Cryptocurrency is a form of digital currency created and transmitted using cryptographic methods based on blockchain technology.
Bitcoin (BTC) is the first and most widely known cryptocurrency, created in 2009. Even people with no understanding of financial markets have heard about it.
However, currently, like many other cryptocurrencies, Bitcoin still depends on regulatory bodies that require exchanges to comply with rules, such as Know Your Customer (KYC) verification or obtaining permission to trade certain products based on Bitcoin, as a prominent example – Spot Bitcoin ETF.
Altcoins are all cryptocurrencies other than Bitcoin, operating on their own blockchains. These include Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Solana (SOL), and many others. The term “altcoins” comes from “alternative coins.”
Ethereum (ETH) is also considered an altcoin, but it is not just a cryptocurrency; it is also a platform for creating smart contracts. Smart contracts automate the execution of transaction conditions, making Ethereum more flexible than just a monetary unit. Ethereum is the second-largest cryptocurrency in the world by market capitalization, after Bitcoin.
Tokens are digital assets that, unlike altcoins working on their blockchains, are created based on an existing blockchain. Tokens are used to access unique products and services, manage networks, facilitate transactions, or receive rewards. There are various types of tokens, each with its unique properties and uses.
Stablecoins are cryptocurrencies whose value is tied to stable assets, most commonly the USD (dollar). Stablecoins are designed to provide relative price stability and reduce the risks of volatility inherent in cryptocurrency markets. The most common ones are Tether (USDT) and USD Coin (USDC).