Types of cryptocurrency:
what’s money, and what’s just code.
There are tens of thousands of coins with all kinds of names. You don’t need to know them all, just the main categories, so you know what’s worth studying and what to avoid.
Crypto, virtual currency, digital currency: same thing?
| Term | Usually means | Examples |
|---|---|---|
| Cryptocurrency | Coins secured by cryptography with no central issuer | Bitcoin, Ether, USDT |
| Virtual currency | The term many regulators, including China’s, use for the same thing | Same as above |
| Digital currency | Broader; includes central-bank digital money | Digital yuan, bitcoin |
The one to get right: China’s digital yuan is legal tender; bitcoin is not.
Digital yuan vs bitcoin: what’s the difference?
The digital yuan (e-CNY) is issued by the People’s Bank of China and is simply renminbi in digital form. According to People’s Daily, from January 1, 2026, verified e-CNY wallets earn interest at the demand-deposit rate; anonymous wallets don’t.
| Digital yuan | Bitcoin | |
|---|---|---|
| Issuer | People’s Bank of China | None |
| Legal status | Legal tender | Not legal tender in China |
| Price | 1 yuan is 1 yuan | Moves a lot every day |
| Interest | Verified wallets earn demand-deposit interest | None built in |
| Can you trade it for profit? | No, it never changes value | Yes, on exchanges |
Anyone telling you to “buy digital yuan coins before they go up” is running a scam. The digital yuan doesn’t appreciate and there’s no coin to buy.
Majors, stablecoins, exchange tokens, altcoins: how they differ
| Category | What it is | Examples | Risk |
|---|---|---|---|
| Majors | Largest, oldest, most traded | BTC, ETH | Volatile but liquid |
| Stablecoins | Pegged to the dollar or other currencies | USDT, USDC | Issuer and reserve risk |
| Exchange tokens | Issued by an exchange for fee discounts and more | OKB | Tied to the exchange’s business |
| Altcoins | Every coin other than bitcoin | SOL, DOGE and thousands more | The smaller, the wilder |
| Meme coins | Driven by hype and community | DOGE, PEPE | Extreme; can go to zero |
Coin vs token: a “coin” is a chain’s native asset, like BTC or ETH; a “token” lives on someone else’s chain, like USDT on Ethereum. Remembering this makes choosing withdrawal networks much less confusing.
How to spot worthless coins
Some coins have no real use and exist only to be pumped: the team pushes the price up, then sells to latecomers. Warning signs:
- Only tradable on obscure platforms or the project’s own app; major exchanges don’t list it.
- The pitch is all about “100x” and “listing on a big exchange soon”, with no clear use.
- Rewards depend on recruiting, or your coins are locked for a long time.
- Anonymous team, copy-pasted white paper, a website that hasn’t changed in months.
A safer habit: beginners should stick to coins that have been on major exchanges for a while and rank high by market cap. OKX announces new listings in advance; if a coin is only available in one place, ask why.
Ready to open an account? Enter code OK66688 at sign-up for 20% off every trading fee, for life.
What are NFTs? What is DeFi?
NFTs (non-fungible tokens) are unique on-chain certificates, often used for digital art, profile pictures or tickets. Each is one of a kind and can’t be split like bitcoin. They boomed around 2021; most have since lost over 90% of their value.
DeFi (decentralized finance) means lending, swapping and earning through smart contracts instead of banks or exchanges. Yields can be higher, but so are the risks of bugs, stolen approvals and teams that disappear.
How to read crypto market cap rankings
Market cap = price × circulating supply. It tells you how “big” a coin is. The top ten are usually bitcoin, ether, USDT, USDC and a few large chains.
- Ignore unit price: a coin worth a fraction of a cent isn’t cheap if there are hundreds of billions of them.
- Check supply: large upcoming unlocks can push the price down.
- Check volume: with thin volume you may not be able to sell when you want.
Types of crypto
FAQ.
01How many cryptocurrencies are there?
Tens of thousands are publicly listed somewhere, but most barely trade or are abandoned. Only a few dozen are worth a beginner’s attention.
02Is USDT a cryptocurrency?
Yes. USDT is a US dollar stablecoin issued by Tether, designed so 1 USDT ≈ 1 USD. Regulators treat it as crypto.
03Can I buy bitcoin with the digital yuan?
No. The digital yuan is legal tender, and regulated channels in China don’t offer ways to buy crypto with renminbi.
04Should I avoid all altcoins?
“Altcoin” just means any coin that isn’t bitcoin, including big ones like ether and SOL. Judge by market cap, use, where it’s listed and liquidity, not by the label.
05Why do some coins cost less than a cent?
Because enormous amounts were issued. A low price isn’t a bargain; look at market cap. For a sub-cent coin to reach $1, it might need to be bigger than bitcoin.
06Which coins should a beginner learn first?
Bitcoin and USDT. Understand one major coin and one stablecoin before exploring others.
Finished this chapter?
Read the next one.
Understand bitcoin and blockchain first, then the types of coins and mining, then how money is made, cashed out and kept safe. Each chapter takes about ten minutes.
What is bitcoin?
Who created it, why it has value, how many exist, what one costs today, and whether it’s a scam.
Chapter 2 · Blockchain in plain EnglishWhat is blockchain?
Blockchain, decentralization, public chains, smart contracts, gas fees and wallet addresses, explained with a shared ledger.
Chapter 4 · Is Pi Network legit?What is crypto mining?
What miners actually do, whether you can mine at home, where it’s banned, and the truth about phone mining and Pi Network.
Chapter 5 · Whose money are you making?Can you make money with crypto?
Where crypto profits come from, why most beginners lose, and how to take part without getting hurt.
Chapter 6 · Bank account frozen after cryptoHow to cash out USDT
Selling USDT for local currency via P2P, why bank accounts get frozen, and what to do if yours is.
Chapter 7 · Exchange paused withdrawalsWhat if a crypto exchange goes bust?
What CoinEx’s shutdown and the Bitget hack mean for ordinary users, and how to judge an exchange.
Learn first, then start small, and enter OK66688 when you sign up.
Get to know buying and selling with a small amount. Every trade costs 20% less, so practice is cheaper.