Altcoins & Tokens
Exploring the world beyond Bitcoin: Ethereum, stablecoins, meme coins, and more
Coin vs Token: rΓ³ΕΌnice
πͺ Coin: a cryptocurrency with its own blockchain: β’ Bitcoin (BTC), Bitcoin blockchain β’ Ethereum (ETH), Ethereum blockchain β’ Solana (SOL), Solana blockchain β’ Cardano (ADA), Cardano blockchain
π Token: a cryptocurrency built ON ANOTHER blockchain: β’ USDT (Tether), stablecoin on Ethereum/Tron β’ LINK (Chainlink), ERC-20 token on Ethereum β’ SHIB (Shiba Inu), meme token on Ethereum β’ UNI (Uniswap), governance token
π Token standards: β’ ERC-20, standard on Ethereum (most popular) β’ BEP-20, standard on BNB Chain β’ SPL, standard on Solana
Stablecoins: Digital Dollars
π΅ Stablecoins are cryptocurrencies whose price is pegged to a fiat currency (e.g., USD).
π Top stablecoins: β’ USDT (Tether): ~$83 bn market cap, most liquid β’ USDC (Circle): regulated, transparent β’ DAI: decentralized MakerDAO stablecoin β’ TUSD: fully backed by reserves
π― What are they used for? β’ Protection against market volatility β’ Fast international transfers β’ Liquidity on exchanges (trading pairs) β’ Yield farming in DeFi
Cryptocurrency Market Dominance
Bitcoin still dominates, but its market share is gradually decreasing.
Beware of meme coins!
β οΈ Meme coins (DOGE, SHIB, PEPE, WIF) can yield huge profits, but also huge losses!
π° Characteristics of meme coins: β’ Lack of real technological utility β’ Value driven by hype and social media β’ Extremely volatile: 50-90% gains and losses in days β’ Frequent rug pulls (creators run away with the money)
π‘ Rule: Invest in meme coins ONLY amounts you are 100% prepared to lose!