Bitcoin needs no introduction. It’s the OG of cryptocurrencies, the one that started it all. But the crypto world didn’t stop there-thousands of new digital currencies have emerged since, each bringing something different to the table. Enter altcoins and stablecoins. 

Let’s break down what they are and why they matter.
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Altcoins: Bitcoin’s many competitors

Altcoins (short for “alternative coins”) are any cryptocurrencies that aren’t Bitcoin. The first altcoin appeared in 2011, and since then, developers have been tweaking and innovating to create coins that are faster, cheaper, and more energy-efficient. Some altcoins run on Bitcoin’s blockchain, while others, like Ethereum, have their own unique networks designed for different purposes-think smart contracts and decentralised apps.
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Can you trade Altcoins on Deriv?

Absolutely! Many traders love altcoins for their volatility-big price swings mean big opportunities. But with great opportunity comes great risk. That’s why, on Deriv, you don’t need to buy or own altcoins to trade them. Whether you’re trading CFDs or using multipliers, you’re simply predicting price movements. If your prediction is right, you profit-without the hassle of wallets or private keys.

Of course, risk is still part of the game. A good trading strategy, risk management tools like stop loss, and solid technical analysis can help keep you on the safer side.
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Stablecoins: The steady side of crypto

Not all cryptocurrencies are rollercoasters. Stablecoins are designed to be just that-stable. Their value is pegged to something less volatile, like the US dollar or gold, usually at a 1:1 ratio. This means they’re less prone to wild price swings and are often used for transactions within the crypto world.

But don’t be fooled into thinking stablecoins are completely risk-free. The infamous Terra crash in 2022 proved that even “stable” assets can lose value in a flash. So, while they may be steadier than Bitcoin or Ethereum, they still come with their own set of risks.
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Can you trade stablecoins on Deriv?

Yes, you can! Just like with altcoins, Deriv lets you trade stablecoins without actually owning them. Since stablecoins move less dramatically than other cryptos, they’re not as popular for day trading. But even minor price fluctuations can be worth it if you’re trading large volumes or prefer lower volatility. Plus, you can open a crypto account with stablecoins, making them a useful option for trading other markets too.

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