Alt is understood as an alternative form, Coin means money. Altcoin means an alternative to money.
What is Altcoin?
Altcoin is a combination of two words Alt and Coin. In this case, Alt is understood as an alternative form, Coin means money. When combined, Altcoins are meant to be alternative forms of money. The alternative currency is the digital currency Bitcoin.
Simply put, Altcoins are digital currencies born after Bitcoin. Most Altcoins are encrypted from Bitcoin. Each type of Altcoin will be handled and used for different purposes. They were born later, but developed based on the idea of the technology of Bitcoin and improved on some features.
There are two reasons that Altcoins were created:
- Bitcoin’s biggest downside is its high transaction fees. So many founders want to create Altcoins to change this.
- The strong development potential of digital money is also the reason that Altcoins appear. Altcoins were created to exploit profits from this potential market, and many Altcoin projects were born.
Information you should know about Altcoins
Altcoins started appearing in mid-2010 and so far there are more than 5,000 different types of altcoins.
The number of Altcoins is high, but it still cannot beat Bitcoin in terms of capitalization in the cryptocurrency market. According to Coinmarketcap, the capitalization of all Altcoins accounts for only about 34% of the crypto market, the remaining 66% still belongs to Bitcoin.
In the last 2-3 years, the trend of money flow of veteran investors in the cryptocurrency market is gradually shifting to Altcoins. Therefore, making Altcoins have stronger price volatility than Bitcoin many times.
Find out more: All The Things You Need To Know About Bitcoin
Five things to note about Altcoins
1. First Altcoin: Namecoin was launched in April 2011. However, the Namecoin coin is not widely circulated and has mostly stopped moving in recent years.
2. Every day, hundreds of new Altcoins are ICO on the cryptocurrency market.
3. Altcoins are just another version of Bitcoin but improved in a certain way.
4. Many crypto players consider the emergence of Altcoins unnecessary because they cannot compete with the current popularity of Bitcoin.
5. For early crypto market investors, the current Altcoins market is a place for short-term speculation with high profitability but also high risk.
Join X1k.co Telegram to keep track of news and comment on this article: t.me/x1kcrypto
Disclaimer: This article is for informational purposes only, not investment advice. Investor should research carefully before making decision. We are not responsible for your investment decision