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The Difference Between Stablecoins and Cryptocurrencies With a High Volatility Rate

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Cryptocurrencies are starting to dominate the world. Research shows that there may be as many as 2,000 digital assets in the world as they have become very easy to create. Additionally, they are powered by the blockchain technology which allows them to be highly decentralized and self-sustainable. In other words, banks and governments cannot control them.

Basically, there are two types of cryptocurrencies – stablecoins and highly volatile cryptocurrencies. We wanted to take a closer look into both types and explain everything you need to know about them. Even though both types are cryptocurrencies, they have a few differences between them. First, let’s see where can you purchase them.

Where Can You Purchase and Trade With These Cryptocurrencies?

When it comes to trading/purchasing with both types of cryptocurrencies, the best option and more or less, the only option, is to register at a trading site. These platforms will connect you with thousands of other traders from every part of the world. 

Before you can use their services, you will need to register and verify your account. These processes are very fast and simple. After you’ve completed them, you will be asked to choose a payment method that you will use to purchase crypto. 

One of the world’s most reputable trading sites is Bitcoin Prime. Not only does this platform support numerous cryptocurrencies, but it is very secure and profitable. Additionally, it is powered by the latest HTML5 technology, hence it’s optimized for mobile and desktop use. You can trade at any time and place. 

Now, let’s see what is the difference between these two types of cryptocurrencies. 


As the name of the type itself suggests, stablecoins are cryptocurrencies whose value is tied to an outside asset. These outside assets can be the likes of gold or the US dollar and the main purpose of why they operate like this is because it maintains their stability. 

In most cases, stablecoins are able to deal with the high volatility rate by being tied to FIAT currencies. There are three types of collaterals that are used as a backing for stablecoins. The first is FIAT, which me mentioned above, the second one is precious metals (such as gold or silver), and the third is cryptocurrencies. 

The most popular stablecoins are Diem, Tether, USD Coin, and Dai. Out of all these, Tether is the most commonly used stablecoin. Its value is tied to the US dollar and 1 Tether is worth $1. Research showed that stablecoins were worth around $12 billion in 2020. 

Stablecoins come with an array of benefits such as transparency, lower fees, and faster speed. They also have numerous uses and are borderless. 

High Volatility Cryptocurrencies

Next up, highly volatile cryptocurrencies are the perfect choice for those that want to make a profit. The most popular highly volatile cryptocurrency on the market is Bitcoin. The difference between these cryptocurrencies and stablecoins is the fact that the likes of Bitcoin are subjects to various changes in their price. 

Since we mentioned Bitcoin, we’ll use it as an example. Bitcoin’s price changes with each passing day. It can go up or it can go down. After the Tesla investment back in February, Bitcoin jumped from $47,000 to over $50,000 in just a few days. 2 months later, Bitcoin reached a peak value of over $63,000, but since then, it has dropped and now, it fluctuates between $30,000 and $40,000. 

Highly volatile cryptocurrencies are most commonly used to trade and make a profit. Research shows that thanks to Bitcoin trading, as many as 100,000 people in the world have become millionaires.