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Altcoins

Altcoins are a category of cryptocurrencies that are alternatives to Bitcoin, the original and most well-known cryptocurrency. The term "altcoin" refers to any digital currency launched after Bitcoin and includes a wide range of coins and tokens with varying purposes and technologies. Some altcoins aim to improve upon Bitcoin’s design by offering faster transaction speeds, enhanced privacy features, or more energy-efficient consensus mechanisms. Others serve specific purposes, such as facilitating smart contracts, decentralized applications, or staking.

Example

Ethereum, the second-largest cryptocurrency by market cap, is an altcoin that supports smart contracts and decentralized applications on its blockchain.

Key points

• Refers to all cryptocurrencies other than Bitcoin.

• Includes coins and tokens with various use cases and technologies.

• Offers alternatives to Bitcoin’s design and functionality.

Quick Answers to Curious Questions

Altcoins are cryptocurrencies that serve as alternatives to Bitcoin, offering different features, technologies, or use cases.

Investors buy altcoins to diversify their cryptocurrency portfolios, take advantage of different features, or invest in emerging technologies within the crypto space.

Altcoins often differ from Bitcoin in terms of transaction speed, consensus mechanisms, privacy features, and specific use cases like smart contracts or decentralized applications.