Before you HODL a cryptocurrency, it's important to understand the different types of coins available in the market:
1. Bitcoin (BTC):
The first and most well-known cryptocurrency, created in 2009 by an anonymous entity known as Satoshi Nakamoto. Bitcoin is a decentralized digital currency designed as a store of value and a medium of exchange, often referred to as "digital gold."
2. Altcoins:
Any cryptocurrency other than Bitcoin, with "altcoin" meaning "alternative coin." These coins aim to address Bitcoin's limitations or offer unique features such as faster transactions, smart contracts, privacy, or interoperability. Examples include Ethereum (ETH), Cardano (ADA), Polkadot (DOT), and Litecoin (LTC).
3. MemeCoins:
Cryptocurrencies were initially created as jokes or based on internet memes, often gaining popularity through community-driven hype. While some start as fun projects, others evolve into platforms with utility, such as NFTs or staking features. Examples include Dogecoin (DOGE) and Shiba Inu (SHIB).
4. Shitcoins:
Cryptocurrencies that lack clear use cases, utility, or long-term potential. These are often pump-and-dump schemes created to generate quick profits for developers without any substance behind the project. They’re typically launched during hype cycles with little to no real value.
Invest wisely by focusing on projects with clear roadmaps, strong teams, and tangible goals.