Black belt is the highest. Though traditional Okinawa karate uses a red and white belt to indicate 7th and 8th degree black belt and solid red for 9th and 10th. Many American schools use the red belt as a kyu level below black belt.
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It depends on how you look at it. White belt is generally considered the lowest belt and at the other extreme is black. Depending on the art, there are often many levels of black belt.
Typically in the Okinawa arts the highest level belt, 10th Dan, is represented with a red belt.
the belts are there like a grade to show how much experience you have got and knowledge of karate, like passing an exam, and to show lower belts that you have to be respected
It will depend entirely on your style of karate and the school. In my style a red and white belt indicates 8th and 9th degree Black Belt. A 10th degree is solid red.