Investing in cryptocurrencies can be confusing in the beginning because there are so many technical words to understand. Understanding the differences between altcoins and stablecoins is crucial.
All stablecoins are altcoins, but not all altcoins are stablecoins. Is it confusing?
This article looks into the differences between altcoins and stablecoins to help you navigate your journey in the crypto space.
What are Altcoins
Altcoins are any cryptocurrency that is not Bitcoin (BTC). Although some people also refer to altcoins as any currency that is not ETH since Ethereum is the first blockchain to support smart contracts. For this reason, BTC and ETH are the two most widely used cryptocurrencies worldwide. However, by definition, ETH is considered an altcoin.
Undoubtedly, the first and most widely known cryptocurrency issued in the market now is BTC, representing around 45% to 70% of the total crypto market value. Though ETH has not gained as much popularity as BTC, it is, nonetheless, well-known and controls a sizeable portion of the market.
Since Bitcoin dominates the crypto market, all other cryptocurrencies for sale and trade are now referred to as “altcoins” or alternative coins. At present, there are thousands of alternative coins that can be traded on various exchanges.
Due to the decentralized and international nature of the industry and the fact that anybody can launch a cryptocurrency, it is unlikely to be able to determine the precise number of altcoins.
Bitcoin and altcoins have a lot of similarities. Both are digital currencies that use secure open ledgers built on the blockchain to record and keep track of every transaction.
However, some altcoins have unique characteristics that make them an alluring substitute for Bitcoin. For instance, some altcoins offer higher privacy or faster transaction times than Bitcoin. Others use various staking programs to reward users.
Thousands of altcoins are available on the market, but the most widespread are Cardano (ADA), Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC).
What are Stablecoins
Stablecoins are altcoins that keep their value constant regardless of market volatility.
Each is distinguished by the method employed to uphold the 1-is-to-1 peg to its corresponding fiat currency. Simply, it is a currency with a set and defined value.
For instance, the BUSD stablecoin is fixed at $1 to the US dollar. Consequently, 1 BUSD is always equal to $1. They are created to operate just like fiat currencies that are present on the blockchain.
Stablecoins are correlated to widely used fiat currencies like the US dollar, the Euro, or the Chinese Yuan. Some are also pegged to precious metals like gold.
A stablecoin is a cryptocurrency that is currently the most reliable and stable. The values of most stablecoins fluctuate during high crypto trading activity, but they rapidly revert to their typical levels.
The most popular stablecoins include Binance USD (BUSD), TrueUSD (TUSD), Tether (USDT), Dai (DAI), and Pax Dollar (USDP).
Stablecoins and Altcoins Trading with Riverex
Nowadays, more and more cryptocurrency investment opportunities have emerged. The top widespread and acknowledged crypto investments include altcoins and stablecoins.
If you’re up to investing in crypto, an easy way to begin is through the Riverex platform. Riverex is a decentralized exchange that offers an in-chat feature, allowing traders to buy or swap altcoins and stablecoins in an entirely peer-to-peer manner.
It even permits cross-chain atomic swaps using smart contracts, with over 260 stablecoins and altcoins listed across five blockchains.
With the recent update, Riverex launched the ICO of its token, WELLE, which will run through January 2023. WELLE uses the ERC-20 standard and will fuel the products and services accessible on the Riverex platform.
WELLE can be used to pay Riverex fees and will allow users to stake and earn profits. Users can now buy WELLE on the Riverex platform through its chat room feature using stablecoins. Riverex has created a step-by-step process to help you transact easily.
Alternatively, the token can be swapped in the Riverex liquidity pool using stablecoins. If you are holding WELLE already, you can create a liquidity pool and earn commissions on every swap to maximize your profits.
Riverex made it easier for users to navigate through the platform. A manual on the liquidity pool has been created for easier transactions.
You can also follow the official Telegram Channel to get the latest updates on the Riverex platform and its token.