Types of stablecoins
Today, we’ll tell you about the three main categories of stablecoins.
▪️ Stablecoins backed by fiat currencies
These coins are backed by real-life assets, fiat money, or paper money. Two examples of this stablecoin are Tether (USDT) and USD Coin (USDC). The companies issuing these coins own large reserves to support every issued coin; however, Tether has come under intense scrutiny in the past for this specific issue.
▪️ Stablecoins backed by cryptocurrencies
Some projects are so bold that they’re willing to back their stablecoin with other cryptocurrencies (not real assets or money). For example, a crypto-backed stablecoin with a value of $1 could be supported by a crypto asset worth $2. The logic here is that if the underlying asset’s value were to drop, the stablecoin would still be able to maintain its dollar peg.
The most famous crypto-backed stablecoin is Dai (DAI).
▪️ Algorithmic stablecoins
Algorithmic stablecoins are not backed by assets or fiat currencies, which makes it difficult to understand why or how they’re stablecoins in the first place. As their name indicates, the value of these coins is controlled by computer algorithms. If the stablecoin’s value is pegged to $1 but rises above $1, the code will automatically mint and release more coins into circulation to lower the stablecoin’s value back to $1. Conversely, if the value drops below $1, the algorithm will remove—or burn—coins from circulation to lift the value back up to $1. The amount of coins you hold will change, but they’ll always reflect the value you own.
Please note: Stablecoins are not dollars—they’re cryptocurrencies. Even when dealing with stablecoins, investing in crypto carries inherent risks—case in point the collapse of Terra’s algorithmic stablecoin TerraUSD.
Today, we’ll tell you about the three main categories of stablecoins.
▪️ Stablecoins backed by fiat currencies
These coins are backed by real-life assets, fiat money, or paper money. Two examples of this stablecoin are Tether (USDT) and USD Coin (USDC). The companies issuing these coins own large reserves to support every issued coin; however, Tether has come under intense scrutiny in the past for this specific issue.
▪️ Stablecoins backed by cryptocurrencies
Some projects are so bold that they’re willing to back their stablecoin with other cryptocurrencies (not real assets or money). For example, a crypto-backed stablecoin with a value of $1 could be supported by a crypto asset worth $2. The logic here is that if the underlying asset’s value were to drop, the stablecoin would still be able to maintain its dollar peg.
The most famous crypto-backed stablecoin is Dai (DAI).
▪️ Algorithmic stablecoins
Algorithmic stablecoins are not backed by assets or fiat currencies, which makes it difficult to understand why or how they’re stablecoins in the first place. As their name indicates, the value of these coins is controlled by computer algorithms. If the stablecoin’s value is pegged to $1 but rises above $1, the code will automatically mint and release more coins into circulation to lower the stablecoin’s value back to $1. Conversely, if the value drops below $1, the algorithm will remove—or burn—coins from circulation to lift the value back up to $1. The amount of coins you hold will change, but they’ll always reflect the value you own.
Please note: Stablecoins are not dollars—they’re cryptocurrencies. Even when dealing with stablecoins, investing in crypto carries inherent risks—case in point the collapse of Terra’s algorithmic stablecoin TerraUSD.
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🌐 Beginner's Guide to Cryptocurrency
🔹 What is Cryptocurrency?
A digital or virtual currency secured by cryptography, enabling secure, peer-to-peer transactions without relying on banks.
🔹 Blockchain Basics
Cryptocurrency transactions are recorded on a blockchain, a decentralized ledger ensuring transparency and security.
🔹 Types of Blockchains
1. Public: Open to everyone (e.g., Bitcoin).
2. Private: Restricted access.
3. Hybrid: Combines public and private features.
4. Consortium: Controlled by a group of organizations.
🔹 Buying Crypto
Use trusted exchanges like Coinbase, Binance, and Gemini.
🔹 Crypto Wallets
Essential for storing crypto securely. Options include Phantom, MetaMask, and Ledger.
🔹 What is Cryptocurrency?
A digital or virtual currency secured by cryptography, enabling secure, peer-to-peer transactions without relying on banks.
🔹 Blockchain Basics
Cryptocurrency transactions are recorded on a blockchain, a decentralized ledger ensuring transparency and security.
🔹 Types of Blockchains
1. Public: Open to everyone (e.g., Bitcoin).
2. Private: Restricted access.
3. Hybrid: Combines public and private features.
4. Consortium: Controlled by a group of organizations.
🔹 Buying Crypto
Use trusted exchanges like Coinbase, Binance, and Gemini.
🔹 Crypto Wallets
Essential for storing crypto securely. Options include Phantom, MetaMask, and Ledger.
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📊 Market Overview:
BTC : $68940
ETH : $2474.85
BNB : $561.11
SOL : $163.96
⚡ Dominance :
BTC : 56.70 %
ETH : 12.38 %
Stables : 6.47 %
📈 Market Cap :
Total : 2.4T
DeFi : 66.75B
24hr Vol : 96.96B
BTC : $68940
ETH : $2474.85
BNB : $561.11
SOL : $163.96
⚡ Dominance :
BTC : 56.70 %
ETH : 12.38 %
Stables : 6.47 %
📈 Market Cap :
Total : 2.4T
DeFi : 66.75B
24hr Vol : 96.96B
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DONALD TRUMP WIN-GETTING FACTORED
BITCOIN NEAR $75K MARK-Hits Record High Level
Crypto market capitalization up 11% in last 24 hrs-Mkt Cap near $2.5tn
Risk on appetite-Called as Trump Trade
Trump endorsed digital assets during campaigning.
BITCOIN NEAR $75K MARK-Hits Record High Level
Crypto market capitalization up 11% in last 24 hrs-Mkt Cap near $2.5tn
Risk on appetite-Called as Trump Trade
Trump endorsed digital assets during campaigning.
Donald Trump’s Victory Speech Highlights:
▫️ Reducing National Debt: Trump emphasized a commitment to lowering the national debt, calling it a top priority.
▫️ Tax Reductions: He promised tax cuts aimed at reducing burdens on businesses, with the goal of spurring economic growth.
▫️ Ending Wars: Trump pledged to keep the U.S. out of prolonged conflicts and actively work towards peaceful resolutions worldwide.
▫️ Praise for Elon Musk: He acknowledged Elon Musk as a "super genius," commending his contributions to technological advancement.
▫️ Support for Cryptocurrency: Trump also expressed openness to supporting the cryptocurrency market, aiming to create favorable conditions for its growth.
▫️ Reducing National Debt: Trump emphasized a commitment to lowering the national debt, calling it a top priority.
▫️ Tax Reductions: He promised tax cuts aimed at reducing burdens on businesses, with the goal of spurring economic growth.
▫️ Ending Wars: Trump pledged to keep the U.S. out of prolonged conflicts and actively work towards peaceful resolutions worldwide.
▫️ Praise for Elon Musk: He acknowledged Elon Musk as a "super genius," commending his contributions to technological advancement.
▫️ Support for Cryptocurrency: Trump also expressed openness to supporting the cryptocurrency market, aiming to create favorable conditions for its growth.
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📊 Market Overview:
BTC : $74993
ETH : $2814.91
BNB : $187.34
SOL : $594.91
⚡ Dominance :
BTC : 56.27 %
ETH : 12.85 %
Stables : 6.00 %
📈 Market Cap :
Total : 2.64T
DeFi : 78.14B
24hr Vol : 193.08B
BTC : $74993
ETH : $2814.91
BNB : $187.34
SOL : $594.91
⚡ Dominance :
BTC : 56.27 %
ETH : 12.85 %
Stables : 6.00 %
📈 Market Cap :
Total : 2.64T
DeFi : 78.14B
24hr Vol : 193.08B
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📊 Market Overview:
BTC : $76163
ETH : $2938.1
SOL : $203.08
BNB : $598.63
📈 Market Cap :
Total : 2.7T
DeFi : 81.04B
24hr Vol : 171.44B
⚡ Sentiment :
FGI : Greed (75)
Open Interest : 46.82B
24h Liquidation : $239.4M
BTC : $76163
ETH : $2938.1
SOL : $203.08
BNB : $598.63
📈 Market Cap :
Total : 2.7T
DeFi : 81.04B
24hr Vol : 171.44B
⚡ Sentiment :
FGI : Greed (75)
Open Interest : 46.82B
24h Liquidation : $239.4M
📊 Market Overview:
BTC : $76348
ETH : $3035.74
SOL : $200.22
BNB : $623.32
📈 Market Cap :
Total : 2.72T
DeFi : 83.24B
24hr Vol : 165.64B
⚡ Sentiment :
FGI : Greed (75)
Open Interest : 46.74B
24h Liquidation : $240.0M
BTC : $76348
ETH : $3035.74
SOL : $200.22
BNB : $623.32
📈 Market Cap :
Total : 2.72T
DeFi : 83.24B
24hr Vol : 165.64B
⚡ Sentiment :
FGI : Greed (75)
Open Interest : 46.74B
24h Liquidation : $240.0M
Bitcoin hit an all-time high of $81,358, fueled by Trump’s election win, leading to $180M in short liquidations in the last 12 hours, with $67M from Bitcoin alone.
In total, $682.7M in long and short positions were liquidated across the market. BTC now dominates 59% of the crypto marketits highest in years
In total, $682.7M in long and short positions were liquidated across the market. BTC now dominates 59% of the crypto marketits highest in years
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Bulls and bears of the crypto market, what are they?
Bulls - traders profiting from the growth of price, confident that the market will go up.
Bears - traders sure that the market is falling and selling their assets.
Bull and bear markets.
The market is considered to be a bull one, if there are more buyers than sellers.
Market participants "throw" the price upwards with their purchases, like a bull throws its prey with horns.
A bear market means that sellers outnumber buyers, pushing the price down as if a bear were pinning its prey to the ground.
Bulls - traders profiting from the growth of price, confident that the market will go up.
Bears - traders sure that the market is falling and selling their assets.
Bull and bear markets.
The market is considered to be a bull one, if there are more buyers than sellers.
Market participants "throw" the price upwards with their purchases, like a bull throws its prey with horns.
A bear market means that sellers outnumber buyers, pushing the price down as if a bear were pinning its prey to the ground.