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Stablecoins and Volatile Coins Defined

Collection from different coins of crypto currency, pattern from a ethereum, litecoin, bitcoin, monero, ripple, dash on dark background. Cryptocurrency and blockchain trading concept.

Cryptocurrency and instability seemingly go hand in hand, with the rapid change in prices becoming the standard for most crypto coins and tokens. However, there’s another form of cryptocurrency that’s more relaxed – the stablecoin.

This article will provide a quick run-through of these two cryptocurrency types and what makes them viable investment options.

Volatile Coins

As the name suggests, these coins are characterized by their volatile nature. This means their value may change depending on market conditions and investor movement, unlike traditional investment options like stocks or bonds. Most crypto coins in the market are considered volatile, including Bitcoin and Dogecoin.

Despite their uncertainty, volatile coins have a certain appeal to crypto investors. A key perk of investing in volatile coins is that investors can experience great profit gains when coins quickly shoot in value. Plus, some investors enjoy the thrill of seeing their investment “go to the moon.”

Conversely, there’s also the risk of these crypto investments going down the drain. One recent example of this is how one celebrity’s NFT collection which was originally bought for $2.6 million crashed in value.

Stablecoins

USD Coin or USDC digital stablecoin with crypto currency themed banner.

Compared to their volatile counterpart, stablecoins are specifically designed to be a stable and reliable form of cryptocurrency. What makes stablecoins, well, stable, is their connection to physical assets like fiat currency and real estate. It’s essentially similar to traditional investment options but uses modern blockchain technology.  

The connection of stablecoins to tangible assets makes it preferable to a portion of crypto investors. This is especially true for those new to the market or those looking for safer investments.

The ETHi token is one such example of a stablecoin. As ETHi is rooted in lease-to-own real estate in the US, investments go to purchase properties that are leased to qualified applicants. Investments are guaranteed secure, with returns coming from regular lease payments. Learn more about ETHi here.

Additionally, stablecoins allow for easier transactions within the blockchain, opening the doors for faster remittances in various currencies. This means one can quickly transfer their local currency to another location or change it into another currency with fewer fees and shorter wait times.

Along with the security and stability that stablecoins provide is the lack of increased profits. Since stablecoins rely on physical assets, there are limited means to raise their value, which could be unappealing to some crypto investors.

Which Crypto Path Should I Choose?

There’s no right or wrong move when it comes to crypto investments; it’s all dependent on what you want to achieve. If you’re looking for quicker returns and fast-paced crypto movements, then volatile coins are a great fit for you. For first-time investors wanting to try the crypto market, stablecoins like the ETHi token are a better option.

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