Among over 15,000 types of cryptocurrencies in the market, Bitcoin takes a bigger piece of the pie — 40% of the total cryptocurrency market cap. Anyway, the crypto universe has got new coins which are now referred to as “altcoins.”
What are altcoins? Why pay attention to them? Which altcoins to buy nowadays and especially in the unstable 2022 year? Stay tuned — here, you’ll get the answer!
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Altcoins: What’s Behind?
To put it simply, Altcoin is crypto different from Bitcoin (“alternative” + “coin”). The first one was launched in 2011 and today, according to CoinMarketCap, there are over 15,000 coins in the crypto ecosystem.
Basically, you can separate altcoins based on their functions and consensus mechanisms.
Take a look:
Stablecoins
Crypto is incredibly volatile, so then? Stablecoins! They have been created to make crypto stable since they are pegged to real-world assets such as USD. Examples of stablecoins include Tether (USDT), USD Coin (USDC), Binance USD (BUSD), etc.
Meme Coins
The crypto space is full of…..memes! Well, how about meme coins? That’s not a joke! These cryptocurrencies were inspired by memes on social media. Everybody knows Dogecoin — the first-ever meme coin, which was inspired by a popular Doge meme of the Shiba Inu in 2013. The renowned examples of 2021 are Shiba Inu (SHIB), Kishu Inu (KISHU), and Hoge Finance (HOGE).
Utility Tokens
A more serious type is utility tokens which are used to access services within a network. They serve to pay for services, fees, or even redeem rewards. Catch the examples: Siacoin (SIA), District0x (DNT), Chainlink (LINK).
Security Tokens
These kinds of altcoins are comparable to securities that are traded on exchange platforms. They often promise equity in the form of dividend payouts or ownership.
Mining-Based Altcoins
These altcoins employ the Proof-of-Work consensus algorithm and that’s how they are mined/created. Some noteworthy mining-based altcoins include Litecoin (LTC), Monero (XMR), Zcash (ZEC), among others.
Pre-Mined Altcoins
This type of altcoins is not mined. Instead, they are distributed before they are ever listed on any cryptocurrency exchange. A perfect example of a pre-mined altcoin is Ripple (XRP).
Alright! Finally, we’ve covered all types of altcoins, however, we bet there will even be more in the nearest future. Don’t you think so?
Now, you’re ready to learn deeper! Stay tuned and keep reading following this link.
Read: Which Altcoins to Buy in 2022?
Discover the trends of 2022 and grab the strategy on profitable and wise crypto investing! Explore and make a profit!
Read: Best Crypto Exchange for Altcoins
To avoid losses and keep a profit, you need to trade on a proper crypto exchange. How to choose one? Discover here!
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