When your crypto-curious cousin brags about investing in altcoins, someone else tweets about meme coins, and yet another insists stablecoins are the future of money, you may be left wondering: are they all talking about the same thing? Not quite.
While Bitcoin may still hog the limelight, the broader crypto world is bursting at the seams with tokens of all kinds: some sensible, some speculative, and some downright silly.
Here's how to tell them apart.
Stablecoins: The 'boring' guy who plays by the ‘rules’
If cryptocurrencies were people at a party, stablecoins would be the designated driver. Their job is to remain… well, stable. Pegged to traditional assets such as the US dollar or gold, they aim to offer the benefits of crypto (speed, low cost, decentralisation) without the notorious price swings.
Popular stablecoins include Tether (USDT) and USD Coin (USDC), each tied to the dollar. They’re widely used for trading on crypto exchanges, transferring money across borders, or parking funds during turbulent markets.
Think of them as digital dollars — not for wild speculation, but for financial plumbing.
Altcoins: Everyone who isn’t Bitcoin
The term ‘altcoin’ simply refers to any cryptocurrency that is not Bitcoin. That’s a wide array of digital currencies including everything from Ethereum and Solana to niche tokens powering gaming platforms or decentralised finance (DeFi) apps.
Altcoins often experiment with new tech, faster transaction speeds, or different governance models. Some, like Ethereum (ETH), are innovation powerhouses, while others are pale imitations hoping to ride the crypto wave.
Investors often look at altcoins for higher returns while taking higher risk.
Meme coins: Where online jokes turn into millions (well, sometimes)
Born out of online communities, meme coins are cryptocurrencies that started (and often remain) as jokes. Dogecoin, inspired by the Shiba Inu meme, famously caught Elon Musk’s eye and went from parody to profit.
Then came Shiba Inu, Pepecoin, Floki Inu and others — mostly driven by hype, humour, and a hefty dose of speculation. Unlike altcoins with serious tech ambitions, meme coins often lack fundamental utility.
They can skyrocket in value overnight thanks to viral social media hype, but just as quickly lose steam and crash, often leaving latecomers at a loss. They’re entertaining to watch and sometimes to hold but rarely backed by real-world utility or long-term value.