What is an Altcoin?
In the next article we will learn what is an altcoin? Aside from bitcoin, there are many, few thousands, of different tokens and coins with different properties.
These technologies and concepts are known as “altcoins,” or in their full term, alternatives to bitcoin; for example, EOS, XRP, Monero, Ethereum and many more.
Altcoins usually have a different purpose that Bitcoin and can be used in different ways. Some of them utilizes a different protocol or idea. This change of protocol can change the concept of that token entirely.
For example EOS that isn’t being used as a currency but as an online super computer that is able to run and execute decentralized applications, that does not rely and a 3rd party host, such as AWS (Amazon Web Service). Some has the same concept as Bitcoin but has performed a different way of distribution or a change in other properties, such as Monero which is a currency but all of the transactions are private and hidden (For privacy).
Different coins and technologies also offer different native programming languages to allow the on-boarding of experienced developers. Start trading altcoins today – open a free account.
In any case, there are numerous altcoins that don’t do anything intriguing by any means. Most by far of altcoins just change a few parameters that don’t make a difference much, or offer something that may sound valuable however isn’t.
In the event that, for instance, an altcoin has a more tokens in existence, that would only lead to a state where each coin is worth less. In the event that an altcoin generate blocks quicker, it just implies that an exchange requires more confirmations for a high security performance.
These days, most altcoins offer no advantage over Bitcoin by any means. In addition, they have less hash control anchoring them, include less developers and programmers enhancing them and are typically less helpful because of littler system impacts. And keeping in mind that numerous altcoins guarantee valuable highlights, after looking into it further a considerable lot of these promises are only that: promises and nothing more.
Altcoins so far has a smaller market cap from Bitcoin and therefor considered to be more risky as an investment due to their price extra volatility. So far no altcoin was able to keep its value vs BTC. In 2017 there were a lot of new coins that came out as ico’s and didn’t really develop anything and were considered as scams.
Of course some of the altcoin projects have shown themselves successful and worthy with excellent solutions such as 3rd party scalability solutions, smart contract deployment and development and privacy. The most important thing to do before you invest your money into any coin is to first do a full research about the developing team and technology. Be smart investors & learn how to acquire financial freedom today!