For newcomers who have just entered the space, they will definitely ask questions like 'What is cryptocurrency?' With so much information online, there’s Bitcoin, then Ethereum, and there are meme coins, L1, L2, etc., with countless terms. Where should one start learning?
This article will explain in the simplest way what exactly cryptocurrencies are and what mainstream categories exist in the market!
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What is virtual currency: cryptocurrency built on blockchain.
The so-called 'cryptocurrency' and 'virtual currency' actually refer to the same thing; both are digital assets created through blockchain technology.
Here, I won't go into too much technical detail but will explain in the simplest terms.
What people commonly refer to as 'virtual currency' = 'cryptocurrency'. Some also call it virtual assets, digital currency, etc. In English, it’s Crypto, or some coin, some token—referring to similar things.
These cryptocurrencies are all built on 'blockchain technology'. So coins like Line Points issued by LINE, and Tian Coins from Heaven, although they are also 'virtual', are not what people in the cryptocurrency space typically call cryptocurrencies. However, because the term 'virtual currency' is too broad, people in the crypto space prefer to call it 'cryptocurrency'.
What are 'mainstream coins' in cryptocurrency?
The so-called mainstream coins refer to those virtual currencies with a large market capitalization, such as $BTC (Bitcoin), $ETH (Ethereum), XRP (Ripple), USDT (Tether), $BNB (Binance Coin), etc.
The market capitalization of these coins (circulation * market price) is relatively high, so they are considered more 'mainstream', hence they are commonly referred to as mainstream coins. Mainstream coins mean just that, and the coins on the mainstream list belong to various different categories.
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What are 'altcoins' in cryptocurrency?
In traditional thinking, there is only one authentic cryptocurrency: Bitcoin (BTC).
Therefore, all coins other than Bitcoin, even the second-largest market cap ETH, are often referred to as altcoins.
The term altcoin is not necessarily derogatory; it simply refers to coins other than Bitcoin.
But this definition has slowly changed; now (2025) when talking about altcoins, it refers more to coins that are outside of mainstream coins. When people talk about altcoins, it may refer to those with very small market capitalizations, small coins that have just been issued.
What are 'meme coins' in cryptocurrency?
Many cryptocurrencies have practical uses, such as native tokens on certain blockchains. For example, the Ethereum blockchain relies on Ether to function, and the Solana chain relies on the SOL coin to operate.
Additionally, some coins are used as game tokens in blockchain games. In short, many coins indeed have their uses.
However, a 'meme coin' is a coin that has no practical use and is purely for humor, focusing on a sense of 'meme'.
Such as Dogecoin, Pepe, Shiba Inu, and even the Trump coin released by former President Trump recently, all promote a coin with no use, purely for humor.
Although they have no practical use, these meme coins often have high market capitalizations due to high volume and hype.
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What are 'public chain coins' in cryptocurrency?
What is cryptocurrency? It is a coin built on blockchain technology.
But 'blockchain' comes in many types, with various chains like Ethereum, Solana, Avalanche, etc.
These 'chains' are decentralized, so they require various nodes to operate, but why would anyone want to be a node? Why maintain the operation of these chains?
Because, as long as you are willing to be a node, they will issue coins to you as a reward. What coins? They are public chain coins; for example, ETH, SOL, AVAX are the corresponding coins of these chains.
These coins are the 'native tokens' that underlie the operation of this blockchain.
What are 'stablecoins' in cryptocurrency?
The so-called 'stablecoin' refers to cryptocurrencies pegged to fiat currencies, such as USDT and USDC.
One USDT is one dollar, one USDC is one dollar, and there are many stablecoins pegged to fiat currencies.
The importance of stablecoins lies in the fact that regardless of any cryptocurrency, you always need to know how much it is equivalent to in dollars! After all, it’s hard to directly buy lunch with BTC; you still need to convert it to fiat to make purchases.
A 'stablecoin' is a type of cryptocurrency used to price other cryptocurrencies.
So BTC/USDT refers to how much USDT one BTC is equivalent to, which means how much one Bitcoin is equivalent to in dollars.
What other cryptocurrencies are there?
In addition to the various cryptocurrencies mentioned above, there are many other types of virtual currencies, such as game coins (used for blockchain games), platform coins (used on cryptocurrency exchanges), fan tokens (supporting teams), and RWA tokens pegged to physical assets, etc.
Due to the rapid development of cryptocurrencies, the speed at which these tokens are increasing is very fast, and new types of virtual currencies frequently appear. So when someone asks, 'What are virtual currencies?' it is quite difficult to provide an accurate answer.
In summary: So what is cryptocurrency?
Finally, to summarize for everyone, what exactly are virtual currencies? What is cryptocurrency?
The so-called virtual currency refers to cryptocurrencies built on blockchain technology, and there are many classifications within it, such as stablecoins, public chain coins, game coins, meme coins, etc.
Among these cryptocurrencies, those that are well-known are called mainstream coins; those that are less popular (or outside of Bitcoin) are called altcoins, but they are all cryptocurrencies, also called crypto, which are essentially the same thing.
These cryptocurrencies can be purchased on cryptocurrency exchanges. Through the Binance registration link below, you can register on the world's largest cryptocurrency exchange and enjoy the highest transaction fee rebates across the network. Other places cannot offer better discounts, and if you register directly on the official website, you won't get any discounts!
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