What are Altcoins?
Altcoins are cryptocurrencies other than Bitcoins. They also, like other cryptocurrencies, use blockchain technology to allow peer-to-peer transactions.
Although several posts around Altcoin news might lead you to believe they are similar to Bitcoins, it is not the case. A detailed Altcoin analysis reveals several reasons why they differ from Bitcoins. For example, Altcoins use an independent consensus mechanism to validate transactions and produce blocks. Secondly, unlike Bitcoins, they provide benefits like smart contracts and low-price volatility. Last but not least, Altcoin prices are far lower compared to Bitcoins, which in other words, makes them more affordable to buy.
Types of Altcoins
Although there is not much information available, a detailed Altcoin analysis classifies Altcoins into the following four types:
- Mining-based Altcoins
- Security Tokens
- Utility Tokens
Benefits of Using Altcoins
Several Altcoin news articles and Altcoin analysis reports have helped bring forth the benefits associated with Altcoins. They include:
- Altcoins are designed to help plug the gaps that exist within the Bitcoin framework.
- Altcoins offer investors an opportunity to choose from a wide array of cryptocurrencies other than Bitcoins, with each one of them performing different functions.
- Using altcoins as a means of payment attracts comparatively low transaction charges.
Although Altcoin prices are a bit volatile because they are a relatively new concept, they hold tremendous growth potential for the future.
For more such interesting Altcoin news, Altcoin analysis, and information around Altcoin prices, please stay tuned in.