Virtual currencies have become an increasingly popular topic among investors, due to their potential to provide significant gains. If you are new in this area or you want to understand better what are the types of virtual currencies and how you can use them, you have come to the right place.
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Virtual coins: what are and how they work
Cryptocurrencies, cryptoactives or virtual currencies (en. Cryptocurrencies , Cyptoassets, ) are a digital representation of value or rights that can be transferred and stored electronically, using the technology of distributed registers or a similar technology, in accordance with the provisions of art. 3 point 1. SBPCT. (2) of the proposal of regulation of the European Parliament and the Council on Cryptoactive Markets .
Simply said, virtual currencies are a form of digital assets, used mainly as a means of exchange or storage in the online environment. Unlike traditional money, they are completely decentralized, which means they are not controlled by governments or central banks.
The key features of a virtual currency:
- Decentralization: without government or bank control.
- Anonymity: Users can trade without disclosing personal information within certain requirements.
- High security: I use advanced cryptography to protect their networks and users.
- Quick transactions: International transfers can be done in just a few minutes.
The main categories of virtual currencies
On the virtual currency market, the various types of currencies are classified according to technology and uses as follows:
1. Cryptocurrencies consecrated - virtual currencies with a solid history and wide support among investors.
2. memecoins -virtual currencies based on the popularity generated by communities or memes.
3. Other types of virtual currencies, such as Stablecoins, utility Tokens or Security Tokens.
- Consecrated cryptocurrencies - guide for investors
The cryptocurrencies have gained their popularity over the last decade, becoming a central element in the strategies of many modern investors. Among the thousands of virtual currencies available on the market, there are some "consecrated" cryptoons, which have resisted the test of time and have proved to be viable alternatives to traditional investments.
What are the consecrated cryptocurrencies?
The consecrated cryptocurrencies are those virtual currencies that have a solid history, a large market capitalization and a massive use. The best known examples include Bitcoin (BTC) and Ethereum (ETH) , but also other coins such as Litecoin (LTC), Sola (Sol) or Ripple (XRP) are considered reliable.
These virtual currencies have shown over time that they are more stable compared to newer and more speculative ones. They are often the first choice for investors because of their reputation. Examples:
Bitcoin (BTC)
Bitcoin, launched in 2009 by a person known under the pseudonym Satoshi Nakamoto, inaugurated the era of virtual currencies, proposing a decentralized financial alternative, independent of any central authority.
Over the years, Bitcoin has become a "digital gold," and today it is a consecrated cryptocurrency, having the largest market capitalization. From an initial value almost zero, Bitcoin is currently trading at prices of tens of thousands of dollars per unit.
Ether (ETH)
Launched in 2015, Ethereum introduced a revolutionary concept - smart contracts. Thus, blockchain technology has begun to be used not only for performing decentralized transactions, but also for automating processes based on predefined conditions.
The Ethereum network has become the main platform for many decentralized applications (DAPPS), thus contributing to the development of innovative solutions in sectors such as finance, insurance, supply chains and more.
Why should you choose devoted virtual coins for investments?
Increased security
The consecrated cryptocurrencies benefit from advanced security technologies and extremely robust decentralized networks. Compared to newer projects, they have been constantly tested and improved over the years.
Potentially increased yield
The consecrated cryptocurrencies are known for their high potential to provide significant long -term profits. Bitcoin , for example, increased from a few cents in 2010 to tens of thousands of dollars.
Global adoption and increased liquidity
The main advantage of the consecrated cryptocurrencies is their large -scale adoption.
This translates to:
- High liquidity, which means you can buy or sell these assets quickly and easily.
- Acceptance in more and more sectors, from e-commerce to daily payments.
Moreover, the support that large financial institutions, such as Paypal or Mastercard, grant these consecrated virtual currencies, strengthen their position in the market.
Strong communities
Each consecrated cryptocurrency is supported by a passionate community that actively participates in its development. This level of involvement brings:
- Constant technological improvements.
- Support for investors through forums, events and educational resources.
One of the strongest communities is the one around Bitcoin, known for its constant activity in the direction of developing and promoting blockchain technology.
The consecrated cryptocurrencies are the ideal choice for investors who want stability, transparency and high growth potential, representing long -term investments with promising prospects.
What are memecoins and why are they popular?
Memecoins are virtual currencies inspired by memes or jokes and viral phenomena in the online environment. These differ from traditional cryptocurrencies in that they do not usually have solid functionality or obvious utility. Instead, they gain popularity through viral promotions, cultural events and support of public personalities.
Dogecoin
The first memecoin, Dogecoin, was launched in 2013 by software engineers Billy Markus and Jackson Palmer, as a joke. This cryptocurrency was inspired by the popular "Doge" meme, which presents a shiba inu dog with funny expressions and comic texts. But what was initially thought of as a fun project for the crypto community, turned into a global phenomenon.
Today, Dogecoin is much more than just a funny project. Although its main use remains the transfer of money quickly and with reduced taxes, it actually symbolizes the culture of cryptocurrencies and the power of online communities.
Is Dogecoin a good investment?
Although Dogecoin has a special place in the hearts of investors "Crypto-Entususes", its high volatility makes a risky option for those who want safe profits. However, for those who try to understand how Meme Coins work, it can be a good starting point.
Dogecoin success subsequently inspired the creation of other virtual currencies of this kind, such as Shiba Inu, Floki, Pepe and last but not least, the Memecoin launched by Donald Trump.
Shiba inu
As Dogecoin conquered the internet, an ambitious competitor began to shadow his fame. Shiba Inu was launched , self -proclaimed as the "Dogecoin killer". Like his bigger "brother", Shiba Inu is also inspired by the Baps of Japanese dogs Shiba Inu, but comes with some notable differences.
What does the inu shiba do?
Unlike Dogecoin, which was created more as a joke, Shiba Inu has a complex platform:
- Shibaswap , a dedicated users for users.
- Creative tokenomics , which include burning part of the coins to control the offer and increase the demand.
Another important aspect is related to the interest for long -term development . The Shiba Inu community, known as "Shibarmy", is active in the development of the ecosystem and takes care that the project remains relevant and innovative.
Is it shiba inu a good investment?
A number of investors believe that Shiba Inu is just another hype. Like Dogecoin, Shiba Inu is an extremely volatile virtual currency, being a suitable choice only for those willing to take the risk of losing much of the capital.
$ Trump
Unlike Dogecoin and Shiba Inu, $ Trump is more than a virtual currency, it is a political and cultural statement. This virtual currency is essentially a symbol for the supporters of US President Donald Trump. It uses the influence of the political environment on the online communities, taking advantage of their loyalty to the president.
The specificities of the $ Trump token include:
- The $ Trump token is launched on the Solana blockchain.
- Like most memecoins, $ Trump is extremely volatile. Its value can be influenced by factors such as market feeling, political news or activity on social networks.
- According to the available information, there are a total number of Trump official tokens set in one billion coins, of which 800 million are owned by Trump corporations, while 200 million are in circulation.
Is $ Trump more than a trend?
Although it seems intended for Donald Trump's loyal fans, cryptocurrency attracts a number of speculators who want to take advantage of the current popularity of this memecoin.
Can you find out more about $ Trump reading our article: " The deception with cryptocurrency launched by Donald J Trump? $ Trump a big sting?"
Are the memecoins an investment worth considering?
The emergence of Meme coins illustrates the ability of the Internet to model and influence the trends of financial markets. All, it is crucial to be aware of the related risks. Memecoins are among the most volatile classes of cryptocurrencies and should not be a significant part of anyone's portfolio.
Why don't we recommend investment in memecoin:
- Extreme fluctuations of value.
- Lack of real utility for most of them.
- Increased risk of "pump and dump".
Legality and regulations
Meme Coins caught the attention of regulatory authorities in different countries:
- Thailand forbade Meme Coins in 2021, declaring them active without "objectives or clear purpose."
- The UK has investigated the deceitful advertisements for Floki Inu, considering them non-compliance with the financial regulations in force.
Other types of virtual currencies
In addition to memecoins and consecrated cryptocurrencies, the world of virtual currencies is vast and diversified. Here are some other categories of virtual currencies worth mentioning:
Stablecoins
Stablecoins are virtual currencies designed to maintain a stable value and are usually related to a traditional financial asset such as US dollar, euro or even gold. This means that their value fluctuates much less than that of other virtual currencies.
Stablecoins are used mainly to:
- Facilitated fast and cheap transactions.
- Protect the funds of investors from the extreme volatility of the cryptocurrency market.
- Collaborate with decentralized financial applications (defi) to provide liquidity and stability.
Popular examples:
- Tether (USDT) - a stable currency anchored to the US dollar.
- USD COIN (USDC) - one of the most reliable stable currencies, having the support of reputable institutions.
- DA - DA - a stable decentralized currency, supported by the collateral in cryptocurrency.
Utility tokens (Utility Tokens)
Utility Tokens are those virtual coins that provide access to a product or service within a blockchain ecosystem. They are used to pay taxes, access special functions or participate in the governance process of a blockchain platform.
Popular examples:
- Basic Attention Token (BAT) - used in Brave browser to reward users and content creators.
- Filecoin (FIL) - offers decentralized storage and payments for use of the network.
These tokens are essential for supporting blockchain platforms and often provide additional benefits to holders, such as incentives or priority access.
Security tokens (Security Tokens)
Security Tokens are digital active that represents the property on a real asset, such as actions, bonds, real estate or other financial assets. They are considered securities and are subject to financial regulations.
Features and benefits:
- Security tokens holders may be entitled to dividends, profits or other financial benefits.
- Property information and transactions are recorded on blockchain, which makes them immutable and verifiable at any time.
- You can become the owner of the actions of a company or a real estate assets through a token.security tokens democratizes access to investments, allowing retail investors to participate in markets that were previously accessible to institutional investors.
Digital coins of central banks (CBDCs)
The CBDCs are virtual currencies issued by the central banks of the different countries, developed to provide a digital alternative to traditional physical coins (paper or coins). Unlike decentralized cryptocurrencies, CBDCs are fully centralized and regulated.
Why are they important?
- Increasing financial inclusion - provides access to financial services to populations that do not use banks.
- More effective transactions compared to traditional ones - faster and cheaper transfers.
- Greater control and transparency - helps central banks to monitor and better regulate the economy.
Virtual currency tax
Virtual currencies have become an important part of investment portfolios in recent years. However, with the profits the tax responsibilities also appear. If you have wondered what taxes you need to pay, when you are exempt from tax or what is the procedure to declare your income from cryptocurrency, read.
According to the Romanian legislation, if you have made a profit from the trading of virtual currencies, you must pay a 10% tax applied to the net profit. Profit is the difference between the purchase price and the cryptocurrency selling price.
When do you have to pay cryptocurrency tax?
Payment of tax is mandatory in the following cases:
- If you have obtained an annual profit from cryptocurrency greater than 600 lei .
- If you have converted cryptocurrencies into faithful currency (RON, EUR, USD, etc.).
When should you not pay tax?
There are also some important exceptions. You don't have to pay tax if:
- The total profit obtained from cryptocurrencies over a year is less than 600 lei.
- You bought cryptocurrencies, but you did not sell them or did not convert them into fiat money.
What cryptocurrencies are subject to tax?
According to Law 129/2019 , any digital representation of a value that can be traded, used as a means of exchange and generates profit is considered taxable. Whether it is Bitcoin, Ethereum or even a less popular "Meme Coin", if you generate win, it must be declared.
How do you pay the cryptocurrency tax?
Until May 26, 2025, you must complete form 212 (single statement) to report your income from cryptocurrency.
Steps for tax payment:
- Access the ANAF (SPV) portal or the e-government website.
- Fill in form 212.
- You have the option to send the form online or physical, by recommended post or directly to the ANAF headquarters in your area.
For exact details about completing the form, ANAF provides a detailed guide.
What happens if you don't pay the tax?
If you do not declare your earnings and you do not pay the tax, there are penalties and interest of 0.02% per day from the amount due. In the case of large amounts, non -payment can be considered tax evasion and you will risk severe sanctions, including imprisonment for tax fraud, if the amount exceeds 1 million lei .
More information on the income tax from cryptocurrency, here: " Crypto tax. Updated Guide March 2025"
ConCluSIonS
As the global economy continues to become more and more digitized, virtual currencies are ready to play an increasingly important role. Whether you are an experienced investor or novice in the world of digital currencies, prudent approach and continuous education is the key where you will manage to protect your capital.
If you want to deepen topics such as virtual currencies, blockchain technology or the role of Fiat coins in the global economy, we invite you to explore the Abara blog . Here you will find informative articles as well as a number of useful resources, specially created to help you make knowledge of the knowledge.
