Altcoin or alt-coin is an alternative coin from English. Translating directly into Polish is an alternative coin, though coin and token are terms referring to individuals virtual currencies, or cryptocurrency. Therefore, the implication is not so much about the coin, but about an alternative crypto currency for Bitcoin.
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Altcoin - definition, meaning of the word
Altcoin is called every cryptocurrency, except bitcoin.
Where did this distinction come from? Bitcoin was established in 2009 year as the first cryptocurrency in the world. During the first years of its existence, few people heard about the idea of Satoshi Nakamoto and about blockchain technologywho is behind bitcoin. At that time, there was no other virtual currency that met today's definition of cryptocurrencies. Thus, the term cryptocurrency meant the same as bitcoin.
A few years later, new cryptocurrencies began to emerge, having technological alternatives to Bitcoin. The first altcoin is considered Namecoina created in 2011. Soon after it arose the famous Litecoin (LTC) as improved version of bitcoin. Currently, it exists above three thousand altcoins.
The altcoin-bitcoin distinction also applies to stock market speculation. Often the price of most altcoins behaves similarly, during the specified price movements of the bitcoin. For example, when the price of bitcoin increases sharply, the prices of altcoins may decline, due to the flow of capital.
The most popular altcoins
Altcoin can be cryptocurrency in the form of a coin with its own blockchain and/ or it could be tokenusing blockchainu another coin.
Multiplying the number of coins in circulation times the current price market capitalization is calculated given cryptocurrency. On the basis of the so-called The market cap is cryptocurrency in a specific ranking.
Altcoin, by increasing or decreasing the market valuation, may fall or be promoted in such a ranking. The cryptocurrency market is so dynamic that it is difficult to point the most important altcoins. However, some of them have been in the forefront in terms of market capitalization for many years. And these are:
XRP (XRP) - formerly Ripple, although the company cut off the cryptocurrency it controls by changing its name; interbank payment system
Litecoin (LTC) - improved bitcoin, running faster, with much lower transfer costs; bitcoin is called internet gold, litecoin is silver;
Tether (USDT) - stable coin, i.e. a token that always costs USD 1; controversial project due to its centralized nature, lack of reliable audits of cryptocurrency coverage in dollars, as well as continuous reprinting of USDT;
Monero (XMR) - a cryptocurrency that ensures anonymity when sending funds;