What is Altcoins?
All cryptocurrencies apart from the original Bitcoin are categorized as "alternatives," thus making the title "altcoins.". Altcoins Contain all cryptocurrencies except for Bitcoin (BTC). Nonetheless, there's an alternate perspective that categorizes altcoins as any cryptocurrencies apart from Bitcoin and Ethereum (ETH) since a majority of cryptocurrencies stem from these two. Certain altcoins employ distinct methods of confirming transactions and generating new blocks. They endeavor to set themselves apart from Bitcoin and Ethereum by introducing fresh functionalities or objectives.
Typically, developers with distinct visions or purposes for their tokens or cryptocurrencies conceptualize and introduce most altcoins.
Fun Fact
Dogecoin is the illegitimate child of Bitcoin and Litecoin. It was created as a meme and raised by a community of internet trolls. But don't let its funny face fool you; it is still taken seriously as a digital payment method.
Understanding Altcoins
Similar to Bitcoin, altcoins function as a type of currency within decentralized finance, leveraging blockchain technology. Altcoins operate much like Bitcoin, utilizing a blockchain as a secure, widespread public ledger to validate authorized transactions. However, altcoins differentiate themselves by working on alternative blockchain systems while building upon Bitcoin's original technology. Altcoins have the potential to enhance transaction speed, execute smart contracts, improve storage efficiency, or offer additional functions. Many altcoins are available for purchase on standard crypto exchanges, just like Bitcoin.
Much like various forms of cryptocurrency and traditional currencies, altcoins serve both as a means of conducting payments and as an investment opportunity. The value of a specific coin typically relies on the interplay between supply and demand; when demand rises, the coin's value often follows suit. Different cryptocurrencies employ diverse strategies to influence the coin supply in circulation. This could involve capping the creation of new coins via mining, reducing supply by "burning" existing coins or increasing supply by introducing more coins