To put it simply, these are price-stabilized virtual currencies that are increasingly gaining traction in the crypto world: They are much more fixed than normal cryptocurrencies such as Bitcoin, which have massively unreliable natures. Stablecoins’ values are stabilized by pegging them to other assets such as the US Dollar or gold.
Stablecoins enjoy many benefits of being a cryptocurrency (transparency, security, privacy, etc.) without the extreme volatility of other digital coins. Examples of Stablecoins include Tether (USDT), which is backed by the US Dollar. As well as Paxos Standard (PAX) and Gemini Dollar (GUSD), which are two other US Dollar backed Stablecoins approved and regulated by the New York State Department of Financial Services.
The term “Altcoin” is an abbreviation of “Bitcoin alternative,” which means all cryptocurrencies other than Bitcoin. Many altcoins are trying to target any perceived limitations that Bitcoin has and have come up with newer versions to gain a competitive advantage. There are now hundreds of altcoins out there, some more successful than others.
The most recognizable altcoins are perhaps Ethereum, Litecoin, Dogecoin, and Ripple. However, Bitcoin still maintains overwhelming market dominance. Check out our own list of top 8 cryptocurrencies useful in real life!
These are portable devices that authenticate a person’s identity, a security token is used in addition to or in place of a password. It works through the owner plugging the security token into a system to grant access to a network service.
Security tokens come in the forms of hardware tokens that contain chips, USB tokens that plug into USB ports, wireless Bluetooth tokens, or programmable electronic key fobs which activate devices remotely. They are considered to be secure, but they have weaknesses; these include the potential for them to be lost, stolen, or hacked (although this can only happen if the owner unknowingly provides sensitive information to an unauthorized provider). Although there isn’t an exact answer, one recent estimate guesses that several million bitcoins are lost forever, due to the misplacement of security tokens.
There are three types of security tokens that are commonly known : Equity Token, Debt Token, and Real Assets Token. Equity tokens represent the value of shares issued by a company on the blockchain. Debt tokens represent debt instruments such as real estate mortgages and corporate bonds. Real asset tokens represent ownership to a certain asset such as real estate or commodities.