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Understand what cryptocurrency is and why it matters today.
Explore types, benefits, risks, and real-world use cases.
Get the latest snapshot of top cryptocurrencies in 2025.
The year 2025 marks a significant shift from an operational position to the actualization of a recognized financial asset, attracting the attention of retail and institutional investors, as well as governments.
As of September 8, Bitcoin trades higher than $110,000, Ethereum is above $4,300, and the total market capitalization of the crypto stands at around $3.84 trillion.
This illustrates the waxing acceptance of digital assets in the seesaw-like market, making it crucial for novice investors to understand the workings of cryptocurrencies, their advantages, and the risks involved.
Cryptocurrency is a virtual or electronic form of money used to secure transactions through cryptography and transmitted across decentralized networks, typically based on blockchain technology that offers a tamper-proof environment.
Unlike any other traditional currency that is printed and issued by a central bank, a cryptocurrency is under no authority; hence, restricting cryptocurrencies is impossible.
Key Features:
Decentralization: It is a peer-to-peer network without any central authority governing it.
Security: Regardless of the cryptography used, unwavering security is guaranteed in carrying out transactions.
Transparency: It is similar to a publicly accessible ledger.
Immutability: Any transaction, once confided to the chain, can never be tampered with.
Global Reach: Anyone with internet access can join.
These are some reasons why crypto trading is becoming more popular when it comes to cross-border payments and financial inclusion.
Also Read: Bitcoin Price Holds $111,000 Support as Analysts Eye $120,000 Target
Crypto is not bound to a single use case and serves different purposes and workflows on different blockchain systems. Knowing them may help investors, developers, and users get along effectively in the market.
Functioning: Created for the exchange of value and payments with the ultimate intent of replacing or complementing traditional money.
Technology: They can work without intermediaries for verification and validation purposes if done over a decentralized network (blockchains).
Examples and Use Cases:
Bitcoin (BTC): Often dubbed ‘digital gold,’ cryptocurrency has carved out a unique role in finance. Beyond enabling seamless peer-to-peer transactions, it is increasingly viewed as a hedge against inflation, offering a new value in the digital age.
Litecoin (LTC): Known for its fast transactions, used primarily in daily purchases.
Dogecoin (DOGE): This currency, which originated as a mere joke, is now used to tip, make micro-payments, and donate.
Actual Use Cases: Sending money, buying goods and services online, cross-border transactions, and payments.
Function: Maintain their value nearly stable by pegging themselves to fiat currencies (e.g., USD) or other assets.
Technology: Usually backed 1:1 by fiat currency reserves or algorithmically controlled to ensure stability.
Examples and Usage:
Tether (USDT): Mostly used for trading, when one wants to have superquick movement of value without filling the whole conversion process into fiat.
USD Coin (USDC): Fully regulated, this coin is mostly used in DeFi applications.
Binance USD (BUSD): Transacted and traded on Binance.
Real-World Uses: Safe storage of funds, hedging against price volatility, cross-border transactions, lending, and borrowing for DeFi.
Function: Grant access to a service, application, or platform in a blockchain environment.
Technology: Developed on smart contract platforms, commonly on Ethereum or comparable networks.
Examples and Usage Cases:
Ethereum (ETH): Utilized to settle transaction fees (gas) and trigger smart contracts.
Binance Coin (BNB): Enabling actions on the Binance exchange, such as discounting trading fees and selling tokens.
Chainlink (LINK): Provides data feeds to smart contracts operating dApps.
Real-World Use Cases: Payment of fees on blockchain platforms, engagement with tokenized ecosystems, facilitation of dApps.
Existence: Take ownership of real-world assets such as equity, bonds, or real estate, and the securities law will apply to restrictions on such securities.
Technology: Tokenization implies transforming existing traditional financial instruments into blockchain-based digital tokens.
Examples & Use Cases:
Polymath (POLY): Security tokens are issued in compliance with the law.
tZERO (TZROP): Platform for trading tokenized securities.
Securitize (DS): Platform for creating digital securities for private equity and real estate.
Real-world plans: Asset trading with tokenization, raising capital efficiently, fractional ownership of real estate or stocks, and transparency enhancements.
Purpose: Originally launched as a joke or internet meme, social media hype somehow built a strong market momentum for it.
Technology: Developed mostly on top of common blockchain protocols but far more dependent on community acceptance than technical innovation.
Examples and Use Cases:
Shiba Inu (SHIB): Almost a replica of Dogecoin, with token burning mechanisms and an online community.
Floki Inu (FLOKI): It got its fame through social media, fostering hype, sometimes for payments or an NFT project.
Pepe Coin (PEPE): Meme, speculative investment with extreme volatility.
Real-World Applications: Community activities, speculative trading, online tips, and NFT communities.
Purpose: Allowing holders of the governance token to vote on any matters affecting the blockchain project or protocol.
Technology: Governance tokens are basically built on smart-contract platforms and confer voting rights to holders; the right to vote is proportionate to the number of tokens that are held by any specific token holder.
Examples & Use Cases:
Maker (MKR): Governance mechanisms that allow holders to vote on proposals, hand-picking a DAI stablecoin system.
Uniswap (UNI): Token holders vote on proposals regarding the Uniswap protocol and fee structure.
Real-World Applications: Decentralized governance, community decision-making, project upgrades, and ecosystem management.
Cryptocurrencies are multi-purpose, each variety having a different use case. It is necessary to understand these categories for anyone who is entering the cryptocurrency space, for investment, technology development, or daily use.
Crypto trading has several advantages and disadvantages. Some of them are discussed below:
Lower costs than banks
Faster international transfers
Financial inclusion for the unbanked
Transparency and security
Potential for high returns
Price volatility
Regulatory uncertainty
Cybersecurity risks
Limited acceptance as legal tender
Below is a quick rundown of the steps that can be taken to start trading on crypto platforms:
Choose a Wallet: Software or hardware wallets to secure assets.
Open an Account on Crypto Exchange: Sites such as Binance, Coinbase, or Kraken.
Verify Identity: KYC procedures are required.
Deposit Funds: Fiat or other cryptocurrencies.
Make Transactions: Buy, sell, or transfer accordingly.
Source: coinmarketcap.com
Market Insights:
Bitcoin is still in the lead with a market cap of ~$2.2 trillion.
Ethereum sits at just under $4,300; Layer 2 solutions improve scalability.
Altcoins such as Dogecoin (+7.2%) and XRP (+2.83%) are being drawn to once more.
Trends to Watch
Institutional Adoption: BlackRock and others ramp up crypto exposure (The Australian)
Regulation: The US Strategic Bitcoin Reserve marks government acceptance of digital currency
Also Read: 7 Top Cryptos To Buy This Week: Which Meme Coin Could Explode First
As of September 8, 2025, the cryptocurrency market reflects a mix of stability, expansion, and innovation. Bitcoin dominates altcoins and is followed by Ethereum, which is a new cryptocurrency.
For one to try hands-on experience in trading cryptocurrencies, one needs to have an understanding of what cryptocurrencies are, the different types, their advantages, disadvantages, and market tendencies. In the present-day day ever-changing digital world, purchasing and selling should be done carefully.
You May Also Like
1. What is cryptocurrency?
Cryptocurrency is a digital currency using cryptography, operating on decentralized networks, enabling secure, transparent, peer-to-peer transactions.
2. Is cryptocurrency legal in India?
Cryptocurrency trading is legal, but it’s unregulated; the Indian government imposes taxes and monitors transactions strictly.
3. Why is Bitcoin so valuable?
Bitcoin’s scarcity, decentralization, institutional adoption, and status as ‘digital gold’ contribute to its high market value.
4. How do I store cryptocurrency safely?
Use hardware wallets, strong passwords, and two-factor authentication to protect funds from hacks, phishing, or exchange breaches.
5. Can cryptocurrencies replace traditional money?
Cryptocurrencies may supplement traditional money, but widespread replacement depends on regulation, scalability, and universal merchant acceptance globally.
