Types of Cryptocurrencies: Bitcoin, Altcoins, & Stablecoins Explained

If crypto still feels like a confusing, buzzword-loaded black hole, don’t worry, you’re not alone. Most beginners feel totally lost trying to decode terms like altcoins vs stable coins or even wrap their heads around what the types of cryptocurrency are. 

That’s exactly why this guide exists. We're cutting through the noise and giving you real, clear explanations that anyone can understand, whether you're just crypto-curious or finally ready to get in the game. 

We’ll break down the core differences between Bitcoin vs altcoins, answer questions like “what are stablecoins?”, and show you how tools like Plus Wallet, the best crypto wallet for multi-chain asset management, can help you move smarter, not harder, in the wild world of Web3. 

Let’s get into it.

The 3 Core Types of Cryptocurrency (Explained Without the Jargon)

So, what are the types of cryptocurrency? Broadly speaking, there are three:

1. Bitcoin: The first, the biggest, the most well-known. Bitcoin is a digital asset used mainly as a store of value, kind of like gold, but online. It’s decentralized, meaning no one controls it, and it’s known for its rock-solid security. It's not super fast or feature-rich, but people trust it.

2. Altcoins: This just means any crypto that isn’t Bitcoin. Some altcoins improve on Bitcoin’s weaknesses, others power smart contracts, decentralized apps (dApps), or entire financial ecosystems. Think Ethereum blockchain, BNB Smart Chain (BSC) crypto, Solana cryptocurrency, TRON network, and Polygon blockchain, each with its own use case.

3. Stablecoins: Designed for stability. Stablecoins are pegged to things like the U.S. dollar or gold. Unlike Bitcoin or altcoins, their price barely moves, which makes them great for transactions, saving, and trading.

Understanding the differences between these types of cryptocurrency is your first step to navigating crypto like a pro.

Bitcoin vs Altcoins: What’s the Real Difference?

It’s one of the most common beginner questions: what’s better, Bitcoin or altcoins? The truth is, it depends on what you're trying to do.

Bitcoin is great if you want something simple, secure, and built to hold. It’s not ideal for fast transactions or building apps on top of, but it’s incredibly reliable and widely accepted.

Altcoins, on the other hand, open up way more functionality. Want to interact with smart contracts? Earn yield from DeFi platforms? Use crypto in games or art (NFTs)? Altcoins are where that innovation lives.

Most serious crypto users end up holding both. And if you use a multi-chain crypto wallet like Plus Wallet, managing and swapping between Bitcoin and altcoins is seamless. Why pick sides when you can diversify?

What Are Altcoins? + The Top Altcoins in 2025

Still wondering what altcoins are? In short: they’re everything other than Bitcoin. That’s a big club, but here are some of the major players you’ll want to know about in 2025:

• Ethereum (ETH): The first smart contract platform. It's home to most DeFi apps and NFTs.
• BNB Smart Chain (BSC): Fast and low-cost, making it a favorite for developers and traders alike.
• Solana (SOL): Known for blazing-fast transactions, perfect for high-performance apps.
• TRON network (TRON): Optimized for sharing content and sending stablecoins cheaply.
• Polygon (MATIC): A layer-2 scaling solution for Ethereum that brings low fees and fast speeds.

Altcoins offer huge potential, but they also come with risk. That’s why using the best crypto wallet to manage, monitor, and rebalance your portfolio is key. Enter: Plus Wallet, your go-to multi-chain crypto wallet and multi-chain assets organizer.

What Are Stablecoins? Stablecoins Explained Simply

Let’s face it: crypto is known for wild price swings. That’s where stablecoins come in.

Stablecoins are a type of cryptocurrency that stay (mostly) stable in price. They’re typically tied to a real-world asset like the U.S. dollar. That means 1 USDT = $1 (usually).

There are a few flavors:

• Fiat-backed (Like USDT or USDC): Each coin is backed by real dollars in a bank account.
• Crypto-backed (Like DAI): Backed by other cryptocurrencies, often on the Ethereum blockchain.
• Algorithmic (Like FRAX): Uses math and smart contracts to maintain a stable price.

Stablecoins are essential for:

• Protecting your funds from market volatility.
• Making payments without fees going crazy.
• Moving funds between blockchains using cross-chain swapping.

They’re a must-have in any crypto toolkit, and Plus Wallet makes it easy to manage top stable coins like USDT, DAI, and USDC across multiple chains.

Altcoins vs Stable Coins: What’s the Smarter Move?

Think of altcoins as your growth assets and stablecoins as your safety net.

Altcoins give you access to innovation and higher earning potential, but they can crash just as fast as they moon. Meanwhile, stablecoins offer price stability, which is great when the market gets shaky or you’re just trying to make a fast, low-cost transfer.

Here’s the move:

• Hold altcoins like Ethereum or Solana when you want exposure to growth.
• Park funds in stablecoins like USDT when markets turn volatile.
• Use a multi-chain crypto wallet like Plus Wallet to move effortlessly between the two.

The bottom line? You probably need both. But how much of each depends on your goals.

5 Key Blockchains That Matter Right Now

If you’re investing in altcoins or stablecoins, the blockchain they live on matters. Here’s where the action is in 2025:

• Ethereum (ETH): Still the king of DeFi and smart contracts.
• BNB Smart Chain (BSC): Great for low-cost, high-volume activity.
• Solana (SOL): Designed for scale, speed, and Web3 gaming.
• TRON network (TRON): Efficient and ideal for transferring stablecoins.
• Polygon (MATIC): Helps Ethereum go faster and cheaper.

These chains are powering some of the top altcoins in 2025, and Plus Wallet supports all of them. So no matter which ecosystem you're exploring, you’re covered.

How to Actually Manage All This? Tools You Need

Here’s the not-so-fun truth: managing different types of cryptocurrency across different chains gets overwhelming fast. That’s where the best crypto wallet comes in.

Plus Wallet isn’t just another crypto app. It’s a powerful multi-chain crypto wallet that helps you:

• Track Bitcoin, altcoins, and stablecoins all in one place.
• Swap across chains with just a few taps (no bridges or extra fees).
• Stay in control with secure, self-custodial asset storage.

Whether you’re just starting or scaling up, Plus Wallet is your personal crypto HQ.

Frequently Asked Questions (FAQ)

Q: What are the types of cryptocurrency? 

Bitcoin, altcoins (like Ethereum and Solana), and stablecoins (like USDT and DAI). Each one has a different purpose.

Q: What are stablecoins used for? 

They help reduce volatility, speed up transactions, and make crypto more usable for real-world payments and DeFi.

Q: What’s the safest type of cryptocurrency? 

Stablecoins are less volatile. But safety also depends on how and where you store your coins. Always use a trusted multi-chain crypto wallet like Plus Wallet.

Q: Can I use one wallet for everything? 

Yes. A multi-chain assets organizer like Plus Wallet lets you manage Bitcoin, altcoins, and stablecoins across Ethereum, Solana, TRON, and more.

Q: What’s the best altcoin in 2025? 

Depends on your goals, but Ethereum, Polygon, and Solana are among the top altcoins to watch.

Conclusion: Crypto Doesn’t Have to Be Complicated

You don’t need to know every technical detail to be smart with crypto. Just understand the basics: what are altcoins, what are stablecoins, and how each type of cryptocurrency fits into your strategy.

Now you know the pros and cons of Bitcoin vs altcoins, how stablecoins bring sanity to a wild market, and why blockchains like Ethereum, BNB Smart Chain (BSC) crypto, Solana cryptocurrency, TRON network, and Polygon blockchain matter.

So what’s next?

Grab the best crypto wallet, Plus Wallet. It helps you organize, swap, and grow your crypto portfolio without breaking a sweat. Because in this space, one thing’s for sure:

More is More.