Regarding virtual currencies (crypto assets), I will explain whether there is a difference between Bitcoin and altcoins (Ethereum, Ripple). Altcoin is “Alternative Coin” and means an alternative coin. So how is it different from Bitcoin?
What is Altcoin?
Altcoin is a general term for virtual currencies other than Bitcoin. “Alternative Coin” is the official name, and “Altcoin” is the abbreviation. There are famous coins such as Ethereum, Ripple, and Monacoin, but these are all altcoins. Altcoins have a lower market capitalization than Bitcoin. Currently, no matter which service is operated, information often refers to it as an altcoin. You can aim for big profits by exchanging newly issued stocks and seeing the prices skyrocket. You can aim for profits because there is a lot of fluctuation, but be careful as it is easy to make losses when buying and selling.
Difference between Altcoin and Bitcoin
The differences between altcoins and Bitcoin are as follows. If you don’t have knowledge about altcoins, there are cases where there is no benefit to holding the latest currency in your wallet. The problem is that unless a listed coin like Litecoin or Bitcoin Cash comes out, there is no hope for it and it will not gain value in the market. Reliability is also important when predicting the future.
kinds
Unlike Bitcoin, there are many types of altcoins. There are dubious coins that look like scams, and there are also well-known altcoins like Ethereum. It is said that there are thousands of types of altcoins. Therefore, its uses are wide-ranging. Each project responds differently to technology, with some lacking in security and others struggling to raise funds. Compared to Bitcoin, altcoins have a large gap, and there is a large difference in popularity rankings.
market capitalization
Altcoins have a very low market capitalization, so there is some risk. Bitcoin is handled by exchanges around the world, but altcoins are handled by relatively few exchanges. Because of this, altcoins are characterized by low value. There are many coins that have low value on the market chart and are stuck at the bottom at the time of listing, so even if they are sold or have their own tokens, you may not feel like placing an order. You have to decide whether you want to have it yourself.
Liquidity
The disadvantage of altcoins is that they have very high liquidity, making it difficult to utilize and trade them. One thing to keep in mind is that trends are easy to form, and there are times when prices will rise, but once they start falling, they will fall all at once, and there are also cases where prices will skyrocket. Financial assets with a large market capitalization have less impact on the price from large transactions, but altcoins have a low value and are therefore prone to extreme movements. It will take courage to start. For coins that have been released and are in circulation, you will need to check the market price before starting.
Difference in usage
Recent altcoins have different characteristics depending on the purpose of development and trends in business. Bitcoin has a fixed purpose, but since there are so many different types of altcoins, their uses vary widely. It is better to at least research and understand the characteristics of each currency before entering and purchasing them. The key is whether it will rise in the future and whether the situation can be predicted.
Altcoin recommendation
When choosing an altcoin, we recommend the following coins. It has the potential to become a key currency in the financial digital industry. This is because it is very safe considering future prospects, demand, and popularity. Specifically, if you are going to invest, it is safer to choose a major coin that is highly safe, but there are cases where minor coins can yield the greatest profits. Although it is difficult, I would like to introduce tokens that are already in demand and are expanding sufficiently.
ETH
| Name | ethereum |
| Symbol | ETH |
| market capitalization 2022 | 49,112,745,993,694 yen |
Ethereum is the second largest cryptocurrency by market capitalization after Bitcoin. It is the most popular altcoin. A major feature of Ethereum, unlike Bitcoin, is the ability to implement smart contracts. A smart contract is a system that can automatically execute various contracts and transactions.
DOT
| Name | Polkadot |
| Symbol | DOT |
| market capitalization 2022 | 2,783,815,928,026 yen |
Polkadot has the ability to connect and synchronize different blockchains. Since Polkadot is a parallel blockchain, transaction processing is fast, so remittance processing is also faster than Bitcoin and Ethereum.
OMG
| Name | OMG |
| Symbol | OMG |
| market capitalization 2022 | 96,114,778,345 yen |
OMG is an altcoin based on Ethereum. As a feature, the processing speed is faster than Ethereum, and it is processed at about 400 times the speed. This coin is also invested by companies, so it is highly trusted by users.
ATOM
| Name | ATOM |
| Symbol | ATOM |
| market capitalization 2022 | 1,078,969,773,525 yen |
ATOM is a virtual currency traded on the Cosmos blockchain. Cosmos aims to make it easy for anyone to develop and use blockchain. ATOM can use incompatible blockchains, so there is a high possibility that it can be used in various situations in the future.
XRP
| Name | Ripple |
| Symbol | XRP |
| market capitalization 2022 | 5,155,066,010,585 yen |
Ripple is the 6th largest cryptocurrency by market capitalization and is controlled by Ripple. Ripple, which was developed as a payment system, is managed only by Ripple’s server, so it is popular because of its fast remittance speed and low fees.
Open an account for free
MEXC can trade all of the above altcoins. You can open an account for free. Please refer to the article below as it is introduced. With a wide variety of products, news constantly being distributed, and updated content and categories, trends are attracting a lot of attention. Basically, we have obtained a license from the Financial Services Agency, so you can rest assured.
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