What are Altcoins:
An altcoin is a cryptocurrency, or virtual currency, that works similarly to Bitcoin. It is an alternative, generally any virtual currency other than Bitcoin. Each altcoin operates according to its own rules.
What is Bitcoin:
Bitcoin is a digital currency or cryptocurrency, that was created in 2009. Bitcoins can be used as a trade for goods and services with vendors that accept Bitcoin as a payment method instead of fiat money (paper money).
Examples of Altcoins:
Rocket vault finance
Bitcoin vs. Altcoin:
Bitcoin is the “original” cryptocurrency and ultimately responsible for the invention of blockchain technology. The first altcoins were released in 2011. Bitcoin has long been the king of the cryptocurrency market. Altcoins are generally defined as “everything else,” meaning any virtual currency that isn’t a Bitcoin.
Bitcoins are a lot safer than altcoins, as altcoins are usually more volatile and risky. They are not as secure as Bitcoin and do not have as much liquidity. Due to a lower hash rate and lower security, altcoins can be easily attacked. They may be able to make you more money than Bitcoin but have a higher risk.
Bitcoin is currently the largest cryptocurrency currency in supply and has the best support, but does not necessarily mean altcoins are not worth it. You should try to diversify your portfolio but be aware of your risk tolerance. Before you buy Bitcoin or altcoin, do some comprehensive research.
Written by Anna Li