Understanding the main types of cryptocurrencies in 2025
Cryptocurrencies are everywhere. In the media, in group chats, and of course in investor portfolios. But despite their growing popularity, one big confusion remains: what are cryptos, really? Currencies? Assets? Utility tokens? Memes? Too often, they’re all lumped together. At Coinstancy, we believe it’s time to bring some clarity.
Why reclassify cryptocurrencies?
When people talk about Bitcoin, Ethereum, or Dogecoin, they all use the term “cryptocurrency.” But that’s like saying apples, bananas, and avocados are all just fruits — technically true, but oversimplified. In finance, proper categorization helps us assess risks, anticipate returns, and build solid strategies.
To reclassify crypto means:
- Understanding its real function
- Building smart regulatory frameworks
- Guiding investors
- Clarifying public debates
The major types of crypto assets
Here’s a clearer breakdown of crypto categories today:
1. Payment cryptocurrencies 💸
These are the OGs. Their goal is to be used as money — for transactions or storing value. Examples:
- Bitcoin (BTC): digital gold
- Litecoin (LTC): faster Bitcoin
- Bitcoin Cash (BCH): optimized for daily use
Their main use: transferring value, without banks.
2. Stablecoins 🪙
Their value is pegged to fiat currencies like the euro or dollar. Examples:
- USDT (Tether)
- USDC (Circle)
- DAI (MakerDAO)
They’re used to:
- Avoid volatility
- Transfer money fast
- Earn yields in DeFi
Coinstancy lets you earn up to 7% per year on stablecoins.
3. Utility tokens
They act as access passes to use a platform or service. Examples:
- BNB (Binance Coin): trading fee discounts
- UNI (Uniswap): governance and platform use
- GRT (The Graph): blockchain data querying
They create value through utility, not currency use.
4. Governance tokens
A subtype of utility tokens with voting power in decentralized protocols.
Examples:
- AAVE, COMP, CRV
Holders vote on:
- Protocol settings
- Upgrades
- Treasury allocation
It’s blockchain democracy, DAO-style.
5. NFTs (non-fungible tokens) 🎨
A completely different game. NFTs represent unique assets, linked to art, music, collectibles, or identity.
Examples:
- A Beeple artwork
- Virtual land in the metaverse
- A game card on Sorare
Their value is subjective and speculative, but some see them as the future of digital luxury.
6. Memecoins 🐶
Yep, Dogecoin and friends (Shiba Inu, PEPE…) deserve their own category. Their value comes from community hype, not tech.
They may seem silly — but have delivered crazy returns. Highly speculative and not for the faint of heart.
7. Security tokens
The closest to traditional finance. They represent real-world asset rights (stocks, bonds, real estate).
Still niche and regulated, but with huge potential for economy-wide tokenization.
What this means for investors
Knowing a token’s category helps you:
- Understand its yield potential
- Manage your risk level
- Diversify smartly
- Choose the right analysis method (fundamental, technical, community-based)
At Coinstancy, we use this framework to tailor strategies, whether staking, DCA, or stablecoin yields.
Toward smarter regulation?
Regulators need clarity too. The EU’s MiCA framework is a good start, recognizing stablecoins and utility tokens as different.
Reclassification supports smart crypto regulation that protects users and fosters innovation.
In conclusion
Cryptos are not all the same. Understanding them means going beyond hype and FOMO, and building real investment strategies.
At Coinstancy, we believe in a clear, structured and user-friendly approach to crypto — and that starts with smart token reclassification. 🚀