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Hi everyone, everyone knows What is Bitcoin is that right? So you already know what Altcoin is and what is it different from bitcoin?
If not, let’s find out with CHK!
What is Altcoin?
Altcoin is a combination of two words “Alt” and “coin”. In which Alt stands for Alternative means to replace, also coin is a coin. That is an alternative currency.
So what does it replace? That is the replacement for Bitcoin.
Altcoin is also understood to be a common name for cryptocurrencies other than Bitcoin.
What is the reason Altcoin appeared?
Although Bitcoin is the first cryptocurrency and holds the number one position in the market. But it is still very limited.
For example, TPS (Transaction per seconds) is understood that the transaction speed per second of Bitcoin is still very slow compared to current payment tools.
Currently, Bitcoin is only capable of processing ~ 4 transactions per second. And international payment tools like VISA handle 4000 transactions / second and expand to 65000 transactions / second.
Not to mention Bitcoin mining takes a lot of energy.
That is why altcoins were born. It was born to improve the downsides of Bitcoin.
How many altcoins are there?
There are thousands of coins in the cryptocurrency market. As of the time of this writing, 5540 coins have been listed on Coinmarketcap.
However, there are many coins out there that we are still not aware of.
The first altcoins
The first altcoins to appear are Litecoin, Namecoin, Peercoin, Dogecoin.
Most of these coins are mostly using Bitcoin code and have a bit of technical changes so that transactions can be transferred faster, fees are cheaper, …
Is there any altcoin that can replace Bitcoin yet?
“Yes” but only in theory. Actually, at present, there is no coin that can replace Bitcoin.
Although Altcoins are considered to be the replacement coins for Bitcoin, so far there is no coin that can surpass the “king of cryptocurrencies”.
There are coin projects that are just “drawing cakes”, besides there are also projects that always develop every day.
So in the future, maybe there will be coin that can replace Bitcoin. Just like how Nokia was replaced by Iphone, Samsung.
Should invest in Altcoin?
At the end of 2017, early 2018 is considered the time to pick fruit for altcoin investors. Because right now all altcoins are up x10 x20 massively.
Some people get rich overnight.
The community calls this the altcoin season “altcoin season”. That is Bitcoin dominance (Bitcoin Dominance) reduction to make room for alternative currencies.
It is 2020, almost 3 years since the altcoin season. The crypto market has experienced a sharp drop these coins are now still down 80% -90% since their peak.
At the time of writing Bitcoin Dominance is about 65%, if again this number drops to 30-35%, the Altcoin season begins.
But nothing is certain yet altcoin season and the price will be x10 x20 as before.
So investing in altcoin is also risky. The decision whether to invest or not is up to you.
In addition to investing in Bitcoin alternatives, you can also make money trading coins.
The risks when investing in altcoin?
Investment must come with risks, right. I will present some basic risks for everyone to grasp!
The first risk is getting involved in multi-level scam virtual currencies. For example, the once legendary Bitcoinnect increased from zero to more than 400 USD.
Bitcoinnect market capitalization at that time exceeded $ 2 billion. But the end is also about 0, no one will bother.
The second risk is very strong price volatility. Although these projects are not a scam or multi-level model.
But because the cryptocurrency market is very small compared to other markets. So it is very understandable that the price is manipulated.
Such as work co-matic dropped more than 280% in just 2 days. You can refer to the price chart below.
Should buy Altcoin because it is much cheaper than Bitcoin?
When they first enter the market, some people only care about the price of the coin and the amount purchased.
People think: “This coin is much cheaper than Bitcoin. With the money you have, you can buy a lot of dong. Waiting for it to go up is more profitable than buying bitcoin ”.
But that is a fatal mistake. Because the price is determined by supply and demand, even though the altcoin is very cheap if no one buys it, it will also drop.
Not to mention there are coins with a total supply of up to 1 billion coins while Bitcoin has only 21 million coins, so the price difference is obvious.
Like limited items (rare, limited items), it has a higher price than mass goods. So it’s not like you just feel cheap to buy it.
Where to buy and sell altcoin?
Currently there are many cryptocurrency exchanges where you can buy and sell altcoins.
But to find an exchange that supports a lot of coin, prestige, and cheap transaction fees is not easy.
I will introduce some popular that people use to buy and sell altcoin
These are the 3 exchanges that I feel best when trading.
Where to store altcoin?
The altcoins that you use to trade can be stored directly on the exchange.
As for those who invest in altcoin long-term, you should find a wallet to store cryptocurrencies for safekeeping.
Popular types of wallets and support multiple coins so you can store:
Market capitalization of Altcoin
Since 2009, when the Bitcoin coin was born and became the first decentralized digital currency, Altcoins also appeared. Since then, the term “market capitalization” is becoming more and more popular in the money market, talking about the total USD value of the existing and circulating cryptocurrency supply.
Altcoins are also traded, exchanged on the exchanges like Bitcoin. All of them have different supports and the value of altcoins is often compared to a certain amount of Bitcoin at some point in time. To see and update the prices of Alt coin types you can see here.
Hopefully with the article “What is Altcoin? What is the reason Altcoin appeared?“Will bring useful information for readers.
If you have any questions about Altcoins as well as other types of Coin, please leave the comments below. We will try to reply you as soon as possible.
Please visit Virtual currency blog Regularly update the latest news and knowledge about virtual money.
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