Why should you learn more about Altcoins?
Any cryptocurrency that is not Bitcoin (BTUSD) is known as an Altcoin. If you are new to the crypto-world, then you must understand that Altcoins are similar to the way Bitcoin works, but they are also different in many ways. Not all Altcoins are identical as they provide different functions and capabilities through their own versions of smart contracts and varying stability in price.
If you want to invest in cryptocurrencies, then you should know more about Altcoins. Today, there are more than 14,000 Cryptocurrencies in the market. All offer different values and different functionality.
EVOL Coin is one of the ERC-20 cryptocurrencies that offer speedy transactions and more liquidity. So, you can invest in them and hold till the price increases.
Altcoins follow similar price volatility as Bitcoin. Their prices also rise and fall according to the other altcoins.
Altcoins – Basic Understanding
“Altcoin'' is made up of two words, "Alternative" and "Coin". The function of Altcoins is to follow a peer-to-peer system, and they share a code. They are capable of processing a lot of data and transactions simultaneously. Some Altcoins try to solve the problems that Bitcoin is facing and deliver better and inexpensive solutions.
Creating a block is a lengthy and energy-consuming process. Some of the things offered by Bitcoin are also limited, like an intelligent contract. So, Altcoins exist to provide a better, more stable and secure solution limited by Bitcoin. PoS (Proof-of-Stake) is one method Altcoins uses to create blocks by reducing time and overall energy consumption. It also validates new transactions faster.
Ethereum is also used for gas payments (transactions) in smart contracts by some altcoins including EVOL on Ethereum Blockchain. Almost all altcoins try to solve the major problems like the Sustainability and Scalability of traditional cryptocurrencies. EVOL Network offers EVOL Coins with an Off-chain wallet and On-chain wallet for the security of EVOL Coins. You can buy EVOL in USD, AUD and INR. You can also buy EVOL using the Ethereum cryptocurrency.
Unlike the first cryptocurrency, altcoins have successfully made their place in the crypto market. Altcoins have attracted investors who anticipate better profits as the Altcoins start to get more attention because of their unique features.
The investors also enjoy the lower price and great potential in altcoins.
Types of Altcoins
Altcoins have different varieties, functionalities and mechanisms. Altcoins fall into many categories.
- Security Tokens:
Security Tokens are similar to the securities and stock traded in the traditional stock market. Just like conventional stocks, Security Tokens provide dividends and a form of ownership to their holders. The investors invest in Security Tokens for the benefits like more liquidity and ownership.
- Utility Tokens:
Utility Tokens are helpful in their network for various transactions like buying services, getting rewards, paying network fees. Utility Tokens do not provide dividends or ownership.
- Meme Coins:
Inspired by a joke, they are the type of cryptocurrency that intend to mimic the famous cryptocurrency. Meme coins gain popularity in a short time, and they most likely become famous by enthusiasts and influencers in the crypto-world.
Meme coins have higher price volatility. They gain profit based on complete speculation.
As the name suggests, since their launch, Stablecoins has aimed to reduce the volatility by pegging their price to the real-world currency, i.e., fiat currency. They also peg their value on valuable metals and other cryptocurrencies and a similar basket of goods as a reserve.
- Mining based:
These types of cryptocurrencies are based on mining because they come into existence through the mining process. The process of solving complex math problems is called mining and creating blocks. Most of the time, these types of coins are intended for ICOs (Initial Coin Offerings). Before listing, they are distributed before being produced by algorithms.
Is it worth investing in Altcoins?
Altcoins roughly cater to about 40% of the total cryptocurrency market; the numbers and popularity of altcoins have been drastically increasing with time. Most of the altcoins aim to gain favour with short-term profit and liquidity. The price of altcoins also varies with respect to other cryptocurrencies in the market.
The cryptocurrency market is still growing. A lot has changed in the crypto world, but that is not enough to establish cryptocurrency as a mainstream payment. But soon, the crypto market will position itself as one of the best payment methods that give power to the people.
The altcoin has been in discussions about its potential future among experts and concerned citizens. What holds cryptocurrency from becoming a legal currency is the fear of ruling out fiat currencies. But they both can co-exist, and both can work simultaneously.
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