What are the Altcoins?

Altcoin is a term used in the crypto community to refer to all currencies other than Bitcoin. These are made using forks of the open source Bitcoin.

Each altcoin has its blockchain and its P2P network and uses its mining algorithm such as the classic Prof of Work or the recently applied Prof to Stake.

The altcoins find their value in supply and demand, so we can find them in the financial markets.

The point is that the vast majority of altcoins we cannot use them to make a transaction or acquire any good or service unless we convert them into Bitcoin or a Fiat currency.

What are the advantages and disadvantages of Altcoins?

In their advantages we can find:

• Decentralization:

These currencies do not depend on any kind of third-party institution for their realization and distribution.

• Utility:

Each altcoin project is realized with different bases and missions which help to bring more to its value.

• Innovation:

With the experience of what has worked and what has not worked in bitcoin, altcoins have from where to find ways to start strong and with functionalities and specifications that contribute to the community.

On their disadvantages we have that:

• Liquidity:

All altcoins have a lower value than bitcoin and many do not leave the pennies on the dollar, so we have to be very careful.

• Massive failures:

There are thousands and thousands of altcoins that we have not even heard of and surely will not hear of since there are very few projects that usually sound or are within the top of cryptocurrencies.

In The Blue Manakin, we will always explain the most popular terms in the world of cryptocurrencies, so you can check our glossary if at any time you find yourself in doubt of the meaning of some words that you can find when browsing throughout this community.