The Investing Expert cautions that this particular coin is one of the most hazardous forms of cryptocurrency and provides important information that you should be aware of.

During this month, there has been a surge in both meme stocks, such as GameStop, and meme coins.

The value of Dogecoin, a well-known electronic currency inspired by the “doge” shiba inu meme, has risen by approximately 14% in the past month, according to CoinMarketCap. Meanwhile, the value of Pepe, a currency based on the “Pepe the frog” meme, has surged by more than 100% since April 29, as reported by CoinMarketCap.

However, before you contemplate putting money into cryptocurrency, it is essential to grasp the distinction among meme coins, altcoins, and bitcoin.

Bitcoin

According to CoinMarketCap, Bitcoin is the first and most valuable cryptocurrency with a market capitalization of over $1.3 trillion. It was developed by an individual or group known as Satoshi Nakamoto, though their true identity is unknown. The purpose of Bitcoin was to provide a decentralized form of currency that did not require government or financial institution involvement for transactions.

Bitcoin, like numerous other cryptocurrencies, runs on the blockchain system, functioning as a digital, decentralized record that logs all transactions occurring within the network.

Bitcoin also has a built-in limited supply of 21 million coins. This means no new bitcoins will be issued after 21 million coins have been mined. The scarcity is on purpose; the supply limit ensures that bitcoin remains a scarce asset so that, theoretically, as demand increases and supply remains the same, bitcoin’s value increases as well.

Altcoins

Altcoins, also known as alternative coins, refers to any cryptocurrency that’s not bitcoin. Although some of these digital tokens may operate similarly to bitcoin, they are built on different blockchain networks.

There are thousands of altcoins, which are typically created with a specific purpose in mind. Take stablecoins, for example. A stablecoin is a type of altcoin that pegs its value to another asset, such as gold or the U.S. dollar, with the goal of stabilizing its price.

Aside from stablecoins, several alternative coins gain their worth from market demand and the choices of traders. This puts them at a higher risk for sudden and unforeseen fluctuations in value.

Meme coins

Under the umbrella of altcoins are meme coins. These virtual tokens are usually created for fun and named after internet memes or pop culture references. And although every