Investing or Saving: What’s the Smartest Strategy for Your Money?

Not all cryptocurrencies are highly volatile. The volatility of a cryptocurrency refers to how much its value fluctuates in the market and can be measured using indices such as the Bitcoin Volatility Index (BVIX). Some cryptocurrencies, such as Bitcoin, have experienced large fluctuations in value and are known to be highly volatile. Other cryptocurrencies, such as Ethereum, have also experienced significant fluctuations in value, but have generally been less volatile than Bitcoin.

Stablecoins are a type of cryptocurrency that is designed to have a stable value and minimize volatility. Stablecoins are typically backed by a valuable asset, such as the U.S. dollar, and are created with the goal of providing users with a digital currency option that has a more stable value than traditional cryptocurrencies. Examples of popular stablecoins include Tether, USDC and Paxos.