What are altcoins?

The name of Altcoins comes from the combination between ” alternative” and “coin ” which is currency in English. All of these are born just after Bitcoin, which was the pioneer cryptocurrency within this cryptocurrency market in the world. That is why today, all of them have become an alternative to the main P2P payment network that is Bitcoin. 

Currently, in addition to Bitcoin, there are more than 17 thousand alternative digital currencies that seek to achieve large capitalization within the market. These appear in 2011 as a first generation that was formed under the same engine of blockchain technology or chain of blocks . Currently, Bitcoin represents more than 40% of the market, while altcoins the rest. 

Within this article we will give you all the basic information that is related to these alternate digital currencies . However, you can expand everything through our basic cryptocurrency course called MegaAcademy and thus learn more about cryptocurrencies . Undoubtedly an opportunity for all those who want to better understand these new technological tools .

What do altcoins offer? 

Now that we know what Aaltcoins are , it is time to learn about the advantages they can offer to users or platforms that use them. So take note if you want to better understand what each of them can offer. 

  • More innovation

All these alternative models are based on what started in 2009 with the launch of Bitcoin . From this, all these new models have been created that have different solutions to the problems that exist today. On the other hand, it also allows for new uses for blockchain technology and BTC technology. 

  • The decentralized seek to improve

The mission of some of these alternative currencies is that there is no central system with the data and processes. What you want is for this to be something much more interactive in which you can help the network. However, it is necessary to know that not all altcoins are decentralized.

  • Greater utility

What these coins are looking for is to provide more solutions for users and different industries. In this way, each of the processes that can be optimized through technology will be made much simpler. That is why today there is the development of different projects that seek to improve the different markets .

  • fully transparent

 With the use of blockchain technology, the aim is to eliminate the opacity of the data, so that anyone can audit this information. In this way the blocks will be impossible to alter, so the data will always be correct. 

How are altcoins obtained?

The most common way to get altcoins is through online purchase. There are more than 350 exchanges in the world that allow the purchase and sale of this type of currency. Among the best known Exchanges we can find Coinbase, Bittrex and Binance , with different exchange models.

The price of each of these will depend on the supply and demand that exists. 

It is also necessary to have a digital wallet, either on the mobile or inside a computer to be able to store them. It is important to note that the wallets do not accept any type of altcoin , so this should be noted beforehand. 

After you know what altcoins are available within the Exchange, you can buy the ones you want within that market. Among the most important today are Ethereum, Dogecoin, Litecoin and Monero. 

What is the contribution that Altcoins offer to Bitcoin? 

It is a reality that with the arrival of these new options, Bitcoin has been able to work on its development . One of the main contributions offered by altcoins to Bitcoin is liquidity .

There are many Bitcoin transactions that are made through these alternative cryptocurrencies. Many users rely on these projects, so they tend to use them more often.

In addition to this, each project that is born with these cryptocurrencies brings a new point of view on these innovations. The search for better technology is constant , as well as new resources for the economy. In this way they gain relevance while making contributions to the Bitcoin ecosystem.  

These alternate currencies can also be used for the same purpose as Bitcoin, as a means of exchange. Payments can be made with them through different platforms , which has given popularity to some such as Ethereum. The first to have this initiative as a currency forked from Bitcoin was Namecoin in 2011.  

The future of altcoins

Many experts have assured that all these altcoins contain their development thanks to what Bitcoin has achieved. That is why all these developments have been relevant thanks to those who bet on these projects. In this way they continue to gain relevance within the markets, being profitable and achieving large communities. 

The truth is that this is a market that barely exceeds 10 years and more and more altcoins will be developed . New projects are constantly emerging that seek to gain support through the trust that users have. Within the Exchanges you can see the variety that currently exists and how new ones are added

Now that you know all this information, it’s time for you to expand your knowledge with the help of our basic online cryptocurrency course . You just have to join the MegaAcademy course where you can have much more information about the world of cryptocurrencies. Through videos you can have all the necessary tools to delve into this topic and be an expert.

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