Bitcoin (BTC) — digital gold
Bitcoin was the first cryptocurrency, created in 2009. It's mostly used as a store of value — people buy and hold it, hoping it will go up in value over time. There is a hard limit of 21 million Bitcoin that will ever exist.
Ethereum (ETH) — a programmable computer
Ethereum is a platform that lets people build applications on top of it — like an app store on your phone, but for crypto. It also supports smart contracts: code that runs automatically when certain conditions are met. Used for NFTs, decentralised finance, games and much more.
Stablecoins — digital dollars
Stablecoins are cryptocurrencies tied to real-world money, usually the US dollar. The most popular ones (like USDT or USDC) are designed to always be worth US$1. They're the calm, steady cousin in the crypto family.
Altcoins — the alternatives
Altcoins are any cryptocurrency that isn't Bitcoin. Some are big and well-established (like Solana or Cardano); others are small and experimental.
Quick analogy: Bitcoin is gold. Ethereum is a smartphone — a platform for apps. Stablecoins are digital cash. Altcoins are the many other experiments that followed.
Which should a beginner start with?
For most beginners, Bitcoin or Ethereum are the safest starting points. They are the most established, most liquid, and most widely accepted. Avoid small altcoins until you have much more experience.
Test yourself
Select your answer for each question, then see if you're right.
Q1. What is the best analogy for Bitcoin?
Bitcoin is often called 'digital gold' because, like gold, it has a limited supply and people tend to hold it as a store of value.
Q2. What makes Ethereum different from Bitcoin?
Ethereum is both a currency (ETH) and a platform. Developers build applications and smart contracts on top of it -- things like NFTs, DeFi apps and games.
Q3. What is the key feature of a Stablecoin?
Stablecoins like USDT and USDC are designed to always be worth $1, making them useful for trading or saving without price swings.
Q4. What does 'Altcoin' mean?
Altcoin simply means 'alternative coin' -- any cryptocurrency other than Bitcoin, from well-established Ethereum to tiny experimental tokens.