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Categories: How Crypto Coins Are Grouped – A Complete 2025 Guide

Crypto Categories: Understanding How Coins Are Grouped
If you’ve ever browsed a crypto price tracker like CoinMarketCap or watched a deep dive on CNBC Crypto World, you’ve probably seen coins grouped under different categories. But what do these categories mean? Why do they matter? And how can they help you pick better investments?
In the world of thousands of tokens, categories help investors, traders, and even beginners make sense of this fast-changing space.
In this detailed guide, you’ll learn what crypto categories are, the most popular ones in 2025, how they work, and how you can use them to diversify your portfolio wisely.

What Are Crypto Categories?

A crypto category is simply a group of coins or tokens that share a similar use case, technology, or theme. It’s like how stocks get grouped into sectors — tech, healthcare, finance — so investors can track trends across the bigger picture.

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Why Crypto Categories Matter

Simplify Research:
Instead of tracking each coin individually, you can study whole trends — like the rise of DeFi or NFT coins.
Spot New Opportunities:
Some categories take off when news hits — for example, a new AI trend can push AI-related coins up.
Better Diversification:
By spreading investments across categories (DeFi, Layer 1s, gaming), you reduce the risk tied to any single theme.
Track Market Sentiment:
When a category starts trending on news sites like CNBC Crypto World, it’s often a sign of market momentum.

Popular Crypto Categories in 2025

Category	What It Means	Examples
Layer 1 Protocols	Main blockchains that run smart contracts	Bitcoin, Ethereum, Solana, Cardano
DeFi	Decentralized finance apps, lending, staking	Aave, Uniswap, Compound
Stablecoins	Coins pegged to fiat currencies for stability	USDT, USDC, DAI
USDT, USDC, DAI	Coins powering NFT markets and play-to-earn games	ApeCoin, Axie Infinity, Sandbox
Meme Coins	Community-driven coins often based on internet culture	Dogecoin, Shiba Inu
Dogecoin, Shiba Inu	Scaling solutions built on top of Layer 1s	Polygon, Arbitrum
Privacy Coins	Coins focused on anonymous transactions	Monero, ZCash
Oracle Networks	Coins connecting blockchains with real-world data	Chainlink, Band Protocol
AI & Big Data	New niche for AI-powered crypto apps	Fetch.ai, SingularityNET

How Categories Drive the Market

Let’s see how categories impact price action.

When DeFi first boomed in 2020, DeFi tokens like UNI and AAVE surged as billions poured into decentralized lending.
In 2021, NFT & Metaverse coins exploded thanks to gaming hype.
In 2022-2023, Layer 2 solutions gained momentum as Ethereum gas fees spiked.
In 2025, AI crypto and green blockchain coins are trending as the world focuses on AI and sustainability.

How to Use Categories as an Investor

Pick Themes You Believe In:
If you think DeFi will keep growing, look at the strongest DeFi coins — not just Bitcoin.
Watch for Rotation:
Money often moves from one hot category to another. Tracking this helps you enter early.
Avoid Overexposure:
Don’t put all your funds in one category — spread across Layer 1s, Layer 2s, NFTs, and stablecoins.
Follow the News:
Platforms like CNBC Crypto World often cover when a category heats up due to new partnerships, updates, or regulations.

Business News

IPO Raised ₹599 Crore Even Before Opening, Investors Rush In; GMP Will Blow Your Mind Copy

Tempor Nec Feugiat Nislpretium Fusce Platea Dictumst

NSE’s Diwali IPO in Sight: Awaits SEBI’s NoC After ₹1,600 Cr Record Settlement Proposal

Tempor Nec Feugiat Nislpretium Fusce Platea Dictumst

Example – DeFi Category Breakdown

Let’s look closer at a real-world category: DeFi (Decentralized Finance)

Key Players:

Uniswap (UNI): Largest decentralized exchange (DEX).
Aave (AAVE): Leading lending protocol.
MakerDAO (MKR): Creator of DAI stablecoin.

Why It Matters:
DeFi lets people borrow, lend, and earn yield without banks — a revolution in finance.

Risks:
Smart contract bugs, hacks, and regulatory scrutiny.

How to Invest:
Start small. Use reputable wallets. Understand impermanent loss if you’re providing liquidity.

Where to Track Categories

CoinMarketCap & CoinGecko:
Both have category filters — super helpful.
Crypto News Sites:
Sites like CNBC Crypto World often analyze how entire sectors are performing.
On-Chain Data Platforms:
Dune Analytics, Glassnode, and others break down category flows.

Watch Out – Not All Categories Are Equal

Some categories are highly speculative:
- Meme coins can pump and dump overnight.
- NFT coins may lose hype as trends change.
- Privacy coins sometimes face regulatory restrictions.
Always combine category trends with solid fundamentals and community strength.

Future Categories to Watch

Crypto is always evolving. Experts say new categories might emerge in 2025:
CBDCs: Government-backed digital currencies.
AI Chains: Blockchains built for AI training data and computing.
Green Crypto: Coins focusing on carbon neutrality.
Cross-Chain Bridges: Tokens that link different blockchains together.

Final Thoughts

Categories are your best friend in making sense of a chaotic crypto market.
They help you think like a professional investor — tracking trends, diversifying smartly, and avoiding blind spots.
Keep learning, follow reputable sites like CNBC Crypto World for news, and always do your own research before buying any coin — no matter what category it belongs to.

Conclusion

Grouping crypto into categories makes crypto investing clearer, simpler, and smarter.
Use categories as a lens — but remember, a hot category today can cool off tomorrow. Balance your enthusiasm with careful research and a solid long-term plan.