The crypto market consists of thousands of different projects, each with their own goals, technologies, and applications. To maintain an overview, these projects can be divided into various categories. We have listed 10 of the largest categories on our platform for you.

1. Utility Tokens

These tokens are designed to be used within specific platforms and provide access to certain services or products. They are not intended as investment instruments in themselves, but as 'fuel' within a network. Well-known examples include Binance Coin (BNB), which offers benefits within the Binance ecosystem, and Chainlink (LINK), which acts as a bridge between blockchains and external data.

2. Memecoins

Memecoins originate from internet memes and are often characterised by a strong online community. However, their popularity is often based on hype, which can lead to significant volatility. Nevertheless, they can also be surprisingly influential. Dogecoin (DOGE) and Shiba Inu (SHIB) are well-known examples that started as memes and now have large ecosystems and a huge following.

3. Governance Tokens

Governance tokens give their holders the right to participate in decision-making processes within decentralised networks. This allows users to influence the development of the project, such as protocol changes, allocation of funds, or reward structures. Examples include Uniswap (UNI) and Maker (MKR), where token holders can vote on important proposals.

4. RWA Coins

RWA (Real-World Asset) coins represent physical or traditional financial assets on the blockchain, such as real estate, commodities, or bonds. They form a bridge between traditional financial instruments and the world of cryptocurrency, thus bringing real economic value to the digital world. Projects such as Chromia (CHR) and Venus (XVS) fall under this category, tokenising assets or offering loans with real-world asset collateral, respectively.

5. Oracle Coins

Oracle coins are the native cryptocurrencies of oracle networks. Smart contracts do not have access to external data, so oracles provide smart contracts on blockchains with external, real-world data, enabling more complex applications. This is ideal for complex applications such as DeFi, insurance, and supply chains. Chainlink (LINK) and Band Protocol (BAND) are leading examples in this sector.

6. DeFi Coins

DeFi (Decentralised Finance) encompasses projects that offer traditional financial services in a transparent and decentralised manner, often without traditional intermediaries. This includes lending, borrowing, saving, trading, and insurance, all via smart contracts. For example, you can also earn interest by lending out your crypto. Examples of such projects include Aave (AAVE) and Compound (COMP).

7. Layer 1 Coins

Layer 1 blockchains form the fundamental infrastructure on which other decentralised applications (dApps) can be built. Other applications (such as DeFi and NFTs) run on top of these. These coins are often used to pay for transactions and reward validators. Without Layer 1s, no other categories could exist. Important examples include Ethereum (ETH), Solana (SOL), and Cardano (ADA).

8. AI Coins

AI tokens combine artificial intelligence with blockchain technology. They are used for data processing, network optimisation, or decentralised AI marketplaces. These projects integrate artificial intelligence (AI) within their blockchain technology or use AI tools for analysis and optimisation within the crypto market. AI in combination with blockchain opens up new possibilities in the field of automation, prediction, and decentralisation of knowledge. Consider Fetch.ai (FET) and SingularityNET (AGI).

9. DEX Coins

DEX (Decentralised Exchange) coins are the tokens associated with decentralised trading platforms, where users can trade directly with each other without a central authority. Crypto is traded on these types of platforms via smart contracts. DEXs make it possible for anyone to trade crypto freely and directly, without a central party being able to intervene. Uniswap (UNI) and SushiSwap (SUSHI) are well-known DEX projects.

10. NFT Coins

Non-Fungible Tokens (NFTs) represent unique digital assets, ranging from art to collectibles. This can be an asset within the network or a real-world asset that has been tokenised and converted into a digital asset. You can buy these within the network, making you the proud owner of, for example, in-game assets or a piece of a painting. The associated coins support trading and creation within NFT ecosystems, such as Flow (FLOW) and Tezos (XTZ).

Conclusion

There are many more crypto categories to mention, of which these are just ten. For example, there are also metaverse tokens, stablecoins, DAOs, gaming coins, and more. Each category has unique characteristics, and various projects that utilise all the possibilities within that category in their own way. Always research a project thoroughly before investing.