Types of cryptocurrency

Different crypto-assets, different jobs

Bitcoin can be transferred on its own network. Ether pays for work on Ethereum, including when an app moves another asset. A stablecoin such as USDC aims to follow the US dollar, while LINK is used in Chainlink's data services. All may be called “cryptocurrencies”, but that single word hides different uses and sources of risk.

Here crypto-asset is the broad term. What cryptocurrency means covers the basic definition and how a transfer is recorded. This guide compares what familiar assets do and what holding them can mean to an investor.

Four useful ways to compare them

Examples of crypto-assets by practical use

Use	What happens	Example
Transfer value	The asset moves between addresses on its own network	BTC on Bitcoin; LTC on Litecoin
Pay for network work	The asset pays a fee when the network processes activity	ETH on Ethereum; SOL on Solana
Follow another value	An issuer aims to keep the asset linked to a reference currency	USDC and the US dollar
Pay for a service	The asset is used within a particular network service	LINK in Chainlink's data services

Litecoin is another transfer-focused example with its own network. How Litecoin differs from Bitcoin takes that comparison further.

Bitcoin records BTC transfers on its own blockchain¹. On Ethereum, users pay network fees with ETH² even when they transfer a token. On Solana, SOL pays transaction fees³. Chainlink has a different role: LINK can pay for its oracle services⁴ that bring outside data to blockchain applications.

A stablecoin is a different kind of comparison

USDC is designed for dollar redemption⁵. BTC, ETH and SOL are not designed to follow the dollar. A stablecoin can still depart from its target, and a dollar-linked price can move in euro or krona terms. The stablecoin guide explains backing and redemption.

How many cryptocurrencies are there?

There is no count that stays accurate without a date and a definition. New assets appear, others disappear, and lists differ on whether they include small tokens and stablecoins. Understanding an asset’s function and issuance matters more than memorising a changing count.

What an investor actually holds

Direct ownership generally lets a holder use an asset on its network, while making the holder responsible for a wallet or custodian. A crypto ETP is a listed security linked to an asset's price; the security cannot be sent to a crypto address. The ETP explainer sets out that ownership difference.

Virtune Coinbase 50 Index ETP offers exposure to several crypto-assets through one security. Its index chooses and weights the constituents⁶; the investor owns the ETP rather than those assets in personal wallets. Virtune Crypto Altcoin Index ETP and Virtune Crypto Top 10 Index ETP EUR follow different selection rules. Names and examples on this page do not tell you which assets are currently in any index; the product pages provide current holdings and costs.