Recently, many beginners have been asking me about the different types of cryptocurrencies. So I decided to organize a quick overview of the main ones to help everyone avoid getting confused by the various project names.

Let's start with Bitcoin. It’s the pioneer of the entire blockchain world and is widely recognized as the most representative cryptocurrency. It’s called digital gold, mainly used for store of value. Over the years, institutional investors have increasingly recognized its worth.

Next is Ethereum, which is much more powerful. It’s not just a simple currency but an ecosystem capable of running smart contracts, supporting various decentralized applications, DeFi protocols, and NFT projects. If Bitcoin is digital gold, then Ethereum is the infrastructure of the entire crypto universe.

Stablecoins are also very important. For example, USDT essentially acts as a bridge between fiat currency and crypto assets. 1 USDT is roughly equal to 1 USD. Using it for transactions makes conversions very convenient and significantly reduces volatility risk.

Besides these major projects, there are many other cryptocurrencies worth paying attention to. For instance, Litecoin has a loyal following from early on, and native tokens of various blockchains like SOL and BSC each have their own roles within their ecosystems.

Understanding the characteristics and use cases of different cryptocurrencies can really help you make more rational decisions when trading on exchanges. If you’re also tracking these assets on Gate, it’s a good idea to start with these main coins and gradually get a clearer picture of the overall market.