All the cryptocurrency investors are aware of the fact that bitcoin has started replacing traditional investment assets such as bonds, gold, stocks, and such. People starting to know about bitcoin and interested to make some investments must wonder what are the other Cryptocurrency Wallets in the existence and whether there are others. If there is, how many are they?
Among all the cryptocurrencies invented to date, bitcoin is the most volatile one. Bitcoin hits the top news almost every day. This is why it is becoming impossible day by day for people to invest in it.
Even people are interested, it is not possible for everyone to invest in it. The volatility is another reason resisting people from investing in it. This article might be able to help you with investments in other digital assets that are comparatively cheap.
In this next part, you will find the basic information on altcoin investments. Information like its types resell values and many others have been discussed. In this regard, could be the ideal place to make some investments
You can guess something from its name. The coins are originally called Alternate Coins. it means coins that are not bitcoins. Altcoins also uses peer-to-peer technology. Therefore, it is safe and secure too. It is a modified version of bitcoin.
The work of altcoins
Generally, the function of altcoins and bitcoins is quite the same. In both cases, the crypto asset can be spent with the use of the key. And the transactions are encrypted in blockchain technology which is more of a public ledger.
With the blockchain concept, every transaction is evident with mathematical solutions. Because of the public ledger, anyone can see the transactions as they are permanently recorded. Therefore, no one can tamper with any data as it is open to all. Needless to say that it is easier and safer than bank transactions. Most transactions are not very safe. Blockchain is secure.
There are altcoins that need ”proof of stake” instead of “proof of work”. This process i.e. proof of stake is known for its verified transactions to other wallets. This process not only consumes less energy but is easier and faster as well.
The advantage of altcoins
- In general, altcoins are a better and modified version of bitcoin. Therefore, the speed, system, mining cost; everything is improved in altcoins.
- There are scope for new developments in Altcoins, as suggested by the altcoin developers.
- While making payments, altcoin does not lead to any problematic situation.
The disadvantage of altcoins
- Altcoins are undoubtedly unique and highly efficient. However, they have not yet captured the cryptocurrency market.
- Sometimes, it can fall prey to hackers or fraudulent people as well.
Different Altcoin Types
Here are some of the types of Altcoins which will help you know more about it.
- Mine-based: As the name implies, mine-based Altcoins are made through mining.
- Stable Coins: The value of these different altcoins is linked to the real world. If want to know more about it, it is a new version with features which are slightly modified than the other cryptocurrencies. A stable algorithmic currency does not have on-chain or off-chain resources to back up. Instead, it is driven by an intelligent deal at its core.
- Security Token: security tokens can be referred as a digital asset which is also an indication of total worth of a person.In simple word, security tokens are the shares of the real world. However, it can be other things as well such as a property, car, or IP. These are stored in a distributed ledger.
During the 2017 ICO craze, utility tokens were prevalent. Utility tokens are not associated with any currency or actual value. In the initial stage of ICO, an investor will get a utility token from the project. The number of tickets will depend on how much money investors have.
Finally, if you are thinking about stable coin investments whether it would turn out good or not, maybe you shouldn’t. just make a small investment with proper research. However, no matter what, find a good investment or trading platform for that.