• Category
  • >Cryptocurrency

What is Altcoin and How is it Different from Bitcoin?

  • Yamini
  • Feb 06, 2022
What is Altcoin and How is it Different from Bitcoin? title banner

Upon its launch and subsequent milestones, Bitcoin caused a furore while making people puzzled and curious. Ever since, terms like cryptocurrency, digital currency have dominated the internet. People are adjusting to the digital transformation while changing the way we used to look at investments and assets in the earlier decades. 

 

Bitcoin and the subsequent response to it led the way for a wide range of cryptocurrencies. These came to be known as altcoins. Etymologically, ‘Alt’ means ‘alternative’ and ‘coin’ denotes ‘cryptocurrencies’.

 

 

What are Altcoins?

 

To tell a long story short, all cryptocurrencies apart from Bitcoin are known as altcoins. They were developed in a similar blockchain structure in order to follow a peer-to-peer system. 

 

Altcoins require a specific mining method so that users can carry out safe and secure web transactions.  The price-tracking website CoinMarketCap says that the total number of cryptocurrencies amounts to over 16,900 types as of 19 January 2022. 

 

Bitcoin and Ethereum account for around 60 per cent of the crypto market, while the remaining is taken up by altcoins.

 

There is a multitude of altcoins in the market. According to Investopedia, some of the most popular altcoins include Ethereum (ETH), Litecoin (LTC), Stellar (XRM), Cardano (ADA), Polkadot (DOT), Bitcoin Cash (BCH) and Dogecoin (DOGE). (Must read: Dogecoin vs Bitcoin)

 

From the Viewpoint of Investors, Altcoins are consistently trying to make themselves independent of the Bitcoin structure. This will eventually help them to have a value that would not be influenced by the fluctuating Bitcoin rates.

 

Its value is touching the sky more due to its growing popularity in the non-fungible token (NFT) market. As a matter of fact, Ethereum has a market capitalization of over USD 345 billion on Jan 21, 2022.

 

Different Types of Altcoins

 

Several types of altcoins can be witnessed in the market nowadays. Altcoins can be classified on the basis of their functionalities and consensus mechanisms. 

 

Different categories exist such as mining-based, pre-mined, meme coins, utility tokens, security tokens and stable coins.

 

  1. Stable coins

 

Stablecoins are the altcoins that have the most reduced volatility. This is achieved by pegging their values to a more real-world asset or fiat currencies or precious metals, which helps redeem users and holders when the currency falls. 

 

Tether (USDT), MakerDAO’s DAI, and the USD Coin (USDC) feature as some of the most popular altcoins in this category. (Source)

 

  1. Security tokens

 

These are somewhat similar to a digital liquid contract, which shows a part of a larger asset or business, much like regular financial security. They are of great help in recording crypto transactions and their price prospect is what draws investors.

 

  1. Meme coins 

 

These are those cryptocurrencies that gain prominence only for a short time on the internet. This happens generally due to some celebrity or famous personality dealing in cryptocurrencies commenting about it.

 

For instance, we all have seen Elon Musk sharing cryptic tweets about Dogecoin and the subsequent momentary rise in prices. 

 

  1. Utility tokens 

 

These cryptocurrencies help by providing services within a network. Buying NFTs, trading, minting, redeeming awards, paying network fees and other services within a blockchain setup is made possible due to the utility tokens. 

 

A widely popular example can be Ethereum which can perform these functions. Solana and Binance Coin featured among the largest altcoins in terms of market capitalization as of November 2021.

 

As per a note by Arcane Research, "Bitcoin’s performance has been dwarfed by the incredible altcoin growth this year. 2021 has felt like a continuous alt season, only taking a breather during the summer months. This season has seen several short-lasting bull runs in various parts of the markets as traders have rotated through the narratives,”. 

 

As of now, this has become quite evident that altcoins have improved functionality, transaction, and scaling to meet the rapidly expanding demand.

 

The market for altcoins is expanding more than ever before, and this rapid growth makes many people wonder if the original cryptocurrency's lead will end with any of the coins that came after it.

 

Difference between Bitcoin and Altcoins

 

According to NDTV, Bitcoins and altcoins are similar to an extent as they work on the same mechanism, these both differ from each other in many significant ways.

 

The implementation and use of Bitcoin are quite difficult as proof-of-work, the mechanism that is used to create the crypto blocks consumes a lot of energy and time. Along with this, Bitcoin’s smart contract capabilities are very limiting.

 

But, altcoins have gone beyond this by using the proof-of-stake mechanism in order to gain a competitive advantage. This makes the process less energy exhaustive and reduces the time required for validating any transaction. 

 

If we look at the scenario from the perspectives of sustainability and scalability, altcoins have smoothly addressed these points of criticism against Bitcoin.

 

Ether (ETH) is used as gas, or payment for transaction costs, in smart contracts on the Ethereum blockchain. Ethereal 2.0 is already getting massive attention amid anticipation as they create a separate identity for themselves. (Reference)

 

 

Ending Note 

 

As per Investopedia, altcoins also aspire to become the next-gen Bitcoin by becoming an inexpensive method for digital transactions.

 

While ending the blog we can conclude that due to the emergence of a matured form of blockchain technology, on which cryptocurrency is based, a large variety of new crypto coins have arrived on the scene. Altcoins were built on the success of Bitcoin by slightly modifying the mechanism to appeal to specific users. 

 

For instance, Ethereum, the second-largest cryptocurrency in terms of market capitalization, introduced the idea of “smart contracts”. These are nothing but basic codes that run only when predetermined conditions are met. 

 

They help in executing agreements between two parties using blockchain technology, which leads to paving the way for new possibilities in the development of new applications for crypto. Altcoins have distinguished themselves from Bitcoin by working on additional capabilities, such as smart contracts or low price volatility.

 

(Also check: 4 Types of Blockchain Networks)

Latest Comments

  • claraglover26a902db76dedf4ad2

    Oct 26, 2024

    Book Now Crypto Recovery Expert - iBolt Cyber Hacker If you're in need of a skilled and reliable crypto recovery expert, iBolt Cyber Hacker is highly recommended. With an impressive background in cybersecurity and crypto forensics, iBolt has earned a reputation for assisting clients in recovering lost or stolen cryptocurrency in an effective and secure manner. Their recovery service spans multiple areas, including crypto wallet recovery, blockchain tracing, and cyber investigation, making them a top choice for anyone facing issues with crypto asset recovery. They are very active in their technical work and also make sure to communicate clearly and keep clients updated throughout the recovery process. Whether you've lost access to your wallet, fallen victim to a scam, or need assistance with tracking stolen funds, iBolt Cyber Hacker has the skills and tools necessary to offer solutions. trustworthy option to consider. Email: Support @ iboltcyberhack. co m Cont/Whtp +39, 350..929, 0318 Website: https :// iboltcyberhack. co m/

  • anelieseklienf7bbd5185d9e42bf

    Oct 28, 2024

    I recently lost over $321k of my life savings as a victim of the CATLY scam. I fell into a deep despair and was scared to inform anyone. All of this happened so quickly that I was in shock. I did some research and chose to get in touch with WIZARD JAMES RECOVERY, who answered all of my enquiries and promised to do everything in his power to get my money back, which he did. My USDT was returned to my wallet a few days later. I am so grateful to this brilliance, and I strongly advise anyone in need of assistance to get in touch with them right away. Remember to convey to Wizard James that Aneliese recommended you, and you can count on their dependable and first-rate service. Contact details: Email: wizardjamesrecovery@ usa . com Whatsapp: +.44. 7418. 367204. Webpage: h t t p s : / / www . wizardjamesrecovery . com

  • annblair8882d7499daad564c26

    Oct 30, 2024

    I am open to sharing my experience with Bitcoin investment and losing money to scammers. However, yes it is possible to recover your stolen bitcoins. I never believed in Bitcoin recovery because I was made to understand that it was not possible. However, sometime in October, I fell for a forex scam that promised overly high returns and lost close to $55,000. I searched for a month for help until I finally came across an article on Reddit in regards to recovering stolen cryptocurrency so I reached out to them (brigadiatechremikeable(@)proton.me)OR Telegram +1(323) 9 1 0 1 6 0 5 I was so scared and skeptical because I have heard of bad experiences. Still, I decided to give him a try and to my greatest surprise, I got all my stolen bitcoins recovered from the scammers within a very short time frame. And they were able to introduce me to the best and legit BTC investment I am so happy to keep getting my daily BTC, all I do is keep 0.1 BTC in my mining wallet with the help of Brigadia Tech. They connected me to his mining stream and I earn 0.4 btc daily with this, my daily profit. I can get myself a new house and car. I can’t believe I have thousands of dollars in my bank account. Now you can get in.

  • annblair8882d7499daad564c26

    Oct 30, 2024

    I am open to sharing my experience with Bitcoin investment and losing money to scammers. However, yes it is possible to recover your stolen bitcoins. I never believed in Bitcoin recovery because I was made to understand that it was not possible. However, sometime in October, I fell for a forex scam that promised overly high returns and lost close to $55,000. I searched for a month for help until I finally came across an article on Reddit in regards to recovering stolen cryptocurrency so I reached out to them (brigadiatechremikeable(@)proton.me)OR Telegram +1(323) 9 1 0 1 6 0 5 I was so scared and skeptical because I have heard of bad experiences. Still, I decided to give him a try and to my greatest surprise, I got all my stolen bitcoins recovered from the scammers within a very short time frame. And they were able to introduce me to the best and legit BTC investment I am so happy to keep getting my daily BTC, all I do is keep 0.1 BTC in my mining wallet with the help of Brigadia Tech. They connected me to his mining stream and I earn 0.4 btc daily with this, my daily profit. I can get myself a new house and car. I can’t believe I have thousands of dollars in my bank account. Now you can get in.

  • annblair8882d7499daad564c26

    Oct 30, 2024

    I am open to sharing my experience with Bitcoin investment and losing money to scammers. However, yes it is possible to recover your stolen bitcoins. I never believed in Bitcoin recovery because I was made to understand that it was not possible. However, sometime in October, I fell for a forex scam that promised overly high returns and lost close to $55,000. I searched for a month for help until I finally came across an article on Reddit in regards to recovering stolen cryptocurrency so I reached out to them (brigadiatechremikeable(@)proton.me)OR Telegram +1(323) 9 1 0 1 6 0 5 I was so scared and skeptical because I have heard of bad experiences. Still, I decided to give him a try and to my greatest surprise, I got all my stolen bitcoins recovered from the scammers within a very short time frame. And they were able to introduce me to the best and legit BTC investment I am so happy to keep getting my daily BTC, all I do is keep 0.1 BTC in my mining wallet with the help of Brigadia Tech. They connected me to his mining stream and I earn 0.4 btc daily with this, my daily profit. I can get myself a new house and car. I can’t believe I have thousands of dollars in my bank account. Now you can get in.

  • jacobclaasen1359e3767546a54f5c

    Oct 30, 2024

    Not everyone has heard of Wizard James Recovery, I'm sure. I'm delighted that my internet study led me to this wonderful RECOVERY SPECIALIST. I was contacted by a scammer on Discord who attempted to trick me into joining a binary options investment scheme, which I was hesitant to do. After exchanging contact information, the scammer obtained my email address and took all of my coins, which were worth roughly $71,000. I was devastated because I thought I was cautious enough, but you can never be too careful with these rippers. I immediately took action after conducting some independent research and reading glowing testimonials about Wizard James, a superb and incredibly efficient recovery agent; his contact information is (wizardjamesrecovery@ usa .com/Whatsapp: + 44 (7418) 367 204). After I contacted James, I gave him the bare minimum of details and specifications, and he immediately got to work recovering what I had lost in a week of hacking and investigation services. I am ecstatic about this wonderful favour, and I vowed to spread the word about this wonderful man named James. If you want to recover any digital currency that you have lost to cryptocurrency scammers, make sure to get in touch with Wizard James using the information above.

  • beberberthery32181dfd2ad5af49e2

    Oct 30, 2024

    iBolt Cyber Hacker recovered $3 million Bitcoin from 2018 wallet I recently came across the incredible work done by iBolt Cyber in recovering $3 million worth of Bitcoin from a 2018 wallet, an impressive recovery in the world of digital crypto recovery. cryptocurrency recovery process can be extremely complex, The fact that iBolt Cyber was able to unlock a wallet from 2018 speaks volumes about their advanced skills. They set a high standard for crypto recovery services by retrieving $3 million in Bitcoin from a wallet dating back to 2018, a rare and commendable achievement. I wholeheartedly recommend iBolt Cyber for anyone facing the task of recovering cryptocurrency. This is a team that truly knows what they’re doing. Email: Support @ iboltcyberhack. co m Cont/Whtp +39, 350..929, 0318 Website: www . iboltcyberhack. co m/

  • lenimuller93a82a4f02e6224990

    Nov 02, 2024

    I felt overpowered and unsure on how to get back my stolen assets after losing $243,230 worth of Bitcoin and Ethereum to an investment fraud. Fortunately, I came across WIZARD JAMES RECOVERY, and their outstanding assistance changed everything in this dire circumstance. Unmatched professionalism and openness were displayed by WIZARD JAMES RECOVERY. Their team of highly qualified web developers and cybersecurity specialists carefully examined the scam's specifics and created a plan of action for my situation. In addition to being meticulous, their strategy demonstrated their deep comprehension of the intricate nature of bitcoin theft.It was especially remarkable how quickly WIZARD JAMES RECOVERY moved. Their prompt recovery efforts were crucial in getting my money back that had been stolen and easing my anxiety and worry. It was quite impressive and demonstrated their proficiency in the sector that they were able to recover so much cryptocurrency so quickly.WIZARD JAMES RECOVERY did more than just get my money back. They also made an effort to find the fraudsters who were behind the theft. Their proficiency in cyber investigations and digital forensics was essential in locating and apprehending the offenders. In addition to helping me financially, this extra assistance also advanced the cause of justice more broadly. Excellent communication was kept by WIZARD JAMES RECOVERY. By giving me frequent updates and concise justifications for their actions, they fostered trust and made sure I was always aware of the advancements being achieved. The experience was far less stressful than I had expected because of their openness and commitment.I would recommend WIZARD JAMES RECOVERY to anyone looking for professional help reclaiming cash or cryptocurrency that has been stolen. They stand out in the field of cybersecurity due to their professionalism, effectiveness, and transparency. I had an extremely excellent experience with them, and I am very grateful for their assistance and knowledge in getting my stolen valuables back. Without a doubt, WIZARD JAMES RECOVERY is a team you can trust to expertly and devotedly handle the challenges of cryptocurrency recovery. WIZARD JAMES RECOVERY can be reached by email at wizardjamesrecovery @usa. com. Message: +44 7418 367204 on WhatsApp

  • liselotteabel8b3b33a9a120425c

    Nov 09, 2024

    I'm writing this review to sincerely thank Wizard James Recovery Services for their exceptional work in assisting me in getting my lost Bitcoin investment back. I lost $250,000 in cryptocurrencies as a result of falling victim to an online hoax, which was a severe emotional and financial blow. Fortunately, when looking through my options online, I found Wizard James Recovery Services. I made the decision to get in touch, and after our initial conversation, I knew I was in good hands. In addition to being competent, the staff at Wizard James Recovery Services was sympathetic and recognized the pain I was experiencing. They guided me through every stage of the procedure, outlining their plans and the actions they would take to get my money back. I valued their openness and commitment, which increased my confidence in the healing process. I was astounded by how hard the staff worked to find my investment in such a short amount of time. I was informed on a regular basis, and I could see they were dedicated to their goal. I was shocked to learn that James had successfully retrieved my $250,000 Bitcoin investment from the swindle artist! The relief and joy I experienced upon getting my money back are beyond words. Wizard James Recovery In addition to helping me recover my financial loss, gave me hope that justice would be served in the face of deceit. Throughout the entire process, their professionalism, knowledge, and sincere concern for their clients were clear to see. Contact them today via email: wizardjamesrecovery@usa.com

  • kochg3182a81d4facdb34c70

    Nov 12, 2024

    I go by Gisela. Here's my recommendation: I strongly recommend Wizard James Recovery Company to anyone who has fallen victim to a scam and is searching for ways to get their lost assets or Bitcoin wallets back. This licensed cryptocurrency recovery specialist assists victims in getting their lost cryptocurrency back and offers secure methods to keep their wallets safe from online scammers. Before Wizard James Recovery Company was able to retrieve the 11.9BTC that was in my Binance wallet, I must admit that I was completely hopeless and drowning in depression. Anyone who has lost cryptocurrency should speak with an expert about their situation so that their money might be retrieved. To learn more, send an email to: wizardjamesrecovery@ usa.com Whatsapp: +44 7418 367204