The Diverse World of Cryptocurrency — Not Just Bitcoin: The Blockchain Revolution Seen Through Thousands of Coins

When hearing the term “cryptocurrency,” many people’s first thought is Bitcoin. However, in reality, there are thousands of cryptocurrencies hidden behind Bitcoin, collectively called “altcoins.”

From major coins like Ethereum and Ripple to unique projects like Solana, Polygon, and Shiba Inu, the variety of cryptocurrencies is astonishingly diverse. This diversity is a key reason why investors ranging from beginners to experts are paying attention to the world of digital assets.

This article provides a clear overview of the entire landscape of cryptocurrencies, starting with the differences between Bitcoin and altcoins, highlighting major noteworthy coins, and discussing the risks to be aware of when investing. If you’re interested in starting with digital assets or want to learn about various coins, please use this as a reference.

Basic Cryptocurrency Concepts — The Fundamental Difference Between Bitcoin and Altcoins

The cryptocurrency market is broadly divided into two layers: Bitcoin and altcoins.

Bitcoin is the pioneer of the cryptocurrency market and has established itself as “digital gold.” Meanwhile, altcoins continue to expand the potential of blockchain technology by being more specialized in functions and use cases.

Major Altcoins Gaining Attention — Cutting-Edge Technology and Use Cases

Ethereum (ETH) — The King of Smart Contracts

Launched in 2015 by Vitalik Buterin and others, Ethereum goes beyond just being a cryptocurrency. It functions as the foundation for innovative services like DeFi (Decentralized Finance), NFTs, and DAOs, playing a central role in the entire blockchain ecosystem.

In 2022, with “The Merge,” Ethereum transitioned from PoW (Proof of Work) to PoS (Proof of Stake). This reduced environmental impact and improved security. In 2024, with the approval of a physical ETF in the US, institutional inflows accelerated. As a highly trusted and practical major coin, its position remains unshaken.

Solana (SOL) — Ethereum Killer with Ultra-Fast Processing

Since emerging in 2020, Solana has achieved transaction speeds of tens of thousands per second thanks to its unique “Proof of History (PoH)” technology. Past network stability issues were addressed through significant upgrades after 2024.

Now, Solana is expanding into areas like Solana Pay and DePIN (Decentralized Physical Infrastructure), with a thriving marketplace for NFTs. Its applications in gaming, music, and creative fields are rapidly growing, earning high praise for both processing performance and developer support.

Ripple (XRP) — Practical Use in Global Remittances

Ripple was developed to dramatically improve the speed and cost of international remittances. After years of legal uncertainty, a 2023 court ruling restored market confidence. RippleNet’s adoption is once again active.

As of 2025, Ripple is focusing on expanding cross-border payment solutions mainly in Asia and the Middle East. It is also working with Central Bank Digital Currencies (CBDCs), maintaining a strong position backed by practical use.

Cardano (ADA) — The Third-Generation Blockchain with an Academic Approach

Founded by Charles Hoskinson, a co-developer of Ethereum, Cardano is known as a “third-generation blockchain” based on academic research and formal methods. Its phased, planned development features gradual functional upgrades.

With smart contract capabilities, development in NFTs and DeFi has expanded. Its real-world applications include supporting education and identity infrastructure in African countries, earning recognition as a “social contribution blockchain.”

Polkadot (DOT) — Enabling Interoperability Between Different Chains

Polkadot emphasizes interoperability, connecting different blockchains to enable data and asset exchanges across networks. Developed by Gavin Wood, co-founder of Ethereum, it is highly regarded for its innovative approach and deep technical foundation.

Through a structure of a central “relay chain” and independent “parachains” that can be built for each project, it offers both flexibility and connectivity. In 2025, parachain auctions continue, and its presence as Web3 infrastructure expands.

Polygon (MATIC) — The Scalability Revolution for Ethereum

Polygon emerged as a Layer 2 solution to solve Ethereum’s scalability issues. Originally known as Matic Network, it rebranded in 2021 and has rapidly gained support from developers and major companies.

Its main advantage is full compatibility with Ethereum, combined with faster transaction speeds and significantly lower fees. The “Polygon 2.0” plan, integrating ZK-rollups and aggregators, is underway. In 2024, large tech firms adopted Polygon for NFT projects, accelerating its use in entertainment. By 2025, it has established a solid position as a foundation for gaming, NFTs, and DeFi.

Avalanche (AVAX) — High Performance and Customization

Avalanche is a blockchain characterized by transaction finality within one second. Its compatibility with Ethereum Virtual Machine (EVM) and customizable “subnets” attract developers and enterprises.

Particularly, subnets enable building dedicated blockchains tailored to corporate or national needs. In 2024, South Korea’s SK Group reportedly developed a proprietary chain based on Avalanche. Its comprehensive capabilities support institutional finance infrastructure and regulatory-compliant chains.

Dogecoin (DOGE) — From Meme to Reality

Created in 2013, Dogecoin is a pioneering meme coin inspired by the Shiba Inu meme. Originally a joke coin, it gained global popularity through community support and catchy branding.

Supported by notable figures, its price has been repeatedly driven upward. As of 2025, it remains a symbol of meme culture and grassroots economic activity. While its practical use as currency is limited, it boasts a unique brand power.

Shiba Inu (SHIB) — From Dogecoin Killer to Ecosystem

Launched in 2020, Shiba Inu started as a community-led project dubbed “Dogecoin Killer” by anonymous developers. Its features of large issuance and low price led to explosive popularity.

Today, it has gone beyond just a meme coin, expanding into DeFi, NFTs, and metaverse sectors. Practical services like its own DEX “ShibaSwap” and Layer2 solution “Shibarium” are active. Token burns and dApp development continue to expand its ecosystem, driven by a passionate community.

Chainlink (LINK) — Infrastructure Connecting Blockchain and Reality

Chainlink provides oracle technology that connects blockchains with external data sources. By accurately importing real-world data such as weather, stock prices, and exchange rates into smart contracts, it greatly expands blockchain applications.

In 2024, the cross-chain protocol “CCIP (Cross-Chain Interoperability Protocol)” becomes operational, enabling asset and information transfer between different blockchains. It is an essential component in DeFi, insurance, gaming, and AI integrations, functioning as a reliable behind-the-scenes infrastructure.

Classification by Use Case — Find Your Investment Purpose

Cryptocurrencies can be categorized based on their primary use:

• Platform-based: Ethereum, Solana, etc. Foundations for decentralized applications (DApps)
• Payment and remittance: Ripple, Litecoin, etc. Ideal for international transfers and microtransactions
• Stablecoins: USDT, USDC, etc. Designed for price stability
• Meme coins: Dogecoin, Shiba Inu, etc. Community-driven popularity

Additionally, new projects are emerging with features like AI integration, environmental focus, and DAO (Decentralized Autonomous Organization) frameworks.

The Reality of Cryptocurrency Investment — Facing Inevitable Risks

While cryptocurrencies offer significant potential, they also come with proportional risks. Some coins surge rapidly, while others lose value in a short period.

Price Volatility

Cryptocurrencies are characterized by extremely high price volatility compared to traditional stocks and bonds. Prices can multiply or even tens of times, but also crash sharply. Even Bitcoin experiences short-term fluctuations of dozens of percent, and altcoins tend to be even more volatile. During market downturns like in 2022, many projects saw declines of over 90%.

Understanding Security Risks

Since cryptocurrencies are assets managed by individuals, security risks must be carefully considered.

Exchange Risks: Past incidents include hacks and insolvencies of major exchanges, leading to assets becoming inaccessible.

Wallet Management: When self-managing via hardware or software wallets, safeguarding private keys and recovery phrases is critical. Loss or leakage results in asset loss.

Smart Contract Vulnerabilities: Hacks exploiting bugs in DeFi and NFT platforms have been reported. Be cautious with high-yield services.

Impact of Regulatory Changes

Cryptocurrencies are subject to different legal frameworks in each country, and future regulatory changes can affect prices and circulation. Taxation is also a concern: profits from sales, swaps, and staking rewards are taxable, and high gains can lead to substantial tax burdens.

Liquidity Risks

For low-volume coins, large sell-offs may not be executed at fair prices. Limited buyers and narrow selling windows can cause slippage or absence of buyers. During sharp declines, attempting to sell all at once may result in significant slippage or no buyers at all. Investing in low-liquidity tokens should be done with full awareness of the risks and with surplus funds.

Summary — Knowing a Wide Range of Coins Is the First Step in Investing

There are thousands of cryptocurrencies, broadly divided into Bitcoin and altcoins. Bitcoin remains a stable core currency in the market, while altcoins each have their own features and use cases, holding diverse possibilities.

Blockchain technology is constantly evolving, with trends changing rapidly. New projects appear one after another, some succeed, others fade away. Therefore, rather than aiming to “make big money immediately,” a long-term perspective on “which projects will survive” and “which align with your values” is key to success.

Understanding the technology and mechanisms, and building your own investment style, are essential literacy for the future. Keep learning, take small steps forward, and experience the future of cryptocurrencies firsthand.