Altcoins EXPLAINED FROM SCRATCH

 What are Altcoins?


Altcoins are generally defined as all cryptocurrencies other than Bitcoin (BTC). However, some people consider altcoins to be all crytocurrencies other than Bitcoin and Ethereum (ETH) because most cryptocurrencies are forked from one of the two. Some altcoins use different consensus mechanisms to validate transactions and open new blocks, or attempt to distinguish themselves from Bitcoin and Ethereum by providing new or additional capabilities or purposes.

Ether is another altcoin. However, it did not fork from Bitcoin. It was designed by Vitalik Buterin, Dr. Gavin Wood, and a few others to support Ethereum, the world’s largest blockchain-based scalable virtual machine. Ether (ETH) is used to pay network participants for the transaction validation work their machines do.

Types of Altcoins

Altcoins come in various flavors and categories:

Stablecoins

Payment Token

Governance Tokens

Meme Coins

Utility Tokens

Security Tokens


Pros and Cons of Altcoins

Pros

Improve upon another cryptocurrency's weaknesses

Higher survivability

Thousands to choose from

Cons

Lower popularity and smaller market cap

Less liquid than Bitcoin

Difficult to determine use cases

Many altcoins are scams or lost developer and community interest

What Are the Top 3 Altcoins?

By market cpacity, the top three altcoins are Ethereum, USD Coin, Tether (USDT).

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