📰 What is the difference between an altcoin and a stablecoin? The key to understanding your crypto portfolio 🔑
In the world of cryptocurrencies, not all digital currencies serve the same purpose. There are two types you should know if you want to build a solid portfolio: altcoins and stablecoins.
👉 Altcoin (Alternative Coin):
These are all cryptocurrencies that are not Bitcoin.
Examples: Ethereum (ETH), Solana (SOL), XRP, Cardano (ADA).
They are characterized by having high volatility, which means their price can rise or fall abruptly in a short time.
They are used for investing, speculating, and in many cases to take advantage of innovative projects within the blockchain ecosystem.
They are risk coins, but also present great opportunity.
👉 Stablecoin (Stable Coin):
These are cryptocurrencies designed to maintain a fixed value, generally pegged to the US dollar (1 USDT ≈ 1 USD).
Examples: USDT (Tether), USDC (USD Coin), BUSD (Binance USD).
Their goal is not to grow in price, but to protect your capital during times of high volatility.
They function as a "safe harbor" for traders and investors seeking stability while waiting for new opportunities in the market.
⚡ The essential difference is simple:
Altcoin = volatility, opportunity, risk.
Stablecoin = stability, safeguarding, liquidity.
A good trader knows how to combine both: altcoins for seeking profitability and stablecoins for protecting their gains.
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