What are they?
1. Altcoins:
- Altcoins are "alternative currencies" to Bitcoin (BTC). They emerged after Bitcoin and were created to improve or expand its features.
- Unlike Bitcoin which has its own blockchain, altcoins also have their own unique blockchains.
- Examples of altcoins include Ethereum (ETH), Ripple (XRP) and Litecoin (LTC).
2. Stablecoins:
- Stablecoins are designed to maintain a stable value compared to other volatile cryptocurrencies.
- Their main objective is to provide stability and they are linked to assets such as fiat currencies (for example, USD, EUR) or commodities (such as gold).
- Examples of stablecoins are USDT (Tether), USDC (USD Coin) and DAI.
3. Tokens:
- Tokens are digital assets that operate on the blockchain of another cryptocurrency (usually Ethereum).
- They are created using smart contracts and can represent anything, such as physical assets, voting rights, or even access to specific services.
- Tokens do not have their own blockchain; instead, they use the infrastructure of an existing cryptocurrency.
4. Memecoins:
- Memecoins are a humorous category of cryptocurrencies inspired by memes or viral trends.
- They often have no real value and are created as a joke or to generate interest on social media.
- Examples of memecoins include Dogecoin (DOGE) and Shiba Inu (SHIB).
Remember that these terms may vary depending on context and interpretation, but this guide will help you better understand the basic differences.