Altcoin

Altcoin, which means alternative coin, is the name given to all cryptocurrencies other than Bitcoin, which are derived with different algorithms. Altcoins emerged as a rival to Bitcoin in the crypto money world, and they were quickly produced in line with different projects, both in the Bitcoin network and other blockchain networks. Many cryptocurrencies that set out to eliminate the disadvantages of Bitcoin (low block creation speed, high transaction fee, low block size, etc.) or are launched to directly fund a new project, aim to replace Bitcoin or even surpass Bitcoin. These newly released coins have taken up almost sixty percent of the cryptocurrency market over time. In this direction, thousands of altcoins have emerged, some of which are promising, revealing a vision, and some aiming to make a profit by rising in a short time. Today, altcoins are evaluated in various categories in terms of their launch purpose, volatility values ​​(stablecoins vs. others), functions, and services they offer to users. If you need more than a definition, check out our altcoin content for comprehensive information.

Why Are Coins Other Than Bitcoin Called Altcoins?

The naming of cryptocurrencies other than Bitcoin in this way symbolizes that Bitcoin is accepted as the main currency of the crypto money world and that the crypto money that came out later is crypto money that is trying to be an alternative to Bitcoin.

Why Did Altcoins Emerge?

The growing interest in the cryptocurrency world has meant an increase in both investors and miners. Creating alternatives to Bitcoin technology, which has a high difficulty level of creating new blocks, would mean creating ecosystems in which the block rewards that miners can get increased. That’s why the idea of building new blockchain networks and mining systems has created excitement among the followers of the blockchain world.

Also, although Bitcoin offered a whole new idea of a financial world with its decentralized structure, it had several shortcomings. For instance, the transaction fee was not low enough, there was a chance that the transaction speed would be higher, and assets that could be more useful in various DeFi services could be launched. Also, creating convenient ecosystems for dApp development processes could create a competitive environment, it could have produced more beneficial results in the final.. Many altcoin projects emerged for these two reasons in the first place.

Advantages of Altcoins

• High liquidity
• The number of users is high
• Mining service is more convenient and easier (compared to Bitcoin)
• Many have a higher processing speed
• More open to technical developments and easier to develop
• Provides investment diversity
• Since the fluctuations in prices are high, the probability of earning is high
• Enables many operations (lending, borrowing, yield farming, liquidity mining, etc.) in the DeFi world

Disadvantages of Altcoins

• Large losses may occur in high fluctuations
• You may terminate your investment in high potential coins from the effect of fear in sudden decreases.
• Since new altcoins are constantly being created, it is necessary to do detailed research and invest. There is a possibility to run across a scam coin.

Does Altcoin Investment Make Sense?

Don’t be tempted by the temptation to make high returns and invest randomly. The altcoin project with great potential should be invested. Instead of investing in coins that gain instant popularity, investing in altcoins with potential and a bright future can be a better decision for long term.