Altcoin vs Stablecoin: Frequently Asked Questions
Confused about altcoins and stablecoins? Here are answers to the most commonly asked questions about these cryptocurrencies.
What is the difference between an altcoin and a stablecoin?
Altcoins are any cryptocurrencies other than Bitcoin. They can have a wide range of uses and their prices can go up or down a lot; sometimes very quickly.
Stablecoins are a special type of cryptocurrency designed to keep their value steady, usually by tying their price to something like the US dollar. This makes stablecoins much less risky if you want to avoid wild price swings.
Summary:
- Altcoins: They serve many purposes, and their prices can fluctuate significantly.
- Stablecoins: Meant to be steady and “stable” in price, which is often about $1.
What are the 4 types of stablecoins?
There are four main types of stablecoins:
- Fiat-collateralised: Backed by regular money like US dollars (e.g., USDT, USDC).
- Crypto-collateralised: Backed by other cryptocurrencies like Ethereum (e.g., DAI).
- Commodity-backed: Backed by stuff like gold (e.g., PAX Gold).
- Algorithmic: Not backed by anything physical—these use computer code to adjust supply and keep the price steady.
Is USDT an altcoin?
Yes, it is both an altcoin (since it’s not Bitcoin) and specifically a stablecoin because it’s designed to be tied to the value of the US dollar.
Is Bitcoin a stablecoin?
No, Bitcoin is not a stablecoin. Its price can go up and down a lot.
Is BTC an altcoin?
No. Bitcoin (BTC) is the first cryptocurrency ever created, so “altcoin” actually means “alternative to Bitcoin.” Every other cryptocurrency that isn’t Bitcoin is an altcoin.
What is an example of an altcoin?
Ethereum is a classic example. So are XRP, Solana, Litecoin, Cardano, and Dogecoin.
Which coin is the next Bitcoin?
There’s no single “next Bitcoin.” Ethereum is the most popular alternative, but no coin or token has yet replaced Bitcoin as the biggest or most famous cryptocurrency.
Who created Bitcoin?
Bitcoin was invented by a person or group using the name Satoshi Nakamoto. Their real identity is still a mystery.
Is USDT a stablecoin?
Yes, USDT (also known as Tether) is a stablecoin. Its value is pegged to the US dollar.
What is the strongest stablecoin?
“Strongest” could mean safest, most used, or most stable. Right now, the most trusted stablecoins are USDT (Tether), USDC (USD Coin), and DAI. They are popular because they are widely used in trading and have a reputation for being stable.
Who invented stablecoins?
There’s no single person. Stablecoins got popular as crypto evolved, because people wanted a way to avoid significant price swings. However, Tether (USDT) was one of the first and most influential stablecoins.
Who controls USDT?
Tether Limited is the company behind USDT. This company manages and audits the reserves that keep the coin’s value tied to the dollar.
What's the opposite of an altcoin?
The opposite of an altcoin is Bitcoin, since “altcoin” means every cryptocurrency that isn’t Bitcoin.
How much is 1 USDT coin in naira?
As of today, 1 USDT is very close to the value of 1 US dollar. The US dollar to naira exchange rate changes often. To know the latest value, check our currency exchange calculator.
Is gold a stablecoin?
Gold itself is not a stablecoin, but some stablecoins (like PAX Gold or Tether Gold) are tied to the value of gold.
Is Ethereum a stablecoin?
Ethereum is not a stablecoin. Its price can swing up or down a lot, just like Bitcoin. Ethereum is an altcoin.
What is the difference between a token and a stablecoin?
- “Token” is a general word for any digital coin. Think of it as a category.
- A “stablecoin” is a special kind of token designed to keep its value steady.
Is stablecoin legal?
In many countries, stablecoins are allowed, but rules can be different depending on where you live. Some governments, such as the US and UK, are creating new laws and regulations for them as they become more popular.
Which type of coin is BTC?
BTC is a cryptocurrency and the original one. It is NOT a stablecoin or an altcoin.
What is satoshi stablecoin?
There is no well-known coin called “Satoshi stablecoin.” However, “satoshi” is the smallest unit of Bitcoin (like cents to a dollar).
What are the biggest altcoins?
- Ethereum (ETH)
- Cardano (ADA)
- Solana (SOL)
- XRP (Ripple)
- Binance Coin (BNB)
Should I buy Bitcoin or altcoins?
- Bitcoin: Less risky, seen as the “main” crypto.
- Altcoins: Can go up or down more quickly. Bigger risk, but sometimes bigger reward.
- Beginners often start with Bitcoin.
What crypto is better than Bitcoin?
No coin has beaten Bitcoin overall in terms of fame or size, but some altcoins have grown quickly or have unique uses (like Ethereum for smart contracts).
Which is the first altcoin?
Litecoin (LTC) is generally considered the first altcoin, launched in 2011.
How to buy altcoin?
- Create an account on a crypto exchange (like Obiex).
- Add money to your account.
- Search for the altcoin you want and buy it on the platform.
- Always use secure passwords and never share private info.
Is Bitcoin Cash considered an altcoin?
Yes. Bitcoin Cash is a separate coin from Bitcoin, created to process transactions faster. It is an altcoin.
Which crypto coins are stablecoins?
Popular examples:
- USDT (Tether)
- USDC (USD Coin)
- DAI
- Tether Gold (XAUT)
- PAX Gold (PAXG)
Disclaimer: This article was written to provide guidance and understanding. It is not an exhaustive article and should not be taken as financial advice. Obiex will not be held liable for your investment decisions.
