Main Types of Cryptocurrencies

Dec 14, 2025 - 10:23

Until recently, the term “cryptocurrency” was associated almost exclusively with Bitcoin. At that time, only one major cryptocurrency existed, while alternative coins were either non-existent or too new and niche to gain serious attention.

Over time, the cryptocurrency market has expanded significantly, giving rise to new categories and directions. Today, every crypto exchange or decentralized finance (DeFi) service has its own token, and every blockchain operates with at least one, often several, cryptocurrencies. To better navigate this diversity, let us review the main types of cryptocurrencies.

Bitcoin

Bitcoin (BTC), created in 2009 by Satoshi Nakamoto, was designed as a fully digital peer-to-peer payment system. The network is maintained by miners who receive newly issued bitcoins as rewards.

Bitcoin’s total supply is limited to 21 million coins, with the last coin expected to be mined in 2140. Due to its scarcity, Bitcoin is often referred to as “digital gold.”

Altcoins

Altcoins include all cryptocurrencies other than Bitcoin. They aim to improve blockchain functionality, transaction speed, scalability, or introduce innovative technologies.

Ethereum (ETH)

Launched in 2015 by Vitalik Buterin, Ethereum introduced smart contracts—self-executing agreements that operate without intermediaries. The Ethereum Virtual Machine (EVM) supports decentralized applications and DeFi ecosystems.

Litecoin (LTC)

Created in 2011 by Charlie Lee, Litecoin is a Bitcoin fork that uses the Scrypt hashing algorithm, enabling faster transaction processing and making it suitable for everyday payments.

Ripple (XRP)

Ripple (XRP) focuses on fast and low-cost international money transfers. Founded in 2012, it uses a unique consensus mechanism that ensures speed and energy efficiency. Ripple cooperates with numerous financial institutions worldwide.

Cardano (ADA)

Founded by Charles Hoskinson, Cardano employs a scientific approach to blockchain development. Its dual-layer architecture enhances security and scalability by separating transaction processing from smart contracts.

Polkadot (DOT)

Developed by Gavin Wood, Polkadot enables interoperability between different blockchains. Its native token DOT is used for governance, staking, and network security.