptocurrency to consider.


You may have heard of Bitcoin, but have you heard of altcoins? Altcoins, also known as alternative coins, are simply any digital asset that are not Bitcoin (BTC). Every altcoin present in the market today possesses distinct characteristics and features that set them apart from one another, considering the thousands of options available.

Altcoins can offer a range of benefits and advantages, such as faster transaction speeds, lower fees, and more advanced technology. Popular examples of altcoins include Ethereum, Litecoin, Ripple, and Binance Coin.

However, dealing with altcoins can be a high-risk, high-reward proposition. While some altcoins have seen enormous gains in value over the years, others have failed to gain traction or have even turned out to be scams.


Stablecoins are an interesting type of cryptocurrency because they are designed to maintain a steady value that is tied to fiat money, like the US dollar, or a commodity like gold. These digital assets, in contrast to conventional cryptocurrencies such as Bitcoin, provide the advantages of speedy and secure transactions without the unpredictability associated with price fluctuations.

There are different categories of stablecoins, including fiat-backed, commodity-backed, and algorithmic ones. Stablecoins backed by fiat are connected to a particular fiat currency, such as the US dollar, and generally supported by reserves of that currency that are held in a bank. Commodity-backed stablecoins, on the other hand, have a reserve of a commodity like gold. Algorithmic ones utilize sophisticated algorithms to maintain a stable price.

Stablecoins are useful for many purposes, such as making transactions or purchases without being concerned about unexpected price swings. They can also serve as a reliable store of value or a way to hedge against market instability. Popular stablecoins are USDT, USDC, and DAI. However, like with any crypto, there are concerns about the stability and security of stablecoins, as well as the potential for them to be used for illegal activities such as money laundering.

Central Bank Digital Currencies (CBDCs)

CBDCs are the newest kid on the block in the world of digital currencies. They are being introduced and supported by central banks, like the Federal Reserve or the European Central Bank, and are designed to function like physical currencies issued and backed by the government.

The principal objective of CBDCs is to furnish a safer and more effective mode of executing transactions and payments, simultaneously heightening transparency and accountability. CBDCs hold the potential to be quicker and less expensive for users by removing intermediaries such as banks or payment processors.

CBDCs are still in their early days and many countries are thinking about launching their own. If properly implemented, CBDCs could be a game-changer, enhancing monetary policy implementation, improving payment system efficiency, and increasing financial inclusion.

However, there are also some potential roadblocks and concerns. Issues of security and privacy must be addressed, and there's the potential that traditional financial institutions could be displaced. It remains to be seen whether CBDCs will be the cat’s meow or just another flash in the pan.

Non-Fungible Tokens (NFTs)

These days, NFTs are the talk of the town, representing unique digital assets like digital art, tweets, and video clips. Unlike other types of cryptocurrency that can be swapped for each other, NFTs are one-of-a-kind and indivisible, making them as rare as hen’s teeth.

NFTs use blockchain technology to verify their authenticity and ownership, making them both secure and transparent. Like any other asset, they can be bought, sold, and traded, but with the added benefit of being authenticated and truly unique.

NFTs have gained significant attention lately, with some astounding sales like a Beeple digital artwork selling for a jaw-dropping $69 million and a tweet by Jack Dorsey going for $2.9 million. Even musicians have caught on, using NFTs to distribute exclusive content and merchandise to their fans.

While NFTs offer some exciting possibilities, there are also concerns about their environmental impact and the potential for speculative bubbles. The creation and trading of NFTs require a significant amount of energy and computing power, which has sparked criticism from environmental groups. Additionally, there are worries that some NFT prices could be inflated by speculative hype rather than the true value of the underlying asset.

Top 5 cryptocurrencies in 2023

As the crypto market continues to evolve, it can be hard to keep up with the latest trends and determine which cryptocurrencies are worth knowing about. That is why we have put together this section to highlight the top 5 cryptocurrencies that are leading the market in 2023.

Bitcoin (BTC)

BTC is a digital currency that operates without the control of any central authority. It uses blockchain technology to record and verify transactions, making it both secure and transparent.

Since its debut in 2009, Bitcoin has become the most famous cryptocurrency, with a significant increase in value over the years, albeit surrounded by controversies. Transactions are checked by a network of computers to ensure they are legit and prevent fraud.

Ethereum (ETH)

ETH is another well-known decentralized digital currency that ranks second in terms of popularity and trust after Bitcoin. Its value has been subject to various factors over time, such as the market’s demand and supply, the development of new dApps on the Ethereum network, and the mining market situation (although the impact has been less significant since the transition to Proof-of-Stake consensus mechanism). ETH can be easily bought, sold, and stored in various wallets.

Tether (USDT)

USDT aims to maintain a stable value equivalent to the US dollar, making it a stablecoin. It is issued by Tether Limited, and its value is supported by reserves of fiat currency held in a bank account. Tether is commonly used for holding and transferring funds in the cryptocurrency market due to its stable value, but there have been concerns about its transparency and accuracy in the past.

Binance Coin (BNB)

BNB is a cryptocurrency that was launched by the Binance exchange in 2017. Binance Coin is built on the Ethereum blockchain and is primarily used as a means of payment for trading fees and accessing various services on the Binance platform.


USDC is another type of stablecoin pegged to the US dollar value and running on the Ethereum blockchain. The value of USDC is backed by reserves of US dollars held in a bank account. USDC is widely used for holding and transferring funds in the cryptocurrency market due to its stability and security.

It is audited regularly to ensure transparency and regulatory compliance and has been adopted by major financial institutions as a way to settle cryptocurrency transactions.

Guide for beginners: How to buy crypto with Utorg?

We understand that the world of cryptocurrencies can be overwhelming, but do not worry! We are here to guide you through the process in two simple steps.

  1. Create an order. Select a currency pair you are interested in, how much you want to buy, and your crypto wallet address. We will take it from there.
  2. Make a payment. Choose your preferred payment method (like Google Pay or Apple Pay) and complete the transaction. It is that easy!

If you are a new user, we will kindly ask you to pass our identity verification process. Do not worry, this is a standard procedure for all new crypto users and typically takes only around 3 minutes of your time.

For your convenience, we have also prepared a video tutorial on how to buy cryptocurrencies with a bank card. You can watch it here:


1. How many types of crypto are there?

There are different types of cryptocurrencies, including Bitcoin and altcoins, tokens, stablecoins, Central Bank Digital Currencies (CBDCs), Non-Fungible Tokens (NFTs), and more. New types of cryptocurrencies may emerge as the technology continues to evolve.

2. What are the main differences between Bitcoin, altcoins, and tokens?

Bitcoin is the original cryptocurrency, based on decentralized blockchain technology and consensus mechanisms. Altcoins are alternative cryptocurrencies that emerged after Bitcoin, offering different features and improvements. Tokens, on the other hand, are digital assets built on top of existing blockchain networks, representing a wide range of utilities like voting rights or access to a platform's services.

3. How do stablecoins maintain their value?

Stablecoins maintain their value by being pegged to a specific asset, such as fiat currency or gold. They utilize various mechanisms, including collateral reserves or algorithms, to ensure their value remains stable in relation to the underlying asset.

4. How do I buy cryptocurrencies like Bitcoin, altcoins, or tokens?

You can use Utorg and buy Bitcoin, altcoins, or tokens in a matter of a twinkling eye. Just set up your order and make a payment, using the most suitable payment method (Apple Pay, Google Pay, a credit/debit card, or others). Two easy steps and crypto will be in your crypto wallet.