Cryptocurrencies 101: What's the difference and which one is right for you?

Let's be clear: the crypto world is not just Bitcoin. There are various types of digital assets, each with its own role and function. Understanding the difference is key before putting your money in.

The three main categories

Stablecoins: Your safe harbor They are cryptocurrencies “pegged” to something real, like the dollar or gold, to prevent them from fluctuating wildly. USDT ( backed by USD), PAXG ( backed by gold), and DAI ( backed by cryptos) are examples. Ideal if you want to reduce risk but stay in the crypto ecosystem.

Tokens: Employees from other blockchains They do not have their own network, they live on existing platforms like Ethereum, Solana, or BSC. They represent access, rights, or functions within a project. Uniswap (UNI) gives you voting power in a decentralized exchange, Chainlink (LINK) is the ticket to use reliable data oracles. They are the majority of what you see in the market.

Native cryptocurrencies: The bosses They have their own blockchain, they are independent. Bitcoin (BTC) revolutionized everything with peer-to-peer payments without intermediaries. Ethereum (ETH) lifted the entire ecosystem of smart contracts. Cardano (ADA) came with more scalable proof-of-stake technology. They are the heavyweights.

The million-dollar question: Which one should I buy?

It depends on your goal:

• You want stability: Stablecoins
• Are you looking to participate in specific projects: Tokens
• Do you believe in long-term foundational technology: native cryptocurrencies

There is no universal winner. Each one has its purpose. The important thing is to understand what you are buying, not just the price.