Altcoins: The More You Know
The alternative digital asset, such as a coin or token that is not Bitcoin, is referred to as an altcoin. The purpose of altcoins is to leverage the crypto network that builds on top of open-source blockchain technology, providing alternative use cases to the traditional system.
Altcoins are also good alternatives for investors who are interested in diversifying their crypto portfolios. The most popular reason for trading altcoins is the possibility of a higher return on investment in the short term.
Finding the best altcoins can be tricky, as there are so many to choose from, although it’s undoubtedly worthwhile, as these coins can often provide triple-digit returns. Let’s learn more about some of the altcoins that H2cryptO offer:
Avalanche (AVAX) is a cryptocurrency and blockchain platform that rivals Ethereum. AVAX is the native token of the Avalanche blockchain, which uses smart contracts to support a variety of blockchain projects. It can provide near-instant transaction finality, and reportedly can process 4,500 transactions per second.
Cardano is third-generation crypto. Its characteristics offer the best combinations of the first and second-generation cryptos, such as Bitcoin and Ethereum. It uses Proof of Stake (PoS) instead of Proof of Work (PoW) mechanism, improving its sustainability compared to other cryptosystems. Many altcoin investors find it worth investing in Cardano.
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency that marketed itself as a “fun” version of Bitcoin with a Shibu Inu (Japanese dog) as its logo. Notable features of Dogecoin, which uses a scrypt algorithm, are its low price and unlimited supply. Dogecoin has a loyal community of supporters who trade it and use it as a tipping currency for social media content.
Polkadot is rising in rank on the list of cryptocurrency, and threatens other high-ranking cryptocurrencies like Ethereum. Polkadot is different because it offers parachains, short for parallel chains, which are series of connected blockchains. These blockchains run alongside one another in a way that speeds up transactions. Having multiple lanes to complete transactions leaves less chance for network overload.
Heralded as an “Internet of blockchains” by its founding team, Cosmos aims to create a network of crypto networks united by open-source tools for streamlining transactions between them. It’s this focus on customizability and interoperability that sets Cosmos apart from other projects.
For investors looking to diversify within crypto markets, altcoins are an inexpensive way to expand their horizons beyond Bitcoin. Rallies in cryptocurrency markets have produced returns that are multiples of those produced by Bitcoin. Altcoins are representative of the potential for cryptocurrencies to reshape modern finance.