Hello everyone, surely everyone knows what Bitcoin is, right? So do you know what Altcoin is and how is it different from bitcoin?

If not, let’s find out together with Blogtienao!

What are Altcoins?

Altcoin is a combination of two words “Alt” and “coin”. Where Alt stands for Alternative means replacement, and coin is coin. That is, this is an alternative currency.

Viewing: What is Altcoin

So what does it replace? It is an alternative to Bitcoin.

Altcoin is also understood as a common name for cryptocurrencies other than Bitcoin.

What is the reason for Altcoins appearing

?Although Bitcoin is the first cryptocurrency and holds the number one position in the market. But it still has a lot of limitations.

For example, TPS (Transaction per seconds) is understood as Bitcoin’s transaction speed per second which is still very slow compared to current payment tools.

Currently, Bitcoin is only capable of processing ~4 transactions/second. And international payment tools like VISA handle 4000 transactions/sec and expand to 65000 transactions/sec.

Not to mention that Bitcoin mining takes a lot of energy.

That is why altcoins were born. It was born to improve the disadvantages of Bitcoin.

How many altcoins

?There are thousands of coins on the cryptocurrency market. As of the time of this writing, there are 5540 coins listed on Coinmarketcap.

However, there are many coins out there that we still don’t know about.

First altcoins

The first altcoins that appeared were Litecoin, Namecoin, Peercoin, Dogecoin.

Most of these coins mostly use Bitcoin code and have a little technical change so that transactions can be transferred faster, cheaper fees, …

Is there any altcoin that can replace Bitcoin

?“Yes” but only in theory. But actually, there is no coin that can replace Bitcoin.

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Although Altcoins are said to be the replacements for Bitcoin, so far no coin has been able to surpass the “king of cryptocurrencies”.

There are coin projects that are just “drawing cakes”, besides there are projects that are always developing every day.

So in the future, maybe there will be a coin that can replace Bitcoin. Just like how Nokia was replaced by Iphone, Samsung.

Should I invest in Altcoins

?The end of 2017 and the beginning of 2018 is considered a good time for altcoin investors. Because right now altcoins rallied all at once x10 x20.

Some people get rich overnight.

The community calls this altcoin season “altcoin season”. That is, the dominance of Bitcoin (Bitcoin Dominance) decreases to make room for alternative coins.

It is now 2020, also almost 3 years since the altcoin season took place. The crypto market has experienced a massive drop these coins are now still down 80%-90% since the peak.

At the time of writing Bitcoin Dominance is around 65%, if again this number drops to 30-35% then a new Altcoin season begins.

But nothing is certain for the altcoin season and the price will be x10 x20 as before.

So investing in altcoins is also risky. The decision whether to invest or not is up to you.

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In addition to investing in Bitcoin alternative coins you can also make a profit from trading coins.

The risks when investing in altcoin

?Investing must come with risks, right? I will present some basic risks for everyone to grasp!

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The first risk is getting involved in multi-level scam virtual currencies. For example, the once legendary Bitcoinnect from zero, the price increased to more than 400 USD.

Bitcoinnect’s market capitalization at that time exceeded 2 billion USD. But in the end, it’s also zero, even if no one wants to take it.

The second risk is wearing very strong price fluctuations. Although these projects are not scam or multi-level model.

But because the cryptocurrency market is very small compared to other markets. So it’s understandable that prices are manipulated.

For example, the MATIC coin dropped more than 280% in just 2 days. You can refer to the price chart below.

Should buy Altcoins because it’s much cheaper than Bitcoin

?When first entering the market, some people are only interested in the price of the coin and the quantity purchased.

People often think: “This coin is much cheaper than Bitcoin. With the money I have, I can buy a lot of coins. Waiting for it to go up is more profitable than buying bitcoin.”

But that was a fatal mistake. Since the price is determined by supply and demand, even though altcoins are very cheap, if no one buys them, they will fall.

Not to mention there are coins with a total supply of up to 1 billion coins while Bitcoin has only 21 million coins, so the price difference is obvious.

Like limited items, it costs more than mass goods. So you can’t just buy it if it’s cheap.

Where to buy and sell altcoins

?Currently, there are many cryptocurrency exchanges where you can buy and sell altcoins.

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But it is not easy to find an exchange that supports many coins, reputation, and low transaction fees. I will introduce some popular ones that people use to buy and sell altcoins

These are the 3 exchanges that I feel the best when trading.

Where to store altcoins

?The altcoins that you use to trade can be stored directly on the exchange.

For those who invest in long-term altcoins, they should find a cryptocurrency storage wallet to store it safely.

Popular wallets and multi-coin support for you to store:

Altcoin Market Cap

Since 2009, when Bitcoin coin was born and became the first decentralized digital virtual currency, Altcoins also appeared one after another. Since then, the term “Market capitalization” has become more and more popular in the money market, referring to the total USD value of the existing and circulating supply of Cryptocurrency.

Altcoins are also traded, exchanged on exchanges just like Bitcoin. They all have varying support and the value of Altcoins is often compared to a certain amount of Bitcoin at any given time. To view and update the price of Alt coins you can see here.

Conclusion

Hopefully with the article “What is Altcoin? Why did Altcoins appear? will bring useful information to readers.

If you have any questions about Altcoins and other coins, please leave them in the comments section below. We will try to reply to you as soon as possible.

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Please visit the Virtual Currency Blog regularly to update the latest news and knowledge about virtual currency.