Understand Altcoins

Sajjad Hussain
May 2 · 3 min read
Photo by Clay Banks on Unsplash

The main purpose of cryptocurrency is nothing more than secure transactions over the internet without any regulatory agency involvement, after Bitcoin, the Altcoins are favorite among investors, due to Altcoins unique positions in the cryptocurrency market, and the future prospects of Altcoins that enables investors to earn exponential income and without much effort, but in order to get incredible income from Altcoin, investors must possess or acquire a great deal of information because most of the Altcoin technically complicated and to identify them as a valuable asset is an essential requirement. The continuous price fluctuation is the direct cause of the declining dominance of Bitcoin over the cryptocurrency world and that will also the leading factor for the emerging growth of Altcoin over the last years.

Bitcoin mostly recognizes as the tool for storing the current value of the funds but its fluctuations and plummeting values always frightened investors, the programmable coins that have an additional capacity of customized functions become more attractive for those type of investors who understand the real value of BTC and think smart contract led coins are more valuable than Bitcoin. Investors always select those projects that enable them to earn the maximum amount of profit as Rothschild Investment firm invested heavily in Ethereum.

Due to the great success of Bitcoin, the number of Altcoins born one after another, the number of Altcoins created by the fans of Bitcoin in order to get rich and even without doing any hard work, so fans pick the original code of Bitcoin blockchain, modify the behavior a little and published for public utilization if you go further deeper you can be found that Litecoin is a slightly modified copy of Bitcoin and the Dogecoin which first appeared in 2013 is also slightly modified copy of Litecoin

Negative impact

Due to a negative reputation, Litecoin failed to bring returns to its investors, and even in the last bull market its founder sold at its peak value and due to this no one want to enjoy this coin.

Dogecoin

Dogecoin is basically a spoof currency its concept arrives from an internet meme and the logo image is connected with Shiba Inu dog. The birthdate of Dogecoin is on December 8, 2013, based on the Scrypt algorithm, Dogecoin behaves the same as speculative hype as in Bitcoin, It is created in order to satirize Bitcoin speculative atmosphere.

SOL coin

This SOL coin is another Altcoin blockchain that contains smart contract functions and the main rival of Ethereum blockchain, the SOL coin uses two types of consensus systems, the historical proof consensus, and the potential benefit proof consensus.

The SOL also implemented the inflation adjustment mechanism, the inflation rate in SOL coin is 8% which will be intended to reduce to 1.5%, initially inflation distributed to miners and mortgagors and with the actual proportion of their mortgage.

Uma (UMA)

Uma developed by the former employees of Goldman Sachs, It is the new type of Defi(decentralized finance) Altcoin that helps everyone to enter the financial market due to dependence on Ethereum blockchain, it is one of the largest Defi derivatives projects in the crypto world.

With the help of UMA, you can track the price of all commodities, stocks, raw materials, and currencies, on UMA you can create your own synthetic tokens, you can also use this currency for real estate and mapped every real estate asset with ERC-20 tokens

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