Crypto 101 with Jonathan · Lesson 6 of 8
Is all crypto the same?
No. A short way to sort the thousands of cryptocurrencies into a few groups.
In this lesson
- There are thousands of cryptocurrencies, and they do different jobs.
- A simple sort: digital money like Bitcoin, platforms that run programs like Ethereum, stablecoins pegged to a currency, and everything else.
- The category tells you what questions to ask. It does not tell you whether something is a good idea.
Lesson notes
People say “crypto” the way they say “vehicles.” A bicycle, a pickup truck and a freight train are all vehicles, but you would not use them for the same trip. Crypto is like that.
Here is a simple sort. First, digital money: Bitcoin is the main example, designed to be scarce and to move value without a middleman. Second, platforms: networks like Ethereum that run programs and applications, with a coin that pays for using them. Third, stablecoins: tokens designed to hold a steady value by being pegged to a currency such as the dollar. Fourth, everything else: thousands of smaller projects with every purpose you can imagine, and some with none.
In the video I take one example from outside the Bitcoin box: XRP, a network built for moving money between institutions in seconds rather than days. It exists for a different job than Bitcoin, which is the whole point of this lesson.
Knowing the category does not tell you whether something is a good idea. It tells you which questions to ask. What is this for? Who runs it? What happens if the people behind it walk away?
That finishes the six short lessons. If you want a longer, calmer walk through how all of this fits inside a retirement account, the free guide is the next step.