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Educational content, not investment advice.

Souq Dailyسوق ديليSouq Daily

Lesson 2 of 104:005 Sources

Types of crypto: Bitcoin, Ethereum, altcoins and stablecoins

Video coming soon

Presented by NourIn Arabic, with captions. Other languages are coming.

Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.

Crypto assets fall into four broad families, each with a different job and different risks.

  • Bitcoin: the first digital cash of its kind, with a fixed 21 million cap.
  • Ethereum: a public blockchain that runs smart contracts; its coin ETH pays network fees (gas).
  • Altcoins: every coin other than Bitcoin; quality ranges from widely used networks to tiny, thinly traded tokens.
  • Stablecoins such as USDT aim to hold a fixed value backed by an issuer's reserves, so you rely on trusting that issuer.
  • A low price per unit does not make a coin cheap: look at total supply and total value.

Quick check

Three questions. Pick an answer to see why.

0/3

  1. 1.What is ETH used for on the Ethereum network?

  2. 2.What is the main risk of a fiat-backed stablecoin like USDT?

  3. 3.Coin A costs $0.01 with 100 billion units. What is its total market value?

Sources

Every fact in this lesson is backed by the sources below.

  1. 1.SEC / Investor.gov – Investor Alert: Crypto Asset Securities (Mar 2023)Crypto asset investments can be exceptionally volatile and speculative
  2. 2.ethereum.org – AboutEthereum is a public network, a blockchain and an open-source protocol
  3. 3.ethereum.org – What is ether (ETH)?ETH is the native cryptocurrency of Ethereum and pays transaction fees (gas)
  4. 4.ethereum.org – StablecoinsDefinition of stablecoins; fiat-backed reserves; centralized issuer; audits needed; USDT listed as fiat-backed
  5. 5.Tether (issuer) – USD₮ token pageIssuer states USD₮ is pegged 1-to-1 and backed by Tether's reserves

Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.