Altcoins are the alternatives of Bitcoin. They are cryptocurrencies, just not Bitcoin. Some of the well-known altcoins are Ethereum, Ripple and Litecoin.
As altcoins are not as well-known as Bitcoin, the first ever cryptocurrency, it is reasonable that the volatility for the altcoin market is relatively lower. Though it’s not exactly a good thing when it comes to cryptocurrency trading, this has make the transaction fee for altcoins much more lower than Bitcoin’s.
For instance, the transaction fee needed for Ripple is just a fraction of the amount Bitcoin transaction is charging. Hence, Altcoins users can enjoy cheaper and faster transactions due to the lower volatility they have.
Although cryptocurrencies have gained widespread adoption, traders and investors are still skeptical about the hopping on board the crypto train as the market volatility can get pretty unpredictable. Therefore, stablecoins were developed to limit the crazy volatility and price fluctuations.
It is one of the altcoins that has the special characteristic less subject to volatility. Stablecoins such as Tether (USDT) are digital currencies that is linked to an underlying asset such as national currency or a precious metal such as gold.
These coins are pegged to a fiat currency, usually in a 1–1 ratio. It mimics the features of fiat currency to achieve price stability. Enabling stablecoin users to enjoy fast transactions with low price fluctuations.
In short, be it altcoins or stablecoins, they are all in the cryptocurrency fam with different characteristics. Stablecoins can be a good store of value with low volatility. However, volatility might be just what you need if you are planning to trade. Altcoins may experience higher volatility, more profitable, but also high risk at the same time.
It is paramount to be clear on your investment goals and needs before you decide to invest in any kind of cryptocurrencies. So make your choice wise.
