Altcoin Explained: Pros and Cons, Types, and Future

Altcoin Explained: Pros and Cons, Types, and Future

One such type of this service token is Storj, an alternative to Google Drive, Dropbox, or Microsoft Onedrive. The platform rents unused hard drive space to those looking to store data in the Cloud. These users would pay for the service in Storj’s native utility token. The word “coin” refers Forex to a blockchain’s native cryptocurrency, while “token” refers to cryptocurrencies that are based on existing blockchains. A great many cryptocurrencies are implemented as tokens that run on the Ethereum blockchain, for example, drawn to Ethereum because of its support of smart contracts.


The word is shorthand for “alternate coin.” The term is appropriately used to refer to any cryptocurrency except Bitcoin. Ripples are referred to as Bitcoin alternatives because – at least to some extent – most altcoins hope to either replace or improve upon at least one Bitcoin component.

Ethereum and decentralised applications (DApps)

The future value of is impossible to predict, but if the blockchain they were designed for continues to be used and developed, the altcoins will continue to exist. Jake Frankenfield is an experienced writer on a wide range of business news topics and his work has been featured on Investopedia and The New York Times among others. He has done extensive work and research on Facebook and data collection, Apple and user experience, blockchain and fintech, and cryptocurrency and the future of money. Central Banks have not only studied CBDCs but some have already experimented with them. For instance, the Bank of Canada, the Monetary Authority of Singapore the Riksbank and the People’s Bank of China are among those Central Banks who are furthest along. While opponents argue that the it may be the right place for Central Banks to implement a cryptocurrency, clearly the present situation of fraud and risk with private cryptocurrencies isn’t working either.

  • Despite the myriad of uses that each of the thousands of Altcoin tokens in existence have, there are generally four types of uses for Altcoins.
  • Dogecoin is the original meme coin, famously started as a joke in 2013.
  • Altcoins are referred to as Bitcoin alternatives because – at least to some extent – most altcoins hope to either replace or improve upon at least one Bitcoin component.
  • She has worked in multiple cities covering breaking news, politics, education, and more.
  • A rare indicator, the Gaussian Channel , remains red but based on previous Cycles, by the time it turns green, Bitcoin already has the first mini rally of the new Bull Cycle.

A stablecoin is a type of cryptocurrency with a value that’s pegged to another less volatile asset. Most commonly, people refer to stablecoins as linked to a fiat currency, such as the U.S. dollar. Stablecoins can also have value Forex linked to precious metals or other cryptocurrencies. Whatever stablecoins are linked to, the effect is a less volatile cryptocurrency with greater potential to resemble the types of currencies people already use everyday.

Dogecoin (DOGE)

No other financial rewards are offered, the network is fee-free and allows for high scalability. The more active IOTA participants, the faster transactions are validated. Several cryptocurrencies are based on the technical standards of Bitcoin. They usually have a fixed supply and need to be mined through a process called Proof-of-Work.


Most engage with governance tokens after thoroughly dipping their toe in the more beginner-friendly aspects of crypto. Due to how new cryptocurrency is in general, the categories are ever-evolving. A cryptocurrency or digital cash that is independent of any other platform, which is used as an exchange of… While some users deem the term “altcoin” to be derogatory or deprecating, it is broadly held to be neutral in its usage. The term is not supposed to convey any positive or negative sentiment about the asset that is being referred to.

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