

5 major classification standards for virtual currency. Exchanges will not tell you coin selection skills 80% of retail investors bought the wrong ones
Jul 08, 2025 pm 06:27 PMMany retail investors are confused when choosing virtual currencies, resulting in undesirable decisions. This article aims to solve this problem and helps you understand the currency selection logic that exchanges usually do not actively emphasize by systematically introducing the five core classification standards of virtual currencies. Mastering these classification methods will help you establish an independent analytical framework to assess the value of the project more accurately and avoid blind investment.
Recommended official website registration address of mainstream cryptocurrency exchange in 2025:
Ouyi OKX:
Binance Binance :
Gateio Sesame Opening :
Huobi htx: [
Store of value and payment
The core function of this type of currency is similar to the "gold" or universal currency in the digital world. They are often characterized by decentralization and scarcity, and are designed to be a reliable storage of value or an efficient peer-to-peer payment tool. Bitcoin is the most representative example of this category, designed to achieve an electronic cash system that is not controlled by a single agency.
Smart contract platform category
This type of project provides a basic platform on which developers can build and run decentralized applications (DApps), which are like the "operating systems" of the blockchain world. Ethereum is the pioneer in this field. When evaluating such projects, it is crucial to examine the activity of their ecosystem, technological innovation capabilities, and the size of the developer community. A prosperous ecosystem is the core driving force for its value growth.
Decentralized applications and protocol classes
These are specific applications built on smart contract platforms, focusing on solving specific areas of problems such as decentralized finance (DeFi), gaming (GameFi), or social networking, etc. Its value is directly linked to its application scenarios, user base and protocol revenue. Investors are advised to understand in-depth what pain points they have solved when analyzing, and pay attention to their user growth and on-chain data.
Privacy and Anonymity
This type of currency focuses on protecting users' transaction privacy and hides information such as sender, receiver and amount of transactions through various encryption technologies. They meet the specific market demand for anonymity and provide users with higher confidentiality. However, investors also need to recognize that such projects often face the risks of stricter regulatory scrutiny and need to find a balance between privacy protection and compliance.
Stable Coin
The value of a stablecoin is often pegged to some stable real-world asset (such as the US dollar) and is designed to provide price stability. They play the role of trading media and short-term hedging tools in the virtual currency market, and are an important bridge connecting the traditional finance and the crypto world. When choosing a stablecoin, the transparency of its issuer and the audit of reserves are key considerations.
The above is the detailed content of 5 major classification standards for virtual currency. Exchanges will not tell you coin selection skills 80% of retail investors bought the wrong ones. For more information, please follow other related articles on the PHP Chinese website!

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