Cryptocurrencies are becoming an important part of the global economy, but it can take a lot of work to keep track of all the different coins. In this article, we will see what an altcoin is and how it differs from Bitcoin, which remains the most well-known cryptocurrency.
Altcoin is an established term in cryptocurrency and shorthand for an alternative coin
If you’ve looked into cryptocurrency, you may have heard the term altcoin before. Altcoin is a term used to refer to any cryptocurrency that is not Bitcoin. It is short for alternative coin and was coined in 2011 by the user “SmokeTooMuchon the Bitcointalk forum.
Thousands of altcoins are on the market, yet almost 99% are or will quickly become worthless. Evaluate your options carefully before making any financial commitments. Altcoins can quickly destroy a carefully constructed portfolio.
Altcoin is not Bitcoin, and vice versa
Altcoin is used to refer to any cryptocurrency that is not Bitcoin. So, an altcoin is shorthand for an alternative coin. Many altcoins exist and more are created daily.
Altcoin refers to any cryptocurrency that is not specifically Bitcoin. However, it can also be used in other contexts where you don’t want your listener or reader to think only of Bitcoin or Ethereum.
Altcoins can have their own blockchains, or share them with other cryptocurrencies, depending on the coin
The blockchain is a decentralized and distributed database. That’s what makes it so unique. No person or organization owns or controls it; there is no single point of failure. If one machine was shut down, the whole network would continue to work just fine.
But how does it work? How can you store data on computers distributed around the world? The answer lies in cryptography and public key infrastructure (PKI).
Blockchain uses digital signatures to verify transactions. These signatures are created using public-private key pairs (also known as “wallet addresses”) that do not require names or other identifying information. It allows users complete anonymity while allowing them some control over their assets by having access to them through their private key. This key is a password to access funds residing in a crypto wallet.
Bitcoin remains dominant, but many other cryptocurrencies exist and more are created daily
Bitcoin remains the most well-known cryptocurrency and has, by far, the largest market capitalization. It is also the most widely used cryptocurrency and will maintain this lead for decades. Its network moves the most value of all cryptocurrencies, confirming that altcoins have little momentum in the payment space.
Some people claim that there will be an altcoin that can overtake Bitcoin. So far, thousands of such claims have been made and proven false. Bitcoin has a first-mover advantage that no alternative coin can ever match. It is also the most secure and reliable blockchain of all.
Altcoins make up a large portion of the cryptocurrency market. Although Bitcoin is perhaps the best known, it is only one of many currencies.
Altcoins have helped expand the reach of digital currency and make it more accessible to everyday users around the world. Even so, caution is still in order when investing in an altcoin.
CryptoMode produces high quality content for cryptocurrency companies. To date, we’ve provided brand visibility for dozens of companies, and you can be one of them. All our customers appreciate our value for money ratio. Contact us if you have any questions: [email protected]
None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses incurred while acting on the information provided on this website by its authors or customers. No advice should be taken at face value, always do your research before making financial commitments.