It is no secret that the commitment around cryptocurrency has been twofold, and this has…
What you need to know about altcoins
If you have ever read about cryptocurrency, you have probably come across expressions like “altcoins”. It can be difficult to orientate oneself in a jungle of expressions, especially when it comes to advanced technology such as cryptocurrency.
In this guide we will explain you a little more about altcoins. Find out what such coins are every day and how you can invest in them yourself!
What is an altcoin?
An altcoin is simply an “alternative coin”, or as we would say in Norwegian – an alternative coin. These are alternatives to well-established cryptocurrencies such as Bitcoin.
Bitcoin is perceived by many as the “standard” in cryptocurrency. With altcoin, we are talking about alternative cryptocurrencies that can be used instead of Bitcoin. In other words, alternative coins can be described as all forms of cryptocurrency that are not Bitcoin.
An altcoin shares many features with Bitcoin, but there are also some factors that set them apart. For example, many altcoins use technology other than Bitcoin when it comes to validating transactions and other things.
Altcoins may also have other mechanics such as smart contracts and other volatility than Bitcoin. The differences can be many, but at the same time they all fall into the category of «cryptocurrency».
Different types of altcoins
There are a total of around 2,000 different forms of cryptocurrency, which means that there are also around 2,000 altcoins. This is because all non-Bitcoin cryptocurrencies are by definition an altcoin.
There are therefore countless varieties to choose from. If you have decided that Bitcoin is not for you – which altcoin should you choose?
Altcoins based on mining
Altcoins based on mining are produced by means of mining or “digging”, in the same way as, for example, Bitcoin. Most variants of mining-based altcoins use so-called PoW or Proof-of-Work .
PoW is a method that involves new cryptocurrency being generated by computers solving advanced problems, which in turn allows one to create blocks for the blockchain. There are many examples of altcoins that are created through mining.[mining]
Almost all the most popular forms of altcoins are based on mining. Here are some of them:
Altcoins can also be stack coins, which are a more stable form of cryptocurrency. This means that the cryptocurrency has lower volatility, and that the value does not fluctuate as much.
If you have a desire to invest in cryptocurrencies that are not as volatile as Bitcoin, altcoins like DAO are a good alternative. It is still a cryptocurrency, but the value remains stable and follows, for example, the exchange rate of the US dollar.
Tokens are another form of cryptocurrency, and we like to divide tokens into security tokens and utility tokens. Ethereum is an altcoin that can be described as a form of utility token. It has a useful function in the total blockchain, but lacks intrinsic value.
Bitcoin is also a form of utility token. When it comes to security tokens, we are talking about currency with an underlying intrinsic value. This can be, for example, art or the like.
Should you invest in altcoins?
The market for altcoins – or cryptocurrency in general – is popular to invest in. Many people want to buy altcoins while they have low value, and then sell them when the value has increased. Then you can be left with a profit.
Altcoins can be a good investment, but it can also be the opposite. Remember that all altcoins except stablecoins have very high volatility. This means that the value can fluctuate enormously in a short time, which makes the investment risky.
This is not to say that you should not invest in altcoins. As long as you invest an amount that does not go far beyond your finances should you lose, the investment can be exciting and educational.
Remember to familiarize yourself with the price of the altcoins you are considering buying.
How to invest in altcoins?
It is easy to invest in altcoins. You can find many different variants at various crypto exchanges. When you first register with a crypto exchange, you may want to choose a page that is registered in Finanstilsynet’s register, such as[eafl id=”2945″ name=”Etoro” text=”eToro”] or MiraiEx / Firi.
It is very easy to get started with altcoin investing. You only need to register a user account with the relevant exchange first, and then deposit money. Then you can pick and choose between altcoins in a number of variants.[main]
You can check the exchange rate of various altcoins and the development of the value of the currency in question in recent months. You will be able to see graphs showing the value fluctuations for each altcoin. That way, you can easily choose the most favorable investment possible.
At eToro and Firi, you can invest in altcoins such as Ethereum, XRP (Ripple), Litecoin, Dash, Cardano, IOTA, Stellar, NEO, EOS, TRON, Zcash, Tezos and Binance Coin. Also check out variants such as Uniswap, Chainlink, Dogecoin and Aave.
Find the altcoins you want to invest in
Many people only think of Bitcoin when they hear the word “cryptocurrency”. However, there are many good alternatives, also known as “alternative coins” or altcoins. Altcoins are simply all forms of crypto that are not Bitcoin.
Among the most well-known altcoins variants we can mention Ethereum and DAO. If you are looking for an altcoin with a more stable value than Bitcoin, a stablecoin may be a good choice.
You can also find tokens and mining-based cryptocurrencies. The options are many, and there is certainly an altcoin out there that is right for you.
Hva er best av Bitcoin og altcoins?
Det kommer helt an på hvilke behov og ønsker du har. Bitcoin er et kjent og trygt alternativ, men du kan potensielt finne altcoins med bedre volatilitet enn Bitcoin.
Hvilke altcoins finnes?
Det finnes mange ulike altcoins, siden altcoins er all kryptovaluta som ikke er utstedt av Bitcoin. Vi kan blant annet nevne Omisego (OMG), ether (ETH) og Litecoin (LTC).
Hva er kryptovaluta?
Kryptovaluta er digitale valutasorter som er desentraliserte, altså ikke tilknyttet banker eller andre tredjeparter. Mange av variantene er basert på blokkjedeteknologi.