What are crypto altcoins and is there a future for them?
‘Altcoin’ is a combination of two words: ‘alt’ and ‘coin’ where alt means ‘alternative’ and coin means ‘cryptocurrency’. Altcoins were launched after Bitcoin’s success. They generally project themselves as better replacements for Bitcoin.
Many altcoins are built based on the basic structure provided by Bitcoin. Therefore, most altcoins are peer-to-peer, require a process of mining and provide secure and inexpensive ways of carrying out web transactions. But Altcoins, even with many overlapping features, vary widely from one another. For example, some altcoins use a different consensus mechanism to produce blocks or validate transactions. Or, they distinguish themselves from Bitcoin by providing new or additional capabilities.
According to CoinMarketCap, altcoins accounted for over 40% of the total cryptocurrency market in March 2021.
Many altcoins fall under the category of “penny cryptos” (coins under $1). Such low-cost tokens attract most crypto investors, as they’re usually seen to have explosive growth potential. Market participants are on the lookout for penny cryptos that could be the next Dogecoin. Among “penny cryptos” we can highlight Holo (HOT), Chiliz (CHZ) and Harmony (ONE) (check one crypto price prediction).
There are other categories of altcoins: mining-based, stablecoins, security tokens, utility tokens and others.
It’s hard to predict the future of altcoins. Some of them can rise while others won’t survive. On numerous websites you can find price predictions for altcoins. Just remember to use reliable sources while doing your research. For example, CoinSocialStory website posts different price predictions based on trustworthy material. There you can find cartesi price prediction or sushiswap price prediction. CoinSocialStory allows you not only to track altcoins, it also has different useful tools like coin comparitor, infographics or btc to usd calculator. “Our goal is to deliver vital data on cryptocurrencies in a visually engaging manner.” — says the CEO of CoinSocialStory.
In conclusion, altcoins are alternatives to Bitcoin. Some of them will rise in the future while others won’t survive. Invest wisely and do your own research.