Altcoins: everything about alternative cryptocurrency
Altcoins and their usage
Interest in cryptocurrency niche is growing, and for a long time hasn`t been focused only on the first one – bitcoin. A huge number of others are also noteworthy – Altcoins. But even in 2019, among those who have long been not just interested in crypto-topics, but interact with it, there are those who work exclusively with “cue ball”. The reasons are different, but mostly it is fear of not knowing. What is it? Let`s check out all the possibilities.
Altcoins: the main differences from bitcoins
Everything is easier than it might seem. Absolutely all cryptocurrencies besides Bitcoin are called altcoin (alternative coin). But this doesn`t mean that they are somehow worse. It’s just that by the time first token with similar functionality appeared, almost two years had passed. Bitcoin has established itself as a revolutionary digital currency based on blockchain technology.
Many have tried to completely copy an idea with minor changes and try to create more popular independent digital currency. Now altcoins are very different from each other. Most blockchain-based startups have their own cryptocurrency. The number is growing every day and they are all created to solve different problems.
But even among cryptocurrencies, where the main goal is to replace fiat, there are differences. For example, the speed of transaction. In Bitcoin, it can take several hours.
How to use altcoin?
The first and most obvious option is trading. A lot of pros have moved here from classic market because during peak periods it is often possible to fix more profits in a short time.
The main reason is high volatility. Some of coins jump greatly in price even during trading day. Thanks to this, understanding how a particular crypt should behave, it`s possible to earn much more, a couple of percent on deposit.
Another popular method is mining. At first, mining took place only using PoW technology. In short, participants connected computers to blockchain network and provided processing power for blockchain to function.
It is important to note that PoS mining has always been less profitable. PoW mining paid off faster, even though investments in computing technology were needed. Although this largely depended on price of particular altcoin. To fix maximum profit, you need to monitor which altcoin is more profitable to “dig”, and when receiving it on your wallet, without delaying transfer to more promising ones, which can grow in price faster.