Virtual currencies have become an increasingly popular topic among investors because of their potential to offer significant gains. If you’re new to virtual currencies or want to better understand what types of virtual currencies are and how you can use them, you’ve come to the right place.
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Monede virtuale: ce sunt si cum functioneaza
Cryptocurrencies, cryptoassets or virtual currencies (en. cryptocurrencies, cyptoassets, virtual currencies) are a digital representation of value or rights that can be transferred and stored electronically, using distributed ledger or similar technology, in accordance with the provisions of Article 3(1)(sbpct. (2) of the proposal for a Regulation of the European Parliament and of the Council on cryptoasset markets.
Put simply, virtual currencies are a form of digital asset, mainly used as a means of exchanging or storing value online. Unlike traditional money, they are completely decentralized, meaning they are not controlled by governments or central banks.
Key features of a virtual currency:
- Decentralization: No government or bank control.
- Anonymity: Users can trade without disclosing personal information, subject to certain requirements.
- High security: they use advanced cryptography to protect their networks and users.
- Fast transactions: international transfers can be completed in just a few minutes.
Main categories of virtual coins
In the virtual coins market, the various types of coins are categorized according to technology and uses as follows:
1. Established cryptocurrencies – virtual currencies with a solid track record and broad investor support.
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.
- Established cryptocurrencies – a guide for investors
Cryptocurrencies have gained popularity over the past decade, becoming a central element in the strategies of many modern investors. Among the thousands of virtual currencies available on the market, there are a few “established” cryptocurrencies that have stood the test of time and proved to be viable alternatives to traditional investments.
What are established cryptocurrencies?
Established cryptocurrencies are those virtual currencies that have a solid track record, large market capitalization and massive usage. The best-known examples include Bitcoin (BTC) and Ethereum (ETH), but other coins such as Litecoin (LTC), Solana (SOL) or Ripple (XRP) are also considered trusted.
These virtual currencies have proven over time to be 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 by the pseudonym Satoshi Nakamoto, ushered in the era of virtual currencies, offering a decentralized financial alternative, independent of any central authority.
Over the years, bitcoin has become a “digital gold,” and today it is an established cryptocurrency with the largest market capitalization. From an initial value near zero, bitcoin currently trades at prices in the tens of thousands of dollars per unit.
Ether (ETH)
Launched in 2015, Ethereum introduced a revolutionary concept – smart contracts. Thus, blockchain technology began to be used not only for conducting decentralized transactions, but also for automating processes based on predefined conditions.
The Ethereum network has become the main platform for many decentralized applications (dApps), contributing to the development of innovative solutions in sectors such as finance, insurance, supply chains and many others.
Why should you choose established virtual currencies for investing?
Securitate sporită
Established cryptocurrencies benefit from advanced security technologies and highly robust decentralized networks. Compared to newer projects, they have been constantly tested and improved over the years.
Potențial crescut de randament
Well-established cryptocurrencies are known for their high potential to deliver significant long-term profits. Bitcoin, for example, has grown from a few cents in 2010 to tens of thousands of dollars today.
Adopție globală și lichiditate crescută
The main advantage of established cryptocurrencies is their widespread adoption.
This translates to:
- High liquidity means you can buy or sell these assets quickly and easily.
- Acceptance in more and more sectors, from e-commerce to everyday payments.
What’s more, the support that large financial institutions such as PayPal and Mastercard are giving to these established virtual currencies is strengthening their position in the market.
Comunități puternice
Every established cryptocurrency is backed 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 Bitcoin community, known for its constant work to develop and promote blockchain technology.
Established cryptocurrencies are the ideal choice for investors who want stability, transparency and high growth potential, representing long-term investments with promising prospects.
Ce sunt memecoin-urile si de ce sunt populare?
Memecoins are virtual currencies inspired by memes or viral online jokes and phenomena. They differ from traditional cryptocurrencies in that they usually have no solid functionality or obvious utility. Instead, they gain popularity through viral promotions, cultural events and support from public figures.
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 features a Shiba Inu dog with funny expressions and Comic Sans text. But what was originally intended as a fun project for the crypto community has turned into a global phenomenon.
Today, Dogecoin is much more than just a fun project. Although its main use remains as a fast and low-fee money transfer, it actually symbolizes cryptocurrency culture and the power of online communities.
Is Dogecoin a good investment?
Although Dogecoin has a special place in the hearts of crypto-enthusiast investors, its high volatility makes it a risky option for those who want safe profits. However, for those trying to understand how meme coins work, it can be a good starting point.
The success of Dogecoin has subsequently inspired the creation of other such virtual currencies, 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 overshadow its fame. In 2020, the Shiba Inu, the self-proclaimed ‘Dogecoin killer’, was launched. Like its big ‘brother’, the Shiba Inu is also inspired by the Japanese Shiba Inu dog breed, but comes with a few notable differences.
What makes the Shiba Inu different?
Unlike Dogecoin, which was created more as a joke, Shiba Inu has a complex platform:
- ShibaSwap, a dedicated exchange for users.
- Creative tokenomics, which include burning part of the coins to control supply and increase demand.
Another important aspect is the interest in long-term development. The Shiba Inu community, known as the “ShibArmy”, is active in the development of the ecosystem and is keen to keep the project relevant and innovative.
Is the Shiba Inu a good investment?
A number of investors believe that Shiba Inu is just another hype. Just like Dogecoin, Shiba Inu is a highly volatile virtual currency, making it a suitable choice only for those willing to take the risk of losing a good chunk of their 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 supporters of US President Donald Trump. It leverages the influence of the political environment on online communities, capitalizing on their loyalty to the president.
Specifics 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 sentiment, political news or social media activity.
- According to available information, there is a total number of official Trump tokens pegged at one billion coins, of which 800 million are owned by Trump-owned corporations, while 200 million are in circulation.
Is $TRUMP more than a trend?
Although it seems aimed at Donald Trump’s loyal fans, the cryptocurrency is attracting a number of speculators who want to cash in on the memecoin’s current popularity.
You can learn more about $TRUMP by reading our article: “Cryptocurrency scam launched by Donald J Trump? $Trump a big scam?”
Are memecoins a worthwhile investment?
The emergence of meme currencies illustrates the ability of internet culture to shape and influence trends in financial markets.However, it is crucial to be aware of the risks involved. Memecoins are among the most volatile classes of cryptocurrencies and should not be a significant part of anyone’s portfolio.
Why we do not recommend investing in memecoin:
- Extreme fluctuations in value.
- Lack of real utility for most of them.
- Increased risk of “pump and dump”.
Legality and Regulations
Meme coins have attracted the attention of regulators in different countries:
- Thailand banned meme coins in 2021, declaring them active without “clear objectives or purpose.”
- TheUK has investigated misleading advertisements for Floki Inu as not complying with financial regulations.
Other types of virtual coins
Besides the established memecoins and cryptocurrencies, the world of virtual currencies is vast and diverse. Here are some other categories of virtual currencies worth mentioning:
Stablecoins
Stablecoins are virtual currencies designed to maintain a stable value and are usually linked to a traditional financial asset such as the US dollar, the euro or even gold. This means their value fluctuates much less than other virtual currencies.
Stablecoins are mainly used to:
- Facilitate fast and cheaptransactions.
- Protect investors’ funds 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 pegged to the US Dollar.
- USD Coin (USDC) – One of the most reliable stable currencies, backed by reputable institutions.
- DAI – A decentralized stable currency backed by cryptocurrency collateral.
Utility Tokens
Utility tokens are those virtual currencies that provide access to a product or service within a blockchain ecosystem. They are used to pay fees, access special features or participate in the governance process of a blockchain platform.
Popular examples:
- Basic Attention Token (BAT) – Used in the Brave browser to reward users and content creators.
- Filecoin (FIL) – Offers decentralized storage and payments for network usage.
These tokens are essential to support the functioning of blockchain platforms and often provide additional benefits to holders, such as incentives or priority access to services.
Security Tokens
Security tokens are digital assets that represent ownership of a real asset, such as stocks, bonds, real estate or other financial assets. They are considered securities and are subject to financial regulation.
Features and benefits:
- Holders of security tokens may be entitled to dividends, profits or other financial benefits.
- Property and transaction information is recorded on the blockchain, making it immutable and verifiable at all times.
- Security tokens democratize access to investment, allowing retail investors to participate in markets that were previously only accessible to institutional investors.
Central Bank Digital Currencies (CBDCs)
CBDCs are virtual currencies issued by the central banks of different countries, developed to provide a digital alternative to traditional physical currencies (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 unbanked populations.
- More efficient transactions compared to traditional – Faster and cheaper transfers.
- Greater control and transparency – Helps central banks better monitor and regulate the economy.
Virtual coins tax
Virtual currencies have become an important part of investment portfolios in recent years. But with profits come tax responsibilities. If you’ve wondered what taxes you have to pay, when you’re tax-free or what the procedure is for declaring your cryptocurrency income, read on.
Under Romanian law, if you made a profit from trading virtual currencies, you have to pay a 10% tax on the net gain. The profit is the difference between the buying and selling price of the cryptocurrency.
When do you have to pay tax on cryptocurrencies?
Tax is payable in the following cases:
- If you have an annual cryptocurrency profit of more than 600 lei.
- If you converted cryptocurrencies into fiat currency (RON, EUR, USD, etc.).
When do you NOT have to pay tax?
There are some important exceptions. You don’t have to pay tax if:
- The total profit from cryptocurrencies in a year is less than 600 lei.
- You’ve bought cryptocurrencies but not sold them or converted them into fiat money.
Which cryptocurrencies are subject to tax?
According to law 129/2019, any digital representation of a security that can be traded, used as a medium of exchange and generates profit is considered taxable. Whether it’s Bitcoin, Ethereum or even a less popular “meme coin”, if you generate gain, it must be declared.
How do you pay tax on cryptocurrencies?
By May 26, 2025, you must file Form 212 (single return) to report your cryptocurrency income.
Steps to pay your tax:
- Access the ANAF portal (SPV) or the e-government website.
- Fill in Form 212.
- You have the option of sending the form online or physically, by registered mail or directly to the ANAF office in your area.
For exact details on filling in the form, ANAF provides a detailed guide.
What happens if you don’t pay your tax?
If you don’t declare your earnings and pay the tax, there are penalties and interest of 0.02% per day of the amount due. For large amounts, non-payment can be considered tax evasion and you risk severe penalties, including imprisonment for tax fraud if the amount exceeds 1 million lei.
More information on cryptocurrency income tax here: “Crypto Tax. Updated guide March 2025″
Conclusions
As the global economy continues to become increasingly digitized, virtual currencies are poised to play an increasingly important role. Whether you’re an experienced investor or a novice to the world of digital currencies, a prudent approach and continued education is the key to protecting your capital.
If you want to delve deeper into topics such as virtual currencies, blockchain technology or the role of fiat currencies in the global economy, we invite you to explore the Abarai blog. Here you’ll find informative articles as well as a number of useful resources designed specifically to help you make informed investment decisions.