Cryptocurrencies can be divided into 6 categories as follows:

1. Store of Value

Store of Value is a limited-edition group of cryptocurrencies, including Bitcoin, the world's first cryptocurrency and the one with the largest market capitalization today. There are only 21 million coins available and as a result, just like the digital form of gold, when investors seek to possess Bitcoin, the coin's value rises. Litecoin (LTC), another digital currency, is also categorized in this group.

2. Smart Contract

A collection of coins that function on smart contract blockchain networks, allowing developers to create and develop applications on the blockchain. This type of coin includes Ethereum (ETH), Cardano (ADA), Polkadot (DOT) and etc.

3. Value Transfer

These coins, such as XLM or Stellar, which are the underlying payment networks that come under RippleNet, carry value via the Internet. It's an open-source payment platform that aims to offer everyone speedy and equal access to financial transactions.

4. Oraclecoin

Oracle is a service that connects blockchain data to external data, allowing DeFi to bring in and continue to use data like coin prices, asset prices, and other information. Chainlink (LINK), for example, is an Oraclecoin that acts as a data center for coin transfers, allowing the LINK token to be used to execute token receipts and contracts.

5. Base Coins (Stablecoin)

Base Coins, such as USDT and DAI, are cryptocurrencies that are based on the value of government-issued money or assets of similar value in a 1:1 ratio.

6. Memecoin

These coins are usually highly volatile and are produced for fun or to tease major coins. Dogecoin (DOGE), for example, fluctuates in value based on the trend or Elon Musk's tweets, among other factors.