Living in the 21st century, you must be at least a little aware of cryptocurrencies. If you are not aware of the term, cryptocurrencies are virtual currency. It also interests people who want to make investments. The leading and oldest cryptocurrency is Bitcoins. These virtual coins are worth the Thousands of dollars and are safer to use compared to physical assets.
The term Altcoin already gives you a clear idea of the word’s meaning. Altcoins are the alternative cryptocurrencies other than the oldest and the most successful Bitcoin. Of course, most investors would be well accustomed with Bitcoin as it is the oldest virtual assets in the entire world. Still, many people in today’s world indeed prefer dealing in alternative cryptocurrencies like Altcoins!
In the following article, you will find out the knits and bits of Altcoins, their values, their types, etc. Keep it a quick read now!
Types of Altcoins
It is easy to name a lot of Altcoins at present as there are over 5000 varieties of alternative cryptocurrencies circulating in today’s world. However, what you need to know is how one is different from the other and evaluated in different categories. The following are the various types of alternative cryptocurrencies depending on their functionalities:
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Mining-based:
As the name suggests, the mining-based alternative cryptocurrencies are the ones that are generated by mining. A bit confusing, right? Before you could ask, you do not have to go underground to dig out these Altcoins! People who master curving cryptocurrencies in the 21st century solve complex problems and do a lot of brainwork to create blocks of cryptocurrencies. That is why these Altcoins fall under the category of mining-based cryptos. A few examples of mining-based Altcoins are Litecoin and Monero.
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Stablecoins:
If you wonder what stablecoins are and whether they stay in horse stables, you are on the right page to get all the answers to your questions. If you have invested previously in Bitcoins or any other cryptocurrencies, you would know that the return factors mark the volatility of the cryptocurrencies. When you use stablecoins, you would have to deal with market value fluctuations in a narrow range. The system of stablecoin marks their values by keeping a certain number of holders in the basket of goods like fiat currencies and precious metals, which would come to action during the fall or times of problems in the crypto market. A few examples are Tether’s USDT, USDC, and even DAI.
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Security Tokens:
The Altcoins belonging to the category of security tokens come with more security and safety when it comes to your online assets. The best part of making sound investments in Altcoins is the crypto exchanges that resembles the traditional stock. The investor gets equity in the form of ownership of the Altcoin. If you do not want the ownership, you can also opt for the dividend payout.
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Meme coins:
Being a part of the modern world, you must be well aware of the concept of memes. As the name suggests, meme coin is a category of Altcoins that earns profit by making everyone laugh and sharing their speculation on specific topics by sharing a crypto meme. Naturally, the more people reach the crypto meme, the more the crypto influencer earns. But the above concept can make you a massive profit in the short term. However, it is not meant to get you profits for the long term. A few examples are the Shiba Inu crypto memes and the TESLA’s crypto tweets.
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Utility tokens:
Utility tokens are different from most of the other Altcoins present in today’s world. People worldwide love these tokens for various purposes, mainly for serving their pay buddy’s role. Utility tokens do not provide any ownership or dividend to the investors, but their boundaries are limited. You can use utility tokens to pay off bills, redeem amounts, etc. The problem is that your utility token can only serve you within its specific reach. Filecoin could be a fine example of utility token.s
Conclusion
Digital currency is one of the rare platforms that allows you to make virtual investments with your Altcoin assets securely. So what keeps you waiting? Go and make your investment today!
