Altcoins (Altcoins, alternative cryptocurrencies) – what is it in simple words

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The modern financial and economic sphere knows many cryptocurrencies in addition to bitcoin. They are actively used to fulfill a variety of ideas, fulfill the necessary needs and make money. Such alternative crypto money has a generic name – altcoins.

What is the idea behind these digital coins? What features are inherent in altcoins and how did they come about? Are there negative and positive qualities of alternative cryptocurrencies? The principle of investing in altcoins and the prospects for making money. All these questions, as well as some other thematic nuances, will be discussed in detail in this article.

Altcoin stories

The famous Japanese S. Nakamoto, who revolutionized the modern economy, introduced the bitcoin cryptocurrency to the world community in 2008. This is not an innovative development and not the first virtual currency, however, the emergence of bitcoin has become considered the starting point for a successful era of cryptographic money. It was the BTC coin that caused the growth of popularity, and later the demand for virtual currencies, of which, by the way, there are already more than 1,550 varieties.

S. Nakamoto initially positioned bitcoin as an alternative to fiat money. A lot of users became interested in such a well-advertised idea, since the cost of crypto coins and their circulation was not controlled by anyone, was not monitored, was not regulated. The price of the coins did not reflect the current state of the most important sectors of any country.

For bitcoin on the crypto market, its analogues began to actively appear, which are collectively called alcoins or altcoins. Competent investment in these digital coins has already enriched many people, and skillful operations on cryptocurrency exchanges or online exchanges continue to increase users’ capital today.

Briefly about what cryptocurrency is

Digital coins are a specific type of currency that does not have a physical embodiment. That is, there are no banknotes or metal coins ethereum, bitcoin, tether, ripple and their counterparts. Cryptocurrency is a code, a digital record, placed on the blockchain. Through encryption and encryption, it is well protected from attacks by malicious hackers, scammers and other intruders. Also, this key nuance contributes to the implementation of confidential transactions and conversions. For some cryptocurrencies, for example, monero, smartcash, blackoin and dash, due to the use of sophisticated, modern technologies, it is impossible to trace payment transactions.

Important! Most of the existing options for cryptographic money have a unique encryption code that provides the highest degree of protection for transactions or conversions!

Altcoins – what are they? What features do they have?

The term “altcoin” itself, according to the accepted classification, denotes any cryptocurrency that appeared after bitcoin. That is, 99.999% of all modern crypto coins are altcoins. Their number increases every month.

At its core, all altcoins present on the crypto market have principles that are fully or partially similar to those involved in bitcoin. However, the rules of their functioning are completely different. This is their most important distinguishing quality. Despite the similarity of the source code, each crypto-coin is characterized by some unusual parameters or properties obtained due to small or major changes in the blockchain. Chain length, block size, branches and other clever modifications add a new feature to the altcoin.

Of course, the majority of digital currencies contain a partially changed bitcoin code, but there are crypto-money with an almost innovative, unique encoding. These are, so to speak, a new generation of altcoins (EOS, cardano, IOTA, Ethereum, Ripple, etc.), a blockchain that is more advanced and optimized for the conditions of the modern market.

An important feature of altcoins is the low, if compared with bitcoin, the cost of coins. Accordingly, they are less popular.

Nuance! Many altcoins are currently undervalued, although they are very promising. Crypto investors need to be able to find and recognize such projects in a timely manner, since they are extremely profitable for medium-term or long-term investments!

Another curious feature of altcoins is the simplicity of their creation. Even the day after tomorrow or tomorrow, anyone will be able to create their own alternative cryptocurrency. Specialized scripts and hashing algorithms will help with this.

It is incredibly profitable and interesting to make investments in altcoins. In part, this process resembles trading in securities. The meaning is simple:

✅  The investor correctly identifies a promising, developing cryptographic project;

✅  Acquires a certain amount of coins.

✅  He puts them in his investment crypto portfolio.

✅  Waiting for the rise in price of coins.

✅  Realizes with profit a part of its own crypto capital.

✅  He is looking for other potentially profitable investment vehicles.

This scheme is renewed again as new digital money is constantly emerging.

A warning! Investing in cryptocurrencies is extremely risky. Often, inexperienced investors incorrectly analyze the cryptocurrency market and do not study the altcoin deeply. As a result, the chosen cryptocurrency does not rise in price, and its depreciation leads to losses. Approximately 87-93% of altcoins are unpromising in terms of investment!

Altcoin price

Altcoin course online. Presented: price, issue, capitalization of the top and most liquid coins: Ethereum, Ripple, Bitcoin Cash, Ethereum Classic, EOS, Stellar, Litecoin, Cardano, Monero, Iota.

Cryptocurrencies

Name Price Market Cap Supply Change % (7D) Performance
Bitcoin BTC
Ethereum ETH
Litecoin LTC
DigitalCash DASH
Monero XMR
Nxt NXT
Ethereum Classic ETC
Dogecoin DOGE
ZCash ZEC
Bitshares BTS

For your information: The rate of most altcoins by the fall of 2018 fell by 80-90% to the maximum price value that was observed in late 2017 – early 2018.

Where to buy altcoins

You can buy altcoins in the following ways:

When buying an altcoin on the exchange, wallets are provided for storing them. If you buy in an exchanger, then the address of the wallet to receive should already be. It’s easy to create a cryptocurrency wallet and get an address. Where is the best place to buy? To find out, you need to conduct a detailed analysis of commissions for deposit and withdrawal, other conditions (verification, liquidity, reliability, exchange rate and other factors).

The main advantages of altcoins

Virtual currencies have undeniable positive qualities that distinguish them from fiat money.

Some pluses are specific to alcoins, but most of them are common to all cryptocurrencies:

✅  New features, corrected shortcomings, more advanced features compared to the leader of the bitcoin crypto market. Developer-enhanced source code.

✅  Ease of use in payment transactions.

✅  High liquidity.

✅  Instant conversions and transactions.

✅  Growing scalability and increasing popularity.

✅  The ability to get coins through mining.

✅  Decentralization and anonymity.

✅  Round-the-clock access to crypto-coins from anywhere on Earth, where there is a stable Internet connection.

The obvious disadvantages of altcoins

Altcoins, being a means of payment, are characterized by a number of specific disadvantages. The following negative qualities deserve special attention among their minuses:

✅  the absolute dependence of the cost of alcoins in the cryptocurrency market on the current demand. Like other financial instruments, digital money can react extremely sharply to news. A decrease in quotations or an increase in the value of cryptocoins is easily formed even by indirect events. News related to any virtual currency can instantly reverse the trend for correlated crypto assets.

✅  the possibility of loss of investor confidence. Today, there is a great deal of trust in altcoins among investors from different countries. Because of this, there is an increase in cryptocurrency quotes, however, this situation is very fragile. If depositors doubt a financial instrument, then its rapid depreciation may begin. Such a scenario will significantly reduce the capital of many investors, especially beginners who do not correctly analyze the cryptocurrency market.

✅  dangers for coin holders. Each owner of the encryption code is a coin holder. Because of this, there is a dangerous likelihood of loss of savings due to the malicious actions of fraudsters. Even the loss of a key to a cryptocurrency wallet will no longer allow the funds in it to be returned.

The noted disadvantages are the main disadvantages of altcoins. It is necessary to take them into account in a timely manner before purchasing any type of digital money.

Altcoin Prospects

The overwhelming majority of altcoins present on the crypto market are justifiably considered promising. While they are not able to compete with bitcoin in terms of demand, popularity and cost, however, this situation may soon change.

The difficulty of mining BTC coins is steadily increasing due to the constant increase in the blockchain of this virtual currency. Miners are forced to repurpose their computing power to mine lighter altcoins. Let them be cheaper, but for a certain time period it is possible to mine a sufficient number of coins and get a good profit.

The most famous and popular altcoins now are: ethereum, EOS, bicoin cash (bitcoin fork) and ripple. These cryptocurrencies are trying to actively compete with bitcoin. So far, the lag is significant, but each innovation integrated into their system gradually reduces this distance. Against the background of the current fall in the price of the leader of the cryptocurrency market, everyone expects a change in the “leader” of the generalized rating of cryptocurrencies.

Adding perspective to altcoins is their relatively moderate cost. This aspect turns these assets into a profitable investment vehicle. Because of this, the attractiveness of altcoins increases, especially when a competent analysis of coins is carried out. For a short time period, you can significantly increase your own savings.

Conclusion

An interesting question related to altcoins was analyzed in great detail. Now it is necessary to summarize the information. So:

✅  Alternative cryptocurrencies are definitely a positive phenomenon. First of all, they level the chances of different investors in making money. Such coins form a competitive environment in the cryptocurrency market, which potentiates the development, improvement and popularization of digital money.

✅  Each altcoin, in order to prevent “dissolution” in today’s mass of electronic currencies, is endowed by developers with some useful or unique qualities. The possibilities of cryptographic coins are expanding, the accessibility of the blockchain is simplified.

✅  Complete anonymity of the transfer of information and transactions carried out. It is almost impossible in the current environment to track conversions or transfers of cryptocurrencies.

✅  There is no central regulatory and management body. Digital coin users are completely independent in this regard.

This is all reality. The emergence of alternative cryptocurrencies has contributed to the birth and strengthening of this situation. Many promising opportunities for investing, doing business and using altcoins as a means of payment have been revealed.

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