How are Altcoins different from Bitcoin?

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Bitcoin is the first cryptocurrency that was launched in 2009

The rapid popularity of cryptocurrency has led to the creation of thousands of them. If they offer options to investors, they also make them nervous. Given the relatively new nature of the industry, it is wise to be able to tell them apart. Basically there are two categories: Bitcoin and Altcoins. Given its dominant appeal, Bitcoin is the largest crypto. As the blockchain technology, on which cryptocurrency is based, matured, it has led to the emergence of a number of new crypto coins like Ethereum. These new coins were nicknamed altcoins, short for alternative coins.

These altcoins are based on the same principle as Bitcoin but take it a step further with some unique additions and features.

What is Bitcoin?

Bitcoin is the first cryptocurrency, offered in October 2008 and launched in January of next year. It was invented by a pseudonymous person or group of people known as Satoshi Nakamoto. Bitcoin is a decentralized peer-to-peer digital currency and all transactions are entered into an online public ledger accessible to everyone. It does not require any intermediary, for example a bank or any other financial institution, to facilitate transactions.

What is Altcoin?

With the exception of Bitcoin, all other crypto coins are generically referred to as Altcoins, which basically means an alternative to Bitcoin. There are over 11,000 crypto coins listed on CoinMarketCap, a market research organization. These are all altcoins.

How are they different from Bitcoin?

Altcoins were built on the success of Bitcoin by modifying the rules slightly to appeal to specific users. For example, Ethereum, the second largest cryptocurrency by market cap, introduced the idea of ​​smart contracts. These smart contracts are basically codes that only execute when predetermined conditions are met. They execute agreements between two parties using blockchain technology, opening up possibilities for the development of new applications for crypto.

Altcoins have improved functionality, transactions, and scaling to meet the rapidly expanding demand. As the altcoin market continues to expand, many wonder if the advance of the original cryptocurrency will end with one of its successor coins. Simply put, Bitcoin is the number one cryptocurrency and all the rest are Altcoins.

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