In the news, especially on the slot of financial news, you can’t help but hear at least something about cryptocurrency. If you can pay attention to financial news, stock markets, and also look into technological advancements, cryptocurrency is the banger topic in action. Millions of people, especially the young generation, are into cryptocurrency transacting, remitting, and investing.
When cryptocurrency was being created, the motive behind this was to facilitate payments for easier trading. Cryptocurrency transactions need no third-party authority but rather a system of computers called nodes. What this implies is that any form of transactions initiated takes place directly between the sender and the recipient.
It is all about digital currencies flying all over the world within a specified system of networks. Crypto has become mainstream and various persons and merchants have naturally accepted it. In order to participate in cryptocurrency trading you would definitely need crypto coins. A number are already in existence which includes either Bitcoin or the Altcoins.
Here is where we draw the line between bitcoins and altcoins
Someone with a genuine interest in growing in the cryptocurrency ecosystem can’t sit pretty and satisfied with the profits made. It’s a great asset to just try and learn the small differences between the common terms in the field that often end up being used as if they mean similar things. So here is the clear cut between bitcoins and altcoins.
Numerous cryptocurrency offerings have been created and circulating all through the digital trading platforms. However, the most common cryptocurrency that is an absolute eye catcher is the famous Bitcoin. Introduced in 2009, bitcoin has risen and experienced a tremendous growth in its value. Of course there have been seasons of plummeting but then the currency often bounces back like a phoenix in the ashes.
Bitcoin is simply defined as a digital currency pegged upon a decentralised peer-to-peer network system under the control of crypto users. By being decentralised, it clearly means that there is no third-party involvement in any of its operations or transactions. All transactions are made public within the Bitcoin network to limit the problem of double spending.
The main brains behind the creation of Bitcoin aimed at providing a solution to issues arising from double spending. Ever since its creation, its value keeps growing every fortnight, no wonder it’s closely relatable to the value of gold. The dollar value average of Bitcoin has continuously risen to $21,626.9 with a corresponding rise in the market capitalization.
Such an expression is something you would rarely miss when cryptocurrency is being discussed or mentioned. I know a number familiar with the crypto realm have often come across this term “altcoin”. However, for any newcomer, finding your way out through the jungle of complex terms in crypto, can be hectic.
For this reason, this guide will give you a straight and clear insight on what is meant by Altcoins. In cryptocurrency, an Altcoin basically means an alternative coin other than Bitcoin. Yes, there are numerous well-established cryptocurrencies aside from Bitcoin.
While Bitcoin remains to be the standard coin in cryptocurrency, Altcoins therefore refers to the other alternatives in place of Bitcoin. In simpler terms, you could just take it that Altcoins are any other form of cryptocurrency that is not Bitcoin.
As a matter of fact, there is a possibility that an Altcoin could have numerous characteristics similar to Bitcoin’s. But significant characteristics equally set them apart. However, many Altcoins operate on a different technology when it comes to transactions and many other things.
The Real Picture of Events: Altcoins vs Bitcoins
Ever since the creation of Bitcoin, it stormed people’s consciousness and everyone has been talking about it. However, many brains have endlessly tried to imitate its success but to no avail. Actually, this could be one of the reasons why Altcoins simply known as the “alternative coins” came into existence.
While Bitcoin has continued to rise higher and higher in terms of its dollar value average, Altcoin has been exploring ways to challenge Bitcoin market dominance. A good example is Ethereum which has been fronting the NFT marketplace and is the major currency for buying NFTs.
The difference between the two is somewhat very easy to understand. Bitcoin was the very first cryptocurrency to be created whereas Altcoin represents all the alternative currencies that came after. The term Altcoin is merely an umbrella where all the Bitcoin competitors settle while Bitcoin is Bitcoin.
Regardless of what both cryptos are designed for, all cryptocurrencies have value and can be used as a means of exchange. The only issue that most merchants are facing currently, is associated with the criteria of accepting crypto. Besides, some merchants are still challenged with the steps they can take to aid their reception of payment with digital coins.
Additionally, on the aspect of safety, both the Altcoins and Bitcoins are safe due to the presence of a company offering backup. For as long as you are making use of a reputable cryptocurrency payment network when transacting, the safety of your coins is guaranteed.
Even as many still intend to carry on with their investments in cryptocurrencies to make fortunes, one must however not make the following differences.
- While Bitcoin is the oldest cryptocurrency introduced in the year 2009, the first altcoins came into the picture in 2011. Besides, new Altcoins continue to be released on a regular basis.
- With the exception of stablecoins, other forms of Altcoins tend to offer a higher risk and also reward in cryptocurrency investment. Though investing in Bitcoin is equally risky, investing in altcoin may pose bigger risks.
- Despite the volatility of Bitcoin, it remains to be the market leader with a stable and increasingly higher value. Bitcoin leads while the other follow
- Altcoins presents a higher room and possibility of growth, but also prone to high chances of failure.
- Since Altcoins came after Bitcoins, it simply means they are more advanced. A lot of advancements and ideas have been put in place when creating them.
- Considering transaction speed and cost, most Altcoins are far much superior to Bitcoin.
- Bitcoin is regarded as the pioneer with a crucial foundation that all the other cryptocurrencies are built upon.
- Altcoins are the competitors that take on the shape of the major currency that is Bitcoin.