After the Bitcoin network came to life on January 3, 2009, new cryptocurrencies with different names and different functions were created as an alternative to Bitcoin. These new crypto coins created were called Altcoin (Alternative Coin). New cryptocurrencies have been issued in order to provide a less competitive environment than Bitcoin. Because Bitcoin is the first cryptocurrency and is anonymous, the competition is quite high compared to altcoins.
SHA-256 algorithm or Scrypt algorithm, which is also found in Bitcoin, is also included in altcoins. Unlike these, there are altcoins with different algorithms such as NIST5, X11, X13, X15.
Many of the altcoins in the market have emerged as defined in the ERC-20 network, which is the Ethereum blockchain system, in order to ensure that new technologies with different functions take place in the market. The transfer systems of newly released and financially innovative altcoins are made through the ERC-20 network.
The first altcoin released to the market is Namecoin (NMC).
The Cause of Altcoin
The reason for the emergence of altcoins is to grow the cryptocurrency world and this sector. It is also aimed to make faster transfer transactions than Bitcoin. Mining operations are easier with altcoins than Bitcoin. Thanks to the extracted altcoins, the market has become more active and has been created in cryptocurrencies that are transferred faster.
What Are Popular Altcoins?
The altcoin process, which started with Namecoin, has now increased considerably as a result of the launch of many crypto currencies. The most popular altcoins in the crypto money market; Ethereum, Litecoin, Ripple, Bitcoin Cash, Tether, Chainlink, Basic Attention Token, Binance Coin, 0x, Matic Network, Kyber Network, Enjin Coin, LTO Network, Compound, Synthetix Network Token, Bankor Network Token and Aave.
Advantages of Altcoins
Has greater levels of user and transaction privacy
Affordable mining services provided
Coins with higher transaction speeds
Technical improvements are made to accelerate mining
Provides more investment opportunities
Can benefit from strong fluctuations, significantly increasing earnings
Taking more concrete steps with the crypto money suitable for the purpose
Allows almost all transactions made in central financial systems in the field of DeFi
Disadvantages of Altcoins
Altcoins have advantages as well as disadvantages. There are many different altcoins, and each has different features.
They can experience strong fluctuations, leading to a significant increase in loss.
It is difficult to trust an altcoin whose name has not yet been announced. A small mistake can cause investors to panic and even the most promising altcoin to lose value.