What are altcoins?
Right after the creation of bitcoin, many other alternative cryptocurrencies began to appear, which are altcoins. Altcoins stands for alternatives coins, that is, all cryptocurrencies other than a bitcoin. The first altcoin was the Namecoin network as the first altcoin.
Developer Andrew Chow is the one who gave altcoins its name.
In general, altcoins work in the same way as bitcoins.
You only have to use a private key; through the use of that key you can send a payment from the digital wallet you use to the wallet of another user.
Altcoins work on a blockchain, which is similar to a ledger of record, so all transactions are permanently and publicly recorded here, so exchanges will not be altered after the fact. At the same time, the blockchain is protected by mathematical proofs.
Altcoins are categorized at the same time.
These seek to improve Bitcoin while reducing volatility. What you do is link the value of the coins to the existing coins.
– Security tokens: for their part, these are linked to a company and are often launched in an initial coin offering.
– Utility tabs: These altcoins provide a claim on services and are sometimes usually sold as part of an ICO.
– Mining-based: Finally, when it comes to these types of altcoins, they are used through mining to simultaneously generate new coins by solving challenging block problems. These are the most similar to bitcoin. Among the most famous we have Ethereum.
Altcoins are an excellent option to invest in the event that you want to go at least mainstream (which would be Bitcoin), you can also get them on different platforms.