Other than Bitcoin (BTC), all cryptocurrencies are known as altcoins. Some people limit the definition of altcoin to include cryptocurrencies other than Bitcoin and Ethereum (ETH). Some altcoins use distinct methods for confirming transactions and creating new blocks, or try to distinguish themselves from Bitcoin and Ethereum by providing unique features or functions.
The majority of altcoins are created and released by individuals with a distinct vision or purpose for their tokens or cryptocurrency. Discover how altcoins differ from Bitcoin and other cryptocurrencies.
In the cryptocurrency world, “altcoin” is a portmanteau of the two terms “alternative” and “coin.” It’s generally applied to all cryptocurrencies and tokens that aren’t Bitcoin. Altcoins exist on their own blockchains, which were expressly created for them. There are many instances where a group of developers quarrel with others and depart to construct their own coin. The majority of the time, a collection of developers disagree with one another and split off to create their own currency.
There are many different types of altcoins, each with their own purpose. Here is a summary of some popular altcoin categories:
- Payment Token
- Stablecoins
- Security Tokens
- Utility Tokens
- Meme Coins
- Governance Tokens
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