What is the difference between Bitcoin and Altcoin in virtual currency? Many people do not understand. Altcoin is “Alternative Coin” and means an alternative coin. So how is it different from Bitcoin?
What is Altcoin?
Altcoin is a general term for virtual currencies other than Bitcoin. “Alternative Coin” is the official name, and altcoin is an abbreviation. There are famous coins such as Ethereum, Ripple, and Monacoin, but they are all altcoins. Altcoins have a lower market capitalization than Bitcoin.
Difference between Altcoin and Bitcoin
The differences between altcoins and bitcoins are as follows:
Unlike Bitcoin, there are many different types of altcoins. There are suspicious coins that look like scams, and there are also popular altcoins like Ethereum. It is said that there are thousands of altcoins. It has a wide range of uses.
Altcoins have a very low market capitalization. Bitcoin is handled by exchanges around the world, but altcoins are characterized by relatively few exchanges handling them. This is also why altcoins are characterized by low value.
Altcoins are highly liquid. It is easy to create trends, and once it starts to fall, it will fall at once, and in some cases it will skyrocket. Financial assets with a large market capitalization have less impact on the price of large transactions, but altcoins are characterized by their low value, which makes them prone to extreme movements.
Difference in usage
Each altcoin has different characteristics depending on the purpose of development. Bitcoin has a fixed use, but there are too many types of altcoins in the first place, so the uses are quite different. It is better to understand the characteristics of each currency before purchasing.
When choosing an altcoin, the following coins are recommended. Because it is very safe considering the future, demand, and name recognition.
|market capitalization 2022||49,112,745,993,694 yen|
Ethereum is the second largest cryptocurrency by market capitalization after Bitcoin. It is the most popular altcoin. A major feature of Ethereum, unlike Bitcoin, is the ability to implement smart contracts. A smart contract is a system that can automatically execute various contracts and transactions.
|market capitalization 2022||2,783,815,928,026 yen|
Polkadot has the ability to connect and synchronize different blockchains. Since Polkadot is a parallel blockchain, transaction processing is fast, so remittance processing is also faster than Bitcoin and Ethereum.
|market capitalization 2022||96,114,778,345 yen|
OMG is an altcoin based on Ethereum. As a feature, the processing speed is faster than Ethereum, and it is processed at about 400 times the speed. This coin is also invested by companies, so it is highly trusted by users.
|market capitalization 2022||1,078,969,773,525 yen|
ATOM is a virtual currency traded on the Cosmos blockchain. Cosmos aims to make it easy for anyone to develop and use blockchain. ATOM can use incompatible blockchains, so there is a high possibility that it can be used in various situations in the future.
|market capitalization 2022||5,155,066,010,585 yen|
Ripple is the 6th largest cryptocurrency by market capitalization and is controlled by Ripple. Ripple, which was developed as a payment system, is managed only by Ripple’s server, so it is popular because of its fast remittance speed and low fees.
Open an account for free
MEXC can trade all of the above altcoins. You can open an account for free. Please refer to the article below for an introduction.