If you think that in the cryptocurrency realm, bitcoin is the only show, you are wrong! There are many other similar currencies that excel in technology. While some of the currencies are similar in principle, others follow their own trading pattern. And the term altcoin is one of them!

Altcoin is the alternatives to the bitcoin; in simple terms, it refers to any other cryptocurrency,  which is not bitcoin.

What Is Altcoin?

Altcoins are electronic cryptocurrencies that have their own blockchain, miners, and wallets. In other words, they are the alternatives of the original Bitcoin, which make investing in altcoin the best thing. The improvements can be mining method, Hashing, transaction speed, distribution and more.

What Was The First Altcoin?

In 2011, Namecoin came in light and was called as the first altcoin. While it was also designed to function like other cryptocurrencies, the prime objective of Namecoin was to assist the decentralization of online currencies.

Why Do Altcoins Exist?

There are thousands of altcoin, and all exist because they are a great alternative to Bitcoin. Although bitcoin is a revolution, there are many areas like cheaper and faster transaction, an optimized approach for mining, better and improved privacy features and more in the currency that needs improvement. These are the reasons why Altcoin come in light; Altcoin not only address the limitations of the bitcoin but also offer different functionality from the Bitcoin.

Further, the limitations in the Bitcoin were not only the sole reason for the existence of the Altcoin, instead, there are many other reasons. Since altcoins are legit, there are Samcoins and pump and dump coins that only exist to make developers rich by scamming other people. These coins start from the low and gain traction after the invention of lure investors. After the value of these coins gets pumped, it either makes the coin to disappears or make it drop drastically, making huge losses to the investors.

Why Should You Invest In Altcoins?

Bitcoin is the most popular and valuable currency in the crypto market. However, that doesn’t make it the best investment. There are many other alternatives or altcoins that are rising in popularity for their growth in the value. Further, apart from the immense growth popularities, altcoins have other alternatives which include fast transaction, better technology, less competition and more.

Bitcoin, for instance, is considered as one of the most popular and real cryptocurrencies that are used to purchase goods and other services because of their faster network transaction that Bitcoin. However, investing in bitcoin or any other currency is a no safe bet that even experts suggest that you shouldn’t invest more than you can’t afford to lose.

How Does Altcoin Differ From The Bitcoins?

Of course, you can’t compare bitcoin to every cryptocurrency or altcoin; you can compare them on three aspects viz. price, popularity and technical details. The price of altcoin is similar but opposite to the price of bitcoin. The cycles of altcoin often overlap, which means the price of Altcoin varies according to the price of Bitcoin.

As for the technical differences, they are quite a lot of changes when it comes to the hashing algorithm, privacy, forking mechanism, etc.

Is Altcoin Mining Safe?

Of course, it is possible to purchase a large quality of cryptocurrencies, but depending on the volatile nature of these cryptocurrencies, trading in this could lead to great loses. However, mining on the other side is safe, and long-term investment with many big opportunities. Let’s say you want to invest over $100,000 of altcoin, this you can invest in the high-quality capital crypto mining equipment, which will help in generating revenue. Further, in the coin market, if the mining equipment is maintained, you can easily resell it with a value, which is close to the market price.

So, instead of investing fixed coins and depending on its prices to increase for profits, mining units generate more total coins. This also means that even if the price decreases, you will get large amounts of cryptocurrencies in your portfolio.

Even if the cryptocurrency is the future of online trading, every single aspect of data will be stored in a block chain!

Published by Janice Cook