1. Payment Cryptocurrencies Designed to function as digital money or a store of value, aiming to replace traditional fiat currencies like the dollar or euro. Examples: Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH). 2. Smart Contract Platforms Part of blockchains that allow the execution of smart contracts—self-executing contracts with terms written into code, enabling decentralized applications (dApps). Examples: Ethereum (ETH), Cardano (ADA), Solana (SOL), Avalanche (AVAX). 3. Stablecoins Cryptocurrencies designed to minimize price volatility by being pegged to a stable asset, such as the US dollar or a basket of goods. Often used for trading or as a safe store of value in volatile markets. Examples: Tether (USDT), USD Coin (USDC), Binance USD (BUSD). 4. Governance Tokens Tokens that give holders voting power within decentralized protocols, often part of Decentralized Finance (DeFi) platforms, allowing participation in decisions on upgrades and policy changes. Examples: Uniswap (UNI), Maker (MKR), Aave (AAVE). 5. Utility Tokens Designed to be used within a specific platform or ecosystem, providing access to services, products, or features of that platform. Examples: Binance Coin (BNB), Chainlink (LINK), Filecoin (FIL). 6. Privacy Coins Focus on providing private and anonymous transactions by obscuring the details of the sender, receiver, and transaction amount. Examples: Monero (XMR), Zcash (ZEC), Dash (DASH). 7. Meme Coins Often created as jokes or based on internet memes, but can gain value and popularity through community support and social media. Examples: Dogecoin (DOGE), Shiba Inu (SHIB). Each type of cryptocurrency serves a different purpose, from acting as digital cash to powering decentralized applications or maintaining privacy. Understanding the types helps investors choose the right cryptocurrency for their goals.