BitcoinIntermediate

Cryptocurrency vs Bitcoin: how they differ

Bitcoin is one cryptocurrency in the wider crypto category. Bitcoin has no company owner, while many other cryptos are run by companies or foundations.

Vahe HakobyanEditor-in-chief Updated Oct 5, 20263 min readFact-checked

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On this page

What are the main differences?How are they used and available?How does US regulation treat them?What risks do they carry?FAQ

Key takeaways

US spot bitcoin ETFs hold bitcoin through a custodian.
The IRS treats cryptocurrency as property.
Some other cryptos add issuer or code risk.

Short answer

Bitcoin is one cryptocurrency, while cryptocurrency is the wider category of blockchain-based digital assets. Bitcoin has no company owner, and many other cryptos are run by companies or foundations.

The two terms are not the same, and the differences matter for how each is run and used. You can check Bitcoin price and market data on its coin page, and the Bitcoin blockchain page shows live network data. A separate guide explains who created Bitcoin.

What are the main differences?

Cryptocurrency is the broad asset class, and Bitcoin is one member of it. Bitcoin has no company owner, while many other cryptocurrencies are run by companies or foundations. Bitcoin uses mining to confirm payments, and other cryptos vary in design.

Bitcoin and the wider crypto category compared
Criterion	Bitcoin	Cryptocurrency
Scope	One cryptocurrency	A broad asset class
Ownership	No company owner	Often a company or foundation
Design	Uses mining (proof of work)	Varies; some use proof of stake

How are they used and available?

Bitcoin uses mining to confirm transactions and acts as digital money for sending and receiving payments. Other cryptocurrencies vary in design. In the US, the SEC approved the first spot bitcoin ETFs in January 2024, and those funds hold bitcoin through a custodian. Funds for other cryptocurrencies are limited and changing.

How does US regulation treat them?

The IRS treats cryptocurrency as property, so selling or trading it usually creates a capital gain or loss. The SEC oversees crypto assets sold as securities, while the CFTC oversees derivatives on crypto commodities like bitcoin. Roles differ by asset.

What risks do they carry?

Bitcoin's price swings widely, and crypto has seen repeated cycles of growth and drops. Lost keys usually cannot be recovered, so custody mistakes can be permanent.

Pros

Transfers settle on a public network.
Other cryptos can support tokens and apps.

Cons

Some other cryptos carry issuer or code risk.
Bitcoin mining uses large amounts of electricity.

Bitcoin price todayLive price, charts and market data live in our Coins section.

Frequently asked questions

No. Bitcoin is a cryptocurrency, and the blockchain is the ledger that records its transactions.

Bitcoin was the first, and later projects tried different features like faster payments or apps. Some are run by companies or foundations.

A coin is a cryptocurrency with its own blockchain, and bitcoin is one. A token usually runs on an existing blockchain.

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Written byVahe HakobyanVahe Hakobyan is the editor-in-chief of World-Crypt. He covers bitcoin, markets and regulation, and leads the newsroom that fact-checks every story before it goes live.