{"id":10255,"date":"2022-08-09T18:00:48","date_gmt":"2022-08-09T21:00:48","guid":{"rendered":"https:\/\/eragoncred.com\/?p=10255"},"modified":"2022-08-08T16:59:20","modified_gmt":"2022-08-08T19:59:20","slug":"what-are-altcoins-definition","status":"publish","type":"post","link":"https:\/\/eragoncred.com\/br_eu\/what-are-altcoins-definition\/","title":{"rendered":"What are altcoins? Definition"},"content":{"rendered":"
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What are altcoins? Definition<\/figcaption><\/figure>\n

Bitcoin ushered in the cryptocurrency era in 2009 and quickly became the name people talk about digital currencies. In fact, it has dominated the booming scene so much that every other cryptocurrency is considered an \u201caltcoin,\u201d an alternative to Bitcoin. The name lives on, even though the original digital currency has thousands of competitors today.<\/p>\n

Here are the altcoin basics to watch this year and whether or not altcoins will overtake Bitcoin.<\/p>\n

What are altcoins?<\/h2>\n

Altcoins are alternative cryptocurrencies to Bitcoin, which was once the only cryptocurrency itself. In the early days, Bitcoin dominated the space so much that every other competitor was defined as the original cryptocurrency. It’s Bitcoin – and everything else. So things that aren\u2019t Bitcoin are somewhat mockingly called altcoins, or perhaps even less kindly sh*tcoins, in the rhythm of the original digital currency.<\/p>\n

So an altcoin is any cryptocurrency that is not Bitcoin. This definition made a lot of sense in the early days of cryptocurrencies, as Bitcoin garnered most of the market’s attention and competitors invented dozens, if not hundreds, of alternative coins. Today, some experts estimate the number of individual cryptocurrencies to exceed 19,000. Therefore, defining the crypto space as “Bitcoin and everything else” makes less sense than ever.<\/p>\n

However, according to CoinMarketCap.com, Bitcoin remains the largest cryptocurrency, with a market cap \u2014 the value of the total number of coins in existence \u2014 more than double that of the second-largest player, Ethereum. The size of the other players decreases rapidly from there.<\/p>\n

Types of Altcoins<\/h2>\n

With thousands of cryptocurrencies to choose from, speculators looking for altcoins are spoiled. However, so many trade clusters revolve around the largest players and those with some of the best technical specifications, such as B. Fast trading times.<\/p>\n

Mining based coins<\/h3>\n

Mining-based coins circulate through a network of computers, solving complex mathematical problems that often require a lot of energy. The world’s largest cryptocurrency – Bitcoin – is a mining-based coin, but so are many altcoins.<\/p>\n

Stablecoin<\/h3>\n

A stablecoin is a cryptocurrency whose value is pegged to the value of another asset, usually the U.S. dollar. Stablecoins track the underlying asset and attempt to maintain the price of the coin relative to the currency. Typically, stablecoins are backed by assets such as real dollars (though usually bonds and other assets) that provide the stablecoins with their real-world monetary base. Examples of stablecoins are Tether and USD Coin.<\/p>\n

Despite their moniker, stablecoins are sometimes unstable. TerraUSD, a dollar-pegged stablecoin, made headlines in May 2022 when it fell to a few cents per dollar. The coin\u2019s automatic stabilizer was unable to keep up with orders from traders who wished to sell their positions.<\/p>\n

Security token<\/h3>\n

A security token is a token that represents a partial interest in another asset. For example, a piece of art might have a security token that divides the ownership of that asset and verifies its ownership. Alternatively, a company can represent its ownership through a security token. Thus, this type of token could enable more traditional securitization of assets.<\/p>\n

Meme coins<\/h3>\n

Memecoins are a cryptocurrency that has drawn public attention, possibly through social media or tweets from celebrities like Tesla CEO Elon Musk. Memecoins often have a lottery-like side, with prices rising quickly and then falling sharply. Popular memecoins are Dogecoin and Shiba Inu.<\/p>\n

Popular altcoins<\/h2>\n

Here are the top 10 cryptocurrencies as of August 5, according to CoinMarketCap:<\/p>\n

    \n
  1. Bitcoin<\/li>\n
  2. Ethereum<\/li>\n
  3. Tether<\/li>\n
  4. USD Coin<\/li>\n
  5. Binance Coin<\/li>\n
  6. XRP<\/li>\n
  7. Binance USD<\/li>\n
  8. Cardano<\/li>\n
  9. Solana<\/li>\n
  10. Polkadot<\/li>\n<\/ol>\n

    Of course, these rankings can fluctuate, often with a lot of volatility, as new coins are mined for each currency and the price of the currency rises or falls. Below are more details on the top cryptocurrencies by size.<\/p>\n

    What to Consider Before Buying Altcoins<\/h2>\n

    If there’s anything riskier than investing in the best cryptocurrencies, it’s buying relatively unknown altcoins. Here are a few things to consider before jumping into altcoins and hoping for lottery-like payouts:<\/p>\n