There are numerous distinctions between cryptocurrencies. Some have been around for years, while others have only been around for a few days (or hours). Some can be used to buy coffee in the morning, while others are almost entirely speculative investments.
Another significant difference is how coins are created and transactions are verified. For example, Bitcoin is "mined," which entails a series of powerful computers solving cryptographic puzzles to add new coins to the blockchain. Some cryptos, such as Ripple, are created through a consensus mechanism, which is a network of bank-owned servers that vouch for the validity of transactions.

Cryptocurrencies differ in purpose, technology, and features. Bitcoin, the first cryptocurrency, serves primarily as digital money and a store of value. Others, like Ethereum, offer smart contract functionality, enabling decentralized applications (dApps) and services beyond simple transactions.

Some cryptocurrencies focus on privacy (e.g., Monero), while others emphasize speed or scalability (e.g., Solana). Stablecoins, like USDT, are pegged to fiat currencies to minimize volatility, unlike highly speculative coins.

Differences also arise in consensus mechanisms Bitcoin uses proof of work, while others, like Cardano, use proof of stake. These variations cater to specific use cases, innovation goals, or user needs, making each cryptocurrency unique in the market.