Bitcoin is a digital currency that has left many investors wondering what more the coin has to offer. Since it was launched, it has given investors a reason to study and analyze the cryptocurrency and want to invest more in the digital world.
Every investor wants to know that their money is safe, that every transaction they make is not known to everyone and to know that they can make money any time of the day without limitation of boundaries, currencies or the government policies, well that is what bitcoin is all about.
Bitcoin has come to revolutionize the way business is transacted. More and more investors are placing their money in the coin in the hope of gaining a return. So far, the coin has been doing well, it is known to many business people and many accepting it as a mode of payment.
With all this awareness and use, many investors have been studying the bitcoin to see if there is more it can be done to make it better. That is because despite being a crypto worth investing in, it is also a coin that needs a lot of changes.
To the many users who have been trading the coin, it is evident that they have been complaining of the high transaction fee, the delay in confirming the transactions and many other issues that need to be changed to make it better. That is where the altcoin came in.
What is Altcoin?
Just like the name suggests, it is an alternative coin. They are digital currencies that are not bitcoin. many developers and innovators have been studying the bitcoin. That is in the aim of making it better and more affordable to the investors. That is how the alternative coins come to be.
While bitcoin is an open source platform where everybody can invest and participate in, many developers have seen the need for there being some altcoins that have been built based on what bitcoin is all about. What motivates the altcoins creation?
When an innovator wants to come up with an altcoin, they look at the bitcoin and try to divert from bitcoin fundamental features. That includes employing different proof of work algorithm, mining, coin functioning and distribution level.
Origin or the altcoin
There are so many altcoins that have been created. Some have been giving bitcoin the run for their money and some die 3 months after development. More and more innovators have been working day and night to come up with better coins than the bitcoin.
It all started in the year 2011 with the development of the name coin. The main aim of building the coin was to decentralize the domain name of the bitcoin. did it achieve the purpose? Yes, it did, but it still had a lot of loopholes that needed to be sealed for it to be a better coin than the bitcoin.
Over the years, changes have been taking place to the name coin. Unfortunately, many more developers have been also trying to come up with many more altcoin and that has seen name coin having so many other coins to compete with.
Altcoin has been surfacing in every new day. Many have been promising and under delivering while others have made a better version of the bitcoin. That has seen the bitcoin having worthy competitors and that has seen the coin undergo improvements to beat competitors.
Importance of altcoin
Bitcoin has been doing well in the market. The unknown developers have done a good job if papalizing the coin. That has seen the coin having a big share capital, trading in almost all exchange market and gaining trust in many investors. What does that mean?
That means no crypto that has successfully been able to be better than the bitcoin. they are all made to seal the loopholes that are found in the bitcoin but none has been able to have better features. With that said, why are they important?
When you have a crypto coin, there is always a group of people using the coin in terms of trading with it or using it to buy goods and services. When you have many cryptocurrencies, there will be more than one community using a certain currency hence decentralizing the use of one coin.
- Give room for thinking
If there was no room for more currencies to innovate, developers would not have brilliant ideas on how to make Bitcoin better. Creators have taken this opportunity as a time to experiment and implement new features that bitcoin does not have.
People tend to be bored with one thing. It is common in every person that they would want a new thing in the market better than what they have. That has driven innovators to come up with new altcoins to break the monotony.
Is it worth investing in the altcoins?
I know as an investor, that is a question you must be asking yourself. It is true you must know what you will get in return after investing your money in a certain digital coin. What you should know first is that all cryptocurrencies including the bitcoin are volatile. What does that mean?
It means that their prices are bound to change within a minute. That means that you cannot be able to predict the behaviour of a certain currency in the market. When it comes to the altcoin, they are more volatile than the bitcoin, their prices tend to flatulate more in the market.
Talk about the value of the altcoin. Its value largely depends on the bitcoin value. It, therefore, means when the value of the bitcoin goes down, the value of the other altcoin goes down too. That means the market behaviour of the altcoin largely depends on the bitcoin.
Compared to the bitcoin which has a large capitalization in the market, if you have an alternative, you should invest in the bitcoin and any other altcoin that is closer to it. this is to get the full advantage of what the bitcoin has to offer. If you must invest in any other except bitcoin, research first.
How can you get the altcoin?
For you to be able to know the many altcoins available in the market, you must be very observant. You must be on the lookout for what developers are saying and what is coming soon in the market. With that information, you will be able to know which the best is to invest in and which to avoid.
Once you have enough information about the altcoin you are interested in, you need to look for a way you can obtain the coin. One way of getting the currency is by accepting it as a mode of payment for goods and services in your business.
Another way in which you can obtain the coin is by using the exchange market. This is where you get to buy or sell the cryptocurrency online. You need to create an account with any of them and using your fait money or bitcoin, you can buy the altcoin you are interested in.
Top 5 altcoin need to Know About
Like I keep on mentioning, before you invest your hard-earned money in any coin, you must inform yourself about it. read to know what you will get from the coin before you can go ahead and own the coin. The following are some of the altcoins that have been trending over the years;
Ethereum is second to bitcoin. it is a very aggressive platform seeking to rectify the loopholes of the bitcoin. it is sponsored by the ether group of companies and uses smart contracts to operate in the platform. Why is Ethereum better than the bitcoin you may ask, right?
The Ethereum was meant to allow development of thousands of different applications on one platform intends of coming up with an original block for every new chain. With that, you have many transactions approved in a minute hence faster and more convenient.
- Ripple coin
It is one of the most successful altcoins. That is because of the way it was accepted after it was launched and how it has been performing in the stock market. It also attributes its success to the impressive funding and backing that it receives from its sponsors.
The creators of the ripple coin had one thing in mind, to provide unique solutions for banks to speed up transactions time and for the fee to be low. It has managed to convince several banks to work and adapt their method of doing transactions.
Part of why they are successful is because they accept any unit of value, that encourage investors from all walks of life to invest in the coin. When it comes to mining, it is energy efficient and their transaction is approved faster than the bitcoin.
Each altcoin tends to take advantage of the bitcoin and make changes in the coin to make an altcoin that is functioning more efficiently than the bitcoin. bitcoin being a decentralized coin, the ripple coin was made as a centralized currency for exchange.
- Bitcoin cash
When the bitcoin was launched, innovators saw the need to have a bitcoin cash to complement the bitcoin itself. It was known for its reliable confirmation of transactions and low affordable fee for its users. So, what happened to the coin? Is it still around?
It is still in existence but informs of a very different product. It is reliable, very secure and scalable. When it comes to its usage, the coin is easy to use and once a user uses it, it is very fast in form of transaction confirmation and the fee is pocket-friendly.
- NEO coin
It is a coin that is on top and doing well now. The currency runs on the Ethereum blockchain and is meant to wrong on the bitcoin. t is nicknamed as the Chinese Ethereum since it was first launched and used in China. What are the special features that make it better than the bitcoin?
Unlike the bitcoin which supports only one language, the NEO coin supports more than one language for coding. That is an advantage that has attracted a lot of investors and coin users. It can also be used for more than one purpose making it ideal, unlike bitcoin which is only used as a coin.
It has undergone a lot of improvements and changes to make it better and more functional. That has made it have more and faster transaction confirmation on its platform. The transaction fee is also low and it is user-friendly, something bitcoin has not been able to achieve.
- Vert coin
It is a decentralized coin that is owned and run by its users. Its main aim is to make mining easier by removing the ASCI from the mining system. That makes mining less costly and hence anyone with a computer in the house can mine and make coins from mining.
With the Vert coin, mining is easier because of the 1-click Vert coin miner. That enables a miner to set his or her computer in a way that the pc automatically mines the coin without the miner being a presence on the PC, that is unlike the bitcoin which you must be present and invest heavily on the hardware.
Altcoins are meant to make the features of the bitcoin better and some time to outshine the bitcoin. there is no coin that has been able to perform better than the bitcoin, but they have been able to solve many issues that have been wrong in the bitcoin trading.
Do you need to invest in the altcoin? The answer is yes. If you want to solve proof of work, mining and distribution issues that come with the bitcoin, you need to invest in other coins for you to get the best of the digital currency in the future.