Altcoins: what are they and which coins are worth paying attention to?

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Alternative cryptocurrencies that emerged after Bitcoin. ‘What are altcoins?’ is no longer a question for newcomers to cryptocurrencies, as it is a whole world of digital assets in which each coin plays a unique role. While Bitcoin has already established itself as digital gold, altcoins are becoming new tools that embody blockchain technology and financial progress.

Each altcoin tackles a specific challenge: smart contracts, decentralised applications, stable currencies, and payment systems. They are based on blockchain technologies, like Bitcoin, but the functions and features differ greatly. Ethereum, for example, enables the development of smart contracts, making it the basis for the creation of most decentralised applications (dApps) and becoming a pillar of innovation in the blockchain world.

The new cryptocurrencies aim to expand the use of digital currencies and create new prospects for investors and developers.

Types of altcoins and their functions

Utility Coins – used to access services on specific platforms (e.g., Ethereum).
Stablecoins – linked to traditional assets such as the dollar or gold, making them less volatile (Tether is a classic example).
Security tokens (security tokens) – these are digital assets backed by real assets or projects.
Privacy tokens (anonymous tokens) – emphasise the protection of the privacy of transactions (e.g., Monero).

Each type performs unique tasks, making them particularly attractive for different purposes.

Differences between altcoins and Bitcoin: what are their strengths?

Although Bitcoin remains the benchmark of the cryptocurrency market, the differences play an important role in the development of the sector. The main one is purpose: Bitcoin was created as a decentralised payment system and digital gold, while many altcoins were developed to implement specific functions.

The latter are characterised by fast transactions, extensive functionalities, and the ability to use smart contracts. Ethereum, for example, has become the main platform for decentralised finance (DeFi) and the launch of ICOs. However, we should not forget the pitfalls: any token of this type carries risks, from sharp fluctuations in the exchange rate to the lack of adequate user support.

The most promising altcoins to invest in

The market is full of opportunities for investors, but not all projects are equally promising. Here are the top altcoins that deserve attention:

Ethereum (ETH) – the undisputed leader, underpinning the development of smart contracts and decentralised applications, which has become an engine of digital innovation.
Cardano (ADA) – an innovative blockchain that focuses on security and scalability.
Polkadot (DOT) – a bridge between different blockchains that greatly simplifies the exchange of data and transactions, and creates a single space for interaction between decentralised systems.
Solana (SOL) – one of the fastest, capable of processing thousands of transactions per second, making it attractive to DeFi.
Chainlink (LINK) – a network that lets smart contracts interact with the real world, opening up new opportunities for blockchain solutions.

How do you choose an altcoin to invest in?

Investing requires careful thought and analysis. Here are some criteria to help you make the right decision:

Technology base: examine the underlying technology. Ethereum-based smart contracts, for example, offer a number of opportunities.
Development team – success depends on the professionalism of the team and their ability to develop the project.
Long-term prospects – it is worth evaluating development plans and future partnerships.
Volatility – pay attention to the history of price fluctuations.

Advantages and disadvantages of altcoins: pros and cons

Advantages:

Variety of features and technologies.
Faster transaction processing compared to Bitcoin.
Opportunities for innovation through smart contracts and DeFi.

Disadvantages:

High volatility of many altcoins.
Lack of liquidity in some projects.
Risks due to inadequate regulation and technical issues.

Altcoins and the law in Russia: important nuances

Russian law treats cryptocurrencies with caution. There are a number of restrictions regarding their legalisation and use. Nevertheless, the cryptocurrency market is developing and the legal framework is gradually starting to adapt to the new reality.

As of today, owning cryptocurrencies is allowed in Russia, but using them as a means of payment is still prohibited. Investments in altcoins are allowed, but subject to reporting and tax rules.

Altcoins and NFT: interacting in the digital world

The market is rapidly gaining momentum. NFTs (non-replaceable tokens) built on altcoin blockchains such as Ethereum open up unique horizons for buying and selling digital assets and create a new reality of ownership in the digital world.

Many altcoins offer platforms for creating and trading NFT, opening doors for artists, collectors and investors. This interaction is becoming an important element of today’s crypto market.

What are altcoins and are they worth investing in?

A potentially profitable but risky strategy. Altcoins offer great opportunities to participate in the digital economy, whether through smart contracts, DeFi or NFT. But it is important to be aware of the risks: volatility, technical complexity and legal barriers.

So the decision to invest should be based on a thorough analysis of the market and understanding of all potential risks and opportunities.

Stablecoin: What it is in simple terms, where it is used

Cryptocurrencies are known for their high volatility, but there are exceptions. Stablecoins are digital assets that are pegged to a stable currency, such as the dollar. They are designed to provide a more predictable value and protect savings from sudden market fluctuations.

In this article, we will explain in a simple way what stablecoins are and why they are a valuable asset worth considering.

Why traditional currencies are no longer enough

Imagine traveling to another city and needing to transfer money to buy a house. If you transfer money through traditional banks, you may encounter several problems. First, the translation period is long. Second, possible assignments. But most importantly, you are at risk due to exchange rate fluctuations.

Now it is worth returning to the question of why stablecoins are needed and what they are in simple terms. It is a financial instrument that is not subject to exchange rate fluctuations like fiat money and does not raise concerns about changes in exchange rates like cryptocurrencies. These digital assets offer stability because their value is directly linked to the value of a trusted currency, such as the US dollar. It is stable despite inflation, and cryptocurrencies such as USDT help users protect their money from volatility. This means that if the dollar is worth 1, a dollar-based stablecoin will always be worth 1 dollar, regardless of what happens in the market.

Stablecoins allow users to transact and protect themselves from inflation without having to worry about large price fluctuations. They have become especially popular in cryptocurrency ecosystems, where high volatility can be a serious problem for traders and investors.

What types of stablecoins exist, and how do they differ?

There are three main categories:

Backed by fiat currencies. An example is USDT (Tether), which is pegged to the US dollar. The value of each token is always equal to one dollar.
Backed by cryptocurrencies. Simply put, these stablecoins are assets backed by cryptocurrencies (ether or bitcoin). One of the most notable representatives of this type is DAI. The advantage of this approach is that the risks associated with fiat currency inflation are reduced while maintaining a peg to a stable price.
Algorithmic stablecoins. They are not backed by any assets, but are stabilized by algorithms that regulate the number of coins in circulation based on demand. An example is Ampleforth (AMPL), which uses complex mechanisms to balance value.

How stablecoins work: We explain in a simple way and with examples what happens in such a process.

A stablecoin is a cryptocurrency with a guaranteed price. Since the assets are pegged to fiat currencies, their value will not fluctuate as much as Bitcoin or Ethereum. For example, if Bitcoin suddenly drops in value by 10% in one day, the stablecoin will remain stable.

How does this work? When USDT is pegged to the dollar, its value is adjusted to always remain at 1 USD. If the price of a token drops below the threshold, new stablecoins are automatically added to the market to bring the price back to the right level. If the price rises, the tokens are burned to reduce the supply and bring the price back to the dollar level. Constant adjustment maintains stability.

Stablecoin and USDT: What is the Connection?

USDT (Tether) is one of the most popular stablecoins that, simply put, is backed by the US dollar. Each token is pegged to the real value of the dollar, making it a useful tool for crypto transactions.

If you want to transfer money or exchange money safely without the risk of losing money due to exchange rate fluctuations, you can use USDT. Stablecoins have become indispensable for traders and investors because they minimize the risk associated with volatility. For example, during periods when the cryptocurrency market is down, many investors move their holdings to Tether to protect their funds from the downturn.

What are the risks of using stablecoins, and should I be afraid of them?

Like any financial instrument, digital assets are not without risk. First, there is the possibility of depreciation. Stablecoins are pegged to fiat currencies and their stability depends on the economic situation. If the US dollar loses value significantly, currencies pegged to the dollar will also lose value.

Second, there is a legal risk. In some countries, governments impose restrictions on the use of cryptocurrencies, including stablecoins, or even ban their use altogether. In Russia, for example, possible measures to regulate cryptocurrencies are already being discussed to prevent circumvention of the law.

Another risk associated with stablecoins is their potential volatility. Although tokens are pegged to fiat money, they are subject to price fluctuations depending on various factors.

Stablecoins and Russian law: what you need to know

This is a rather complicated topic. In Russia, cryptocurrencies are currently not adequately regulated. Although in recent years there has been discussion about the possibility of adopting new laws that would legalize the use of cryptocurrencies in financial transactions.

Currently, the Russian authorities do not officially recognize stablecoins as a legal form of payment, but many entrepreneurs and individuals are increasingly using them to make payments in crypto transactions.

Where and how stablecoins can be used in real life

The use of stablecoins is becoming increasingly popular in various sectors. For example, cryptocurrency exchanges are actively using them to minimize exchange rate fluctuations during the transaction process. Assets are also used to make payments in online games and on various platforms, such as Amazon and eBay, where cryptocurrencies are accepted.

In addition, financial instruments are increasingly used for transfers between countries, due to their low costs and instant settlement. In Venezuela, Turkey and other countries where traditional currencies are losing value, stablecoins are becoming a way to save money and make payments.

Stablecoins as an alternative to traditional currencies

The future of digital money looks promising. They are now starting to take a significant position in cryptocurrency systems and their use could have a major impact on the financial markets. Simply put, stablecoins are more reliable instruments that can become an important part of the global financial ecosystem, even in everyday transactions, as they help avoid the inflationary risks inherent in traditional currencies.

In the coming years, we expect to see coins increasingly used for everyday payments as an alternative to bank cards and e-wallets. In Russia, for example, the introduction of digital assets at the state level is already being discussed, which will give new impetus to the use of stablecoins in various sectors of the economy, from trade to services. Predictions indicate that this technology will become an integral part of the global financial infrastructure in the future.

Let’s summarize

The answer to the question “what is a stablecoin?” It can be the following: Simply put, it is a cryptocurrency whose value is linked to a stable currency, which guarantees its reliability and protection from sudden fluctuations. Unlike traditional money, instant transfers and low fees are possible, which makes them convenient for international transactions. The emergence of stablecoins not only broadens the horizons of financial technologies, but also helps to overcome many problems inherent in modern economic systems.

April 24, 2025

Most Popular Stablecoins by Market Cap: Cryptocurrency List

Stablecoins provide a financial foundation in the volatile world of cryptocurrencies. Investors, traders, and businesses use them to protect their assets from market fluctuations. Which stablecoins will be at the top of the list in 2024, and why are they worth watching? This article examines the most popular assets, features, and selection criteria.

What are stablecoins, and why are they necessary?

Stablecoins are a type of cryptocurrency whose price is pegged to a stable asset, such as the US dollar or the euro. The coins minimise the risks associated with the volatility of traditional cryptocurrencies. These assets have become indispensable for traders, investors, and businesses conducting international transactions. They enable fast transfers with minimal fees and offer the ability to store money digitally without losing its value.

The list of stablecoins includes coins with different collateral mechanisms: fiat reserves, cryptocurrency collateral, and algorithmic regulation.

Main types:

Fiat currencies use reserve funds to maintain their exchange rate. In this way, each USDT is backed by real dollars in the issuer’s accounts. These currencies offer a high degree of stability and transparency.
Cryptocurrency-based investments rely on collateral in the form of other cryptocurrencies. DAI ensures stability through smart contracts and cryptographic collateral. This approach avoids the influence of traditional financial systems.
Algorithms regulate the supply of coins. When the price rises, the system issues additional coins. If the exchange rate falls, the supply decreases. This mechanism makes the currencies flexible, but also increases risk.

Stablecoins: Ranking by Market Cap for 2024

Current currency rankings show that fiat-backed assets still dominate. The capital letter reflects popularity and user confidence. Below is a list of the top stablecoins dominating the market.

USDT (Tether)

USDT leads the way with a market capitalization of over $80 billion. Tether reliably hedges its liabilities with dollar reserves. The currency is widely used on all major exchanges and currency exchanges. Transactions are fast, fees are minimal, and support for multiple blockchains (Ethereum, Tron, Binance Smart Chain) makes USDT a universal means of payment.

USDC (USD currency)

USDC ranks second with a market capitalization of approximately $30 billion. Transparency and periodic audits characterize the currency. The Circle publisher publishes reserve reports, which increases user confidence. USDC is actively used in the DeFi sector and on trading platforms to hedge and liquidate risks.

DAI

DAI is a decentralized stablecoin with a market capitalization of $5 billion. The coin maintains its stability through cryptocurrency collateral and smart contracts. Using DAI does not require trust in a central issuer, making it popular among proponents of decentralization. DAI is widely used for lending and liquidity in the DeFi ecosystem.

BUSD (Binance USD)

BUSD has a market capitalization of approximately $3 billion. Binance’s stablecoin is pegged 1:1 to the US dollar. BUSD is used for trading on the Binance platform and other exchanges. The currency has low fees and high transaction speeds, making it a convenient trading instrument.

TUSD (Trueusd)

TUSD is one of the most popular stablecoins with a market capitalization of $2 billion. The currency is backed by the US dollar and is regularly monitored. TUSD supports fast, low-cost transactions and is available on major exchanges and brokers.

What are the differences between stablecoins and how do I choose the right one from the list?

The stablecoins mentioned above differ in terms of collateral type, transparency, and scope of application. The choice of currency depends on the intended use and trust in the issuer:

Fiat currencies like USDT and USDC offer high stability due to their USD reserves. They are suitable for storing money and making payments.
Support for cryptocurrencies brings decentralization and transparency. DAI is suitable for use in DeFi projects and smart contracts.
Algorithmic systems offer supply flexibility but are subject to the risk of instability. They are suitable for experienced users willing to take risks.

Selection criteria:

Issuer reliability: Audited companies and periodic audits.
Commissions: Comparison of transfer and exchange fees.
Availability: Listed on major stock and currency exchanges.
Scope of application: Investment, trade, international transfers.

How to use stablecoins in 2024: List of available options

Stablecoins are a universal tool for capital protection, trading, and settlement. By 2024, they will be used for asset storage, investments, and international transfers. Methods:

Capital preservation. In a high-inflation environment, you can protect your assets from loss of value by transferring money in USDT or USDC. These currencies are pegged 1:1 to the US dollar, ensuring stability and liquidity. Storing your money in a cryptocurrency wallet ensures security and quick access to your funds.
Trading and reporting. Traders use stablecoins to purchase cryptocurrencies on exchanges. USDT and BUSD serve as the base currency for spot and margin trading. When the market declines, traders convert their assets into currencies to secure profits and protect against losses.
Invest in DeFi. Stablecoins like USDC and DAI generate passive income through staking and lending on platforms like Aave and Compound. Profitability is 5% per year, and the transparency of smart contracts reduces risk.
International transfers. Currencies allow for fast and cheap transactions worldwide. USDT transfers take a few minutes and cost $1, making them more cost-effective than bank wire transfers.

Conclusion

The list of stablecoins for 2024 includes reliable and popular coins with various security mechanisms. USDT, USDC, DAI, and others bring stability and ease of use to the digital economy. Choosing the right stablecoin depends on your goals, your trust in the issuer, and your usage conditions.

April 29, 2025