Assuming you have read the definition of cryptocurrency and blockchain technology in Jeton blog articles and many resources on the internet, we will provide information about altcoins and talk about how many types of altcoins there are. There are thousands of altcoins in the cryptocurrency industry. It is possible to see these altcoins and their charts on cryptocurrency exchanges and exchange platforms for investment.
Bitcoin vs Altcoins
As you know, Bitcoin is the first in this industry and is now a cryptocurrency that the world knows and uses. Many countries even use it as legal currency. Altcoins are on the market as an alternative to Bitcoin. The number of companies that accept payments with altcoins is also increasing day by day. Companies that use and develop cryptocurrency technology are launching their own altcoin, but there are also those that attract a lot of attention among the altcoins released for different purposes. While many people do a lot of research before making an investment decision, some just look to see if it’s popular and act on the community. Investing in popular altcoins can sometimes pay off, but it is not a recommended choice because the risk is too high. Altcoin investing should be made by people who know the cryptocurrency market, can analyze and are patient.
Types of Altcoins
We mentioned that there are several types of altcoins. These are available as protocol coins, meme tokens, and app tokens. Those with their own blockchain are protocol coins, and miners for these altcoins are rewarded with protocol coins for their contribution to the network process. It is recommended to research in detail the concepts of Proof of Stake and Proof of Work, which are important for miners.
App tokens benefit application development on the blockchain using smart contracts. Anyone with blockchain and software knowledge can develop applications on the Ethereum blockchain using smart contracts. These applications have certain purposes. App token holders are given some privileges, for example, people who use the app and hold app tokens can make discounted transactions.
Everyone has heard of Doge and Shiba. Although these altcoins are for entertainment purposes, they take a lot of investment. There are many users who support these cryptocurrencies with their own communities. These meme tokens, which do not have their own applications, are built by smart contract. These altcoins can be traded and transferred.
How to Buy Altcoins
Altcoins, which make up a large part of the market, can be seen as a short or long-term investment tool. Altcoins, which can be purchased from exchanges with fiat money, can also be obtained in different ways, such as mining. The number of altcoins is constantly growing and available to investors, as they offer so many opportunities to investors and can be easily built on the network. The adventure of some altcoins may not take long, as they are quickly released and are not useful. It is possible to say that altcoins belonging to quality projects that contribute to crypto technology and alleviate the transaction load are more preferred by conscious investors.