Altcoins are one of the most interesting topics today. Know the altcoin meaning and possibly help you in choosing the best altcoins to invest in.
Altcoin remains to be one of the most bewildering aspects of cryptocurrency. Their creation seems to expand at the same rate as our knowledge and expertise in blockchain technology. ADN Coin itself is an altcoin, albeit a new and innovative one that aims to improve the blockchain sphere by enabling more secure initial coin offerings (ICOs).
That is why we try to break down altcoin in this blog. We hope that by the end of this blog, you will be able to fully grasp the altcoin meaning and possibly decide to invest in the best altcoins today.
What is an Altcoin?
Altcoin is the shortened form of “alternative coin”. Basically, every cryptocurrency you see that is not Bitcoin is considered to be an altcoin (or alt token). You may also consider altcoins those that even have Bitcoin in their names, like Bitcoin Cash, Bitcoin SV, and Bitcoin Gold, to name a few.
If getting the definition of an altcoin is what you came here for, then the above paragraph has already solved your question. However, the world of altcoins is an interesting subject for any cryptocurrency enthusiast. Arguably all claim to be better than Bitcoin, and some even have a very fascinating history to tell.
For example, the popular altcoin Ethereum opened blockchain technology to a whole new use case — smart contract and decentralized application (DApp) creation.
Before, people only thought of blockchain as a conduit of peer-to-peer transactions. But when Ethereum arrived, people began to tinker with the technology to solve most of the problems they had with their systems. Let’s discuss Ethereum more in a bit.
Blockchain technology, through the existence of altcoins, has even created new enterprises today. Examples include tokenization services, Blockchain-as-a-Service (BaaS), and more.
Coin Versus Token
You may have also been wondering why a specific cryptocurrency is called a “coin”, like Dogecoin, while another is called a “token”, such as Basic Attention Token (BAT).
The most basic explanation is that a coin has its own blockchain or distributed ledger, while a token doesn’t have, and it uses another’s for it to function.
For example, Dogecoin is considered a coin because it has its own blockchain — it forked from Bitcoin. On the other hand, Basic Attention Token (BAT) thrives on the Ethereum blockchain and enables users to do a number of actions native to the Brave browser and its community.
Tokens can be further subdivided into many categories, even though the most common are utility tokens and securities. Given that the blockchain industry keeps on expanding, and additional use cases are being identified, there will be more categories that will pop up in the future. Read about these in the token types section of our ICO blog.
Ethereum is arguably the most popular altcoin for many reasons. First, it is ranked second in terms of market capitalization. Second, it is the trailblazer of smart contracts and DApps. Third, it has a very large community of users, DApps, and developers that are working together to improve it.
In fact, so many blockchain systems were created to either compete with or improve Ethereum. Bitcoin has altcoins that are aimed at competing with it, but they are left in the dust. For Ethereum, the competition — comprised of Tron, EOS, NEO, etc. — is very tight.
Aside from typical cryptocurrencies like Litecoin, and blockchain ecosystems like Ethereum, there exists another sub-category of altcoin that we call stablecoins.
Stablecoins are a class of hybrid altcoins that possess some properties of cryptocurrencies, as well as some of fiat money. Usually, these are tied to an existing physical asset — gold, government-backed currency, or other precious commodities — which enable them to remain stable despite the volatile nature of cryptocurrencies, hence the name.
On the other hand, they run on a specific blockchain, thereby allowing them to be immutable. This will prevent double-spending, a common problem that the traditional money system struggles with to this day.
Perhaps the most popular stablecoin is USDT, an altcoin created by Tether. As the name suggests, USDT is pegged to the US dollar. Regardless of any trend in the crypto market, USDT’s price will remain to be $1 per piece.
You might have also heard of this term before, especially across various crypto investment circles. And if you’re rooting for a particular altcoin, then hearing this will obviously paint a smile on your face and make your crypto wallet even happier.
Short for ‘altcoin season’, altseason simply means a phase in time wherein altcoins will shoot up in price and probably challenge Bitcoin’s market dominance. This occurred in late 2017 up to the beginning of 2018 when most of the altcoins skyrocketed in price.
Some notable altcoins that rose at that time were Ethereum, which reached about $1,400 per piece, Bitcoin Cash, which hovered around $4,000 for a time, and Litecoin, which spiked to up to $350 each.
Today, many experts are predicting that the next altseason will be coming soon. However, it is not as many are expecting. Some say that the altseason will come once the Bitcoin price consolidates, while others, with the use of Fibonacci retracement, are predicting that the decrease in altcoin price is about to end — resulting in an altseason.
Furthermore, there are popular cryptocurrencies today which weren’t present before, especially Binance Coin, which has already posed significant gains since its first listing.
That is why experts are cautioning the crypto community to anticipate the altseason with vigilance and proper research because it will not be the same as the first one.
The ICO Security Altcoin
Also, take note of ADN Coin, our very own altcoin used both as a store of value and the chief gas for fueling the creation of DApps and the holding of ICOs. We aim to improve the quality of DApps that are being created by looking for investors that are willing to trust the operations and the end product.
We also aim to protect the interests of crypto investors, especially by providing additional security measures on top of informing everyone to be diligent in research and cautious in investing. This includes the ICO Wallet and our mainnet, which our developers have been engrossed in since our founding.
Saying that cryptocurrencies and blockchain technology are a jungle is a sheer understatement. Since the creation of Bitcoin, the blockchain world has evolved to become an entirely different world that deserves the respect and attention it has today.
The mere existence of altcoins is a testament to the growing maturity of humans, as we are always on the lookout for better innovations.
It also shows the world that most of us are humble and courageous enough to point out the problems of our current systems, and to actually have the guts to stand up and work on our proposed solutions.
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