Here is your complete Guide to Altcoins

Altcoins

What are Altcoins? This question loiters in everyone’s mind when it comes to cryptocurrencies. Especially to beginners when they are just starting their journey into the crypto world. One point to Ethereum, another to ADA or Tron or some other coin, this becomes quite confusing.

This article will help you in understanding the Altcoins in Cryptocurrencies.

Altcoins are nothing but cryptocurrencies created after Bitcoin, these are alternate coins to Bitcoin, hence the name Altcoin. Any coin which is not Bitcoin is classified as Altcoin.

 

ETH, ADA, LTC, Tron, Dodge, BNB, Ripple, etc., all are altcoins, with their own Blockchain network or built on top of another blockchain. There are more than 4700+ cryptocurrencies (at the time of writing this article) registered in Coinmarketcap, with almost $2 Trillion market capitalization (at the time of writing this article).

Ethereum(ETH) focuses not only on peer to peer money transfers but also on making Ethereum Blockchain networks more of a service provided for the ability to provide DApp, smart contracts, etc., Same holds good for other cryptocurrencies like Tron, Binance Smartchain, etc.,

Though Bitcoin is not recognized as a legal tender by many countries across the globe, the underlying blockchain has given rise to building different applications and is being used by different companies across the world. For instance, Ripple is being used for Cross Border payments(Remittances) by many Banks, Stellar is being actively used by IBM.

Likewise to Bitcoin, Most of the Altcoins do use different mechanisms like Proof-of-Work, Proof-of-Stake to reward their miners who contribute to the network. For instance, Tron, ADA, Matic Network, BNB (Binance Coin), etc., support Proof-of-Stake mechanism while Ethereum is currently following POW mechanism with plans to migrate to POS by implementing Ethereum 2.0

 

Conclusion :

Altcoins are nothing but alternative coins that are created after Bitcoin, one with each different purpose. there are more than 5000+ Altcoins in the market and to be invested/traded with caution. Altcoins too use either their own blockchain or built on top of another blockchain like $CAKE on top of Binance smartchain, Uni token on top Ethereum, etc., Basis of the purpose and utility, tokens(built on the specific blockchain) are being created.

Few sites if you want to explore more :

Coinmarketcap

Coindesk

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