Types of cryptocurrencies and their features: from Bitcoin to memecoins

Cryptocurrency is digital money on the blockchain. Transfers go directly between people, without banks or intermediaries. Records of transactions are stored in a distributed network and cannot be forged. By 2025, cryptocurrencies have become a familiar tool: they are used for transfers, storage, investments, and even entertainment. But the market is huge, and it’s easy for a beginner to get confused.

In this article we’ll break down:

• what types of cryptocurrencies exist and how they differ;
• which cryptocurrencies a beginner should choose;
• how fees work and where you can save money;
• mistakes that cause people to lose money.

Bitcoin became the first cryptocurrency in 2009. It proved that it was possible to create money without the state. After that, hundreds of new projects appeared: some solve practical problems, others simply play on public interest.

When Bitcoin first appeared, it was the only one. Today, there are thousands of cryptocurrencies, and understanding the difference between them is not easy. To make it simpler, coins are divided into groups. Let’s look at how the main types differ and where they are used.

• Limited issuance — a maximum of 21 million coins.
• Used as a long-term store of value.
• Bitcoin’s price influences the entire market: if it falls, other coins almost always follow.

Bitcoin is not suitable for fast transfers. Fees and confirmation times are higher than in other networks.

All coins other than Bitcoin are called altcoins. The most notable:

• Ethereum — smart contracts, NFT, DeFi.
• Cardano — focus on sustainability and research.
• Solana — high transaction speed.

What to look for when choosing an altcoin:

• capitalization and trading volumes;
• network activity and number of developers;
• real usefulness of the project.

If a coin doesn’t solve a problem and isn’t used in real services — that’s a red flag.

Stablecoins were created to avoid price volatility. They are worth about $1 and convenient for transfers.

• USDT (Tether): the most widely used, accepted by almost every exchange.
• USDC (Circle): more transparent, but the issuer can freeze an address.
• DAI: decentralized, operates via smart contracts and crypto collateral.

Example: A freelancer receives $1,000 in USDT TRC-20. The money arrives instantly, without the risk of losing to volatility.

Dogecoin and Shiba Inu started as jokes but became popular assets. Their price is sustained only by community interest.

• can rise 10x in a week;
• just as quickly lose value.

This is more of a gamble than an investment.

Shitcoins are projects with no utility or technology. They are issued for speculation, and almost all of them go to zero.

Tip: If a coin is heavily promoted but has no technology, no team, and no exchange listings — it’s a shitcoin.

Tokens differ from coins in that they don’t have their own blockchain. They are issued on existing networks and operate according to specific standards.

• ERC-20 — token standard on the Ethereum network. Thousands of projects are built on it: from DeFi apps to NFTs.
• TRC-20 tokens — a similar standard on the Tron network. Its main advantage is relatively low fees (compared to Ethereum) and transaction speed. That’s why USDT in TRC-20 format became one of the most popular tools for transfers.

Unlike Bitcoin, which exists independently, tokens depend on the blockchain they are issued on. But this is what makes them versatile: tokens are easy to integrate into wallets, exchanges, and applications.

*Prices are at the time of writing; current crypto rates — on CoinMarketCap.

For a long time, Tron was the cheapest transfer solution. A few years ago, sending USDT TRC-20 cost just a few cents, making the network popular in countries where cryptocurrency is used for everyday payments. But the situation has changed: with growing user numbers, TRX fees have risen noticeably.

Today, transfers cost more and depend on the wallet’s state:

• To a wallet with an existing USDT balance — the fee is 6.77 TRX. At $0.34 per TRX, that’s about $2.3.
• To an empty wallet (no USDT) — the fee is higher, 13.37 TRX, i.e. over $4.5.

For those transferring money occasionally, this is not critical. But with regular transfers — for example, several times a day — expenses become significant. Over a month, the amount adds up to the equivalent of a separate fiat payment.

The official way to access blockchain resources is to freeze TRX for energy. In practice, this option has many nuances:

• for 2–3 transfers per day you need to freeze a large amount of TRX;
• buying TRX just for staking at the current rate is unprofitable;
• when unstaking, coins are locked for 14 days, and no resources are accrued;
• TRX is volatile, and there is a risk of losses.

Formally, staking works, but for regular users it’s inconvenient: funds are frozen, there’s no flexibility, and exchange-rate risks remain.

An alternative is renting resources. Here, you don’t need to buy or freeze TRX, you just pay for usage. Various services on the market automate the process.

Example: Tron Pool Energy
Such a service solves several problems at once:

• fees are reduced many times — you pay less for each transfer;
• no need to buy and hold TRX with unlimited energy connection;
• flexible expense management: pay only when making transfers.

For businesses and freelancers this is especially important: transfers become predictable in cost and don’t require capital to be frozen.

Cryptocurrencies provide freedom, but risks come with it.

Main threats:

• fake tokens and scam projects;
• counterfeit apps and phishing sites;
• loss of private keys or seed phrases.

How to protect yourself:

• download wallets only from official websites;
• store your seed phrase offline;
• verify tokens by contract address;
• don’t keep large amounts on an exchange.

Important: in some countries, cryptocurrency transactions are subject to taxation. Before transfers and investments, check the rules in your region.

Starting with crypto is best done by understanding your goals. Your choice of coin and level of risk depend on them.

• For long-term investments, proven assets like Bitcoin and Ethereum are suitable. They are volatile, but their liquidity has stood the test of time.
• For storing capital and everyday payments, stablecoins are the most convenient. The optimal option is USDT on the Tron network (TRC-20): fixed rate, transactions in seconds.
• For interest in technology, you can look at major altcoins in the top-10, such as Cardano or Solana. It’s important to choose those backed by real projects and active communities.
• For gambling spirit, there are memecoins. But only invest an amount you can afford to lose without affecting your budget.

The main mistake beginners make is buying “trendy coins” just because they’re in the news. Without understanding the technology and utility, such investments almost always end in losses.

In 2025, the cryptocurrency market is divided into several groups: from Bitcoin and altcoins to stablecoins, memecoins, and tokens.

• Bitcoin — storage.
• Stablecoins — transfers.
• Altcoins — technology.
• Memecoins — gambling.

Beginners should start with stablecoins and TRC-20 tokens: they are simple, convenient, and predictable. For those who transfer money regularly, Tron’s energy rental services will help reduce USDT fees without extra hassle.

Cryptocurrency opens up new opportunities but requires knowledge and caution.