Bitcoin has gained popularity over years as the virtual mode of currency or cryptocurrency since its inception in 2009. The finite nature of Invest in Bitcoin is something that you should be well aware of while thinking of trading in it. There are only 21 million BTC available for mining. Out of the total number of this digital currency, 19 million is already in use. This crypto is a popular choice for trading and investing.
While on the other side, Altcoins or alternatives to Bitcoins are other cryptocurrencies, which also include fiat money. As per the link, the first altcoin was launched in 2011, but the number of altcoins has increased rapidly. You can count the total number of Altcoin on the current date as more than 19 thousand.
Why Altcoins are introduced?
Well, initially the concept of cryptocurrency was not popular then. The first bitcoin was sold at a value of $150 only. However, after a while investors realized that this currency would hit the highest place in the market.
With the support of blockchain technology, bitcoin has gained the trust and a transparent look over years. Added to this, the value of the bitcoin started increasing and reached to a height within a few years. Therefore, the attention of the market gradually shifted towards this crypto and it gained popularity.
However, the mining process, in which all the transaction is verified, is quite complex and a system needs more energy from the electric sources to complete the procedure. Therefore, the cost of electricity in the mining process is huge for bitcoin mining. Added to that, bitcoins take a long time to complete the transaction initially.
To cope with both the challenges, alternative bitcoins or Altcoins are being launched in the market. This time the transaction speed is high and these coins serve various purposes, unlike bitcoin. Even today, developers across the globe are trying to build more variations of bitcoins.
How many types of altcoins are there?
Well, with the popularity of bitcoins, investors show more interest in other cryptocurrencies, per se altcoins. You can find many types of altcoins as they are serving various purposes.
Like bitcoins, all other cryptos use blockchain systems for transactions. If you want to convert your fiat money with crypto then you have to create a digital account with a blockchain system. All recorded transaction of crypto in the blockchain system is transparent and the miners can verify them through the mining process.
The majority of the altcoins need a mining process to verify the blocks of transactions. But some of the altcoins takes a few minutes while others take more time to verify the transactions.
Like fiat currency, stablecoins mimic the value of the circulated currency and do not get increased rapidly like bitcoins. In simple words, you can convert your money to some stablecoins to do digital transfers only. This type of crypto is not suitable for trading as it replicates the value of fiat currency only.
Stablecoins are also famous among people who want to store some cryptos in their wallets. You can send this crypto to anyone virtually across the globe and you do not have to convert the value. Therefore, you can refer to this crypto as safe digital currency to deal in.
Unlike bitcoins, altcoins can be added to supply through the creation of new cryptos. The process of generating new cryptos for circulation is called the staking of crypto. The total number of bitcoin is fixed to a digit and you cannot generate more bitcoins. But, in altcoins, you can generate more coins through this staking system.
A detailed difference between both these coins
So, here are a few main differences between altcoins and bitcoins detailed. Let’s have a look;
- Altcoins have come a little late while Bitcoins are in circulation. Therefore, bitcoins have an advantage of popularity as people know the name very well. The altcoin was first introduced in 2011 and a few people can only mention the name of altcoins.
- As altcoins came a little late thus they can provide you with many benefits, unlike bitcoins. The technology is also advanced and can provide you with quick service.
Altcoins can provide you with many options and you can find various types of investments in them. If you want to play safe then you should prefer altcoins as bitcoins are volatile.