Since the early days of cryptocurrencies, when only a few crypto assets were available, the definition of an altcoin was anything other than Bitcoin (BTC). However, today’s crypto asset market is substantially bigger, and there are now numerous currencies and tokens with applications that go far beyond that of a simple means of exchange.
The term “Altcoin,” which combines the terms “alternative” and “coin,” is frequently use to refer to all digital currencies and tokens that are not Bitcoin. All alternative cryptocurrencies besides Bitcoin are refer to collectively as altcoins (BTC). Because most cryptocurrencies are fork from one of Bitcoin or Ethereum (ETH), many people need help distinguishing between altcoins and all other cryptocurrencies.
Some alternative coins aim to differentiate themselves from Bitcoin and Ethereum by offering new or additional features or objectives, while others employ alternative consensus processes to validate transactions and open new blocks. Most altcoins are create and publish by programmers with distinct goals or purposes in mind for their coins or tokens. Platincoin offers more information about alternative cryptocurrencies and how they differ from Bitcoin.
Altcoins are categorize and have a range of features. Platincoin gives a brief overview of some of the many types of altcoins and the purposes for which they are design.
Payment tokens are use as currency—to exchange value between parties. The best illustration of a payment token is bitcoin.
Stablecoins get their value and achieve lower volatility by tying their value to commodities like fiat money, precious metals, or other cryptocurrencies. Some well-known stablecoins are the USD Coin (USDC)and Tether (USDT).
Meme coins are parodies or humorous interpretations of other well-known cryptocurrencies. They usually become well-known quickly and are frequently promote online by well-known influencers or investors looking to make quick money.
Governed tokens provide their holders with particular privileges within a blockchain, such as the ability to vote on protocol modifications or participate in the decision-making of a decentralized autonomous organization (DAO).
Although there are more than 10,000 alternative coins, Platincoin lists the top five in the cryptocurrency market:
Market cap: $143 billion
Out of 20,000 crypto assets worth almost $1 trillion, Ethereum is the largest altcoin, closely following Bitcoin. It holds more than 19% of crypto’s total market value.
Binance Coin (BNB)
Market cap: $39 billion
Binance Coin is use to pay trading commissions and receive discounted trades on the Binance exchange. It holds 5% of the total market capitalization value and is sometimes used to handle payments for services like making trip bookings.
Market cap: $17 billion
XRP is utilize to ease currency transactions of all kinds with Ripple Labs, a provider of digital technology and payment processing. It holds 2% of the entire market value.
Market cap: $13.5 billion
The first meme currency, Dogecoin, was create in 2013 as a prank. Nevertheless, it has quickly developed into a well-known cryptocurrency thanks to a committed community and inventive memes that hold 1.7% of the market cap.
Market cap: $10.3 billion
Cardano was an early adopter of the proof-of-stake consensus method, thus reducing the competitive and energy-intensive problem-solving aspect of platforms like Bitcoin and speeding up transaction times. It holds 1.2% of the entire market value.