[Bybit: Virtual currency, NFT] What is an altcoin? Difference from Bitcoin

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When trading virtual currencies, terms such as Bitcoin and Altcoin will often appear. The word altcoin is a term that you should definitely know, so be sure to remember it. We will also introduce promising altcoins.

What is Altcoin?

Altcoin is a general term for virtual currencies that appeared after Bitcoin. The basic structure of most altcoins is based on Bitcoin, but altcoins have expanded the market size considerably and are gaining momentum to surpass Bitcoin. However, on the other hand, there are many grass coins, so it is also true that there are many problems with reliability and safety.

Altcoin features and differences from Bitcoin

What are the features of altcoins and how they differ from Bitcoin?

variety

Bitcoin is a coin that everyone knows. However, it is said that there are thousands of altcoins. It has a wide range of uses. However, although there are a large number of altcoins, the problem is that many exchanges do not handle them. When it comes to minor altcoins with a low market capitalization, it may only be handled by some exchanges. On the other hand, Bitcoin is always handled on any exchange in the world.

high volatility

Compared to legal currency, virtual currency is not legally developed, so there are many frauds and high liquidity, so volatility is high. Bitcoin tends to gradually become less volatile. Because it is very valuable. On the other hand, altcoins can suddenly crash, so it is very dangerous.

Difference in usage

Bitcoin will become a payment system. On the other hand, altcoins have different uses, and each has different characteristics depending on the purpose of development. There are various altcoins that are intended for use in specialized areas such as NFT.

Promising altcoin

Promising altcoins have the following features.

market capitalization

Promising altcoins have a very high market capitalization. Market capitalization is an indicator of how large an altcoin is traded. The formula for calculating market capitalization is “number of issues x price”.

Developmental status

No matter how great the purpose and use of the altcoin is, if the development situation is not good, the value will plummet. It is very important to know whether the development situation is going well and whether development can proceed in the long term.

corporate investment

Altcoins need development. Need for development means money. If there is a company or organization that will invest money, the altcoin is safe. It is expected that development will be difficult for altcoins that do not catch the eye of any company because funds cannot be collected.

Handling exchange

It is important how many exchanges handle the altcoin. No matter how good an altcoin is, it has little value without a trading environment. The more you deal with the world’s major exchanges such as Binance, Kraken, and Coinbase, the more you can rest assured.

5 recommended altcoins

It is said that the following five altcoins are recommended, and they are coins that are said to be handled by any exchange in the world.

ETH

Ethereum is the second largest altcoin by market capitalization after Bitcoin. It is the most major virtual currency and is actively traded. It is also a decentralized application platform. And unlike Bitcoin, he is also a big feature that there is no limit to the number of issuance limit.

XRP

Ripple is also one of the major altcoins with a market capitalization of over 3 trillion yen. It is very popular because it boasts a remittance processing speed that is superior to Bitcoin. And because Ripple specializes in international remittances, it is a very highly rated coin all over the world.

ADA

Adacoin is a coin proposed by a former Ethereum developer. I feel very safe as the security is very strong. It is also known as an eco-friendly coin because it consumes less power during development and use.

ENJ

ENJ is known as an NFT coin that has become very popular in recent years. ENJ has the advantage of being able to create and sell NFTs without specialized knowledge. It is highly recommended because the price is expected to rise in proportion to the excitement of NFT.

MATIC

Polygon is said to be an enhanced version of Ethereum by connecting its own blockchain with Ethereum’s blockchain. It is a coin that is attracting a lot of attention because it can improve transaction speed and reduce costs.

Open an account for free

Bybit handles all the above coins. If you are interested, please open an account. You can open an account for free.

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