0:59
beginner
June 13, 2022
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what is an altcoin?

As Bitcoin (BTC) holds the crown of the first and biggest cryptocurrency, any other crypto is labelled an altcoin purely because it is an ‘alternative’ cryptocurrency to BTC. The leading altcoins by market-cap are Ethereum (ETH), Binance (BNB) and Ripple (XRP).

However, because of its smart contract capabilities and the popularity of NFTs, ETH has risen dramatically since 2015. ETH has a market capitalisation of almost $500 billion. Due to this reason, some people do not acknowledge ETH as an altcoin.

Altcoins seek to overcome the perceived constraints of BTC's system. Litecoin (LTC) was one of the first major altcoins; it separated from the BTC blockchain in 2011. LTC is less energy-intensive and faster than BTC's algorithm, but simply because LTC is not BTC, it is labelled as an altcoin.

The current status of the altcoin marketplaces suggests that a single cryptocurrency is unlikely to emerge. However, the majority of the altcoins listed on crypto exchanges are unlikely to survive. The altcoin market will likely concentrate on a handful of coins that will dominate the markets—those with great innovation, use cases, and a definite blockchain purpose.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

what is an altcoin?

As Bitcoin (BTC) holds the crown of the first and biggest cryptocurrency, any other crypto is labelled an altcoin purely because it is an ‘alternative’ cryptocurrency to BTC. The leading altcoins by market-cap are Ethereum (ETH), Binance (BNB) and Ripple (XRP).

However, because of its smart contract capabilities and the popularity of NFTs, ETH has risen dramatically since 2015. ETH has a market capitalisation of almost $500 billion. Due to this reason, some people do not acknowledge ETH as an altcoin.

Altcoins seek to overcome the perceived constraints of BTC's system. Litecoin (LTC) was one of the first major altcoins; it separated from the BTC blockchain in 2011. LTC is less energy-intensive and faster than BTC's algorithm, but simply because LTC is not BTC, it is labelled as an altcoin.

The current status of the altcoin marketplaces suggests that a single cryptocurrency is unlikely to emerge. However, the majority of the altcoins listed on crypto exchanges are unlikely to survive. The altcoin market will likely concentrate on a handful of coins that will dominate the markets—those with great innovation, use cases, and a definite blockchain purpose.

*The content hereby presented is for informational purposes only. Nothing of this content that is available to you shall be considered as financial, legal or tax advice. Please, keep in mind that trading cryptocurrencies pose a considerable risk of loss.

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