Alternative digital assets, such as a coin or token that is not Bitcoin, are referred to as “altcoins.” Since Bitcoin is the first cryptocurrency, all others are referred to as “alternative” or “alternative” currencies in this terminology. Also, read; Best altcoins to invest in 2023 Table of contents: • What are Altcoins? • What features do all altcoins have in common? • Bitcoin forks and cryptocurrencies based on Bitcoin • Ethereum and decentralized applications (DApps) • Can altcoins “die”? • What to consider before buying Altcoins • The Bottom Line What is an Altcoin? Quite often, digital assets that are technically referred to as “tokens” rather than coins are referred to as “altcoins” instead of coins. The ERC-20 tokens that are built on top of the Ethereum blockchain are the most well-known examples There have been more than 2,000 alternative cryptocurrencies introduced since the launch of Bitcoin in 2008. In fact, through a procedure called a “hard fork,” many of these altcoins were produced as modified versions of Bitcoin. Each alternative cryptocurrency has its unique functions despite certain similarities. The Proof of Work consensus algorithm is used in the majority of the alternative coins that split off from Bitcoin. Several cryptocurrencies are experimenting with different strategies for achieving agreement in dispersed blockchain networks, though. The most popular Proof of Work substitute is the Proof of Stake consensus algorithm, but there are also significant examples of Proof of Burn, Proof of Authority, and Delayed Proof of Work consensus algorithms. It is generally acknowledged that the name “altcoin” is neutral, despite the fact that some users think it is insulting or humiliating. The term is not intended to imply either a good or negative opinion of the asset being discussed. On the other side, the term “Shitcoin,” for example, carries a negative connotation and is often regarded as mocking. With the exception of Bitcoin, all of the more than 1,500 cryptocurrencies listed by Coinmarketcap in April 2018 are classified as “altcoins.” The top altcoins on Coinmarketcap in August 2019 according to market capitalization were Ethereum, Ripple, Bitcoin Cash, Litecoin, Tether, Binance Coin, EOS, Bitcoin SV, Stellar, Cardano, and Monero, sorted in descending order. Altcoins can be quite new. This implies that several altcoins that were among the top 10 in terms of market capitalization in the early days of cryptocurrencies are either no longer in existence or are less common than they once were. An essential statistic for determining a cryptocurrency’s market worth is its “market capitalization” or “market cap.” This amount is calculated by multiplying the price of a cryptocurrency at the moment by the total number of coins available on the market (known as the circulating supply).   What features do all altcoins have in common? Bitcoin, Ether, and other cryptocurrencies can be used for payments on different platforms outside of their native environment. Many alternative coins only provide distinct unique features, such as various distribution strategies or mining algorithms, and are not all that, unlike Bitcoin. Nonetheless, the majority of altcoins also perform the functions of cryptocurrencies, namely acting as a form of decentralized peer-to-peer payment processing and a store of value. They might provide faster transactions or more secrecy compared to other coins. Once more, certain altcoins were created for extremely specific use cases. They depart from the peer-to-peer payment network model that was the foundation of Bitcoin. Altcoins are digital assets that are not Bitcoin, such as ERC-20 tokens built on top of the Ethereum blockchain. With the exception of Bitcoin, all of the more than 1,500 cryptocurrencies listed by Coinmarketcap in April 2018 are classified as “altcoins”. Market capitalization is calculated by multiplying the price of a cryptocurrency at the moment by the total number of coins available on the market.     Bitcoin forks and cryptocurrencies based on Bitcoin The technical foundation of Bitcoin serves as the basis for a number of other cryptocurrencies. They often have a fixed supply and must be mined using a technique known as Proof-of-Work. Litecoin is the most well-known of these cryptocurrencies. Namecoin was the first alternative cryptocurrency to split from Bitcoin. In April 2011, Namecoin was released and is based on the Bitcoin source code. Like Bitcoin, it has a 21,000,000-coin maximum. According to the creators of the project, Namecoin is “an experimental open-source solution that promotes decentralization, security, censorship resistance, privacy, and speed of some components of the internet infrastructure, such as DNS and identities.”   Litecoin Litecoin was developed as an alternative currency to serve as the “silver” to Bitcoin’s “gold.” Whereas it takes the Bitcoin network little over 10 minutes on average to confirm a transaction, the Litecoin network only needs roughly 2.5 minutes. Litecoin originally aimed to make mining more accessible to the typical user. Scrypt is a cryptographic technique that Litecoin uses that is fundamentally distinct from Bitcoin.     Ethereum and decentralized applications (DApps) The blockchain-based cryptocurrency Ether, which is used by Ethereum, is now the second-largest cryptocurrency by market capitalization. In contrast to Bitcoin, Ethereum’s goal is to support peer-to-peer transactions as well as act as a kind of operating system for decentralized apps (DApps) that are free from downtime, fraud, or any other type of third-party interference. As a result, machines in the decentralized Ethereum network serve two purposes: they develop smart contracts and they record transactions. DApps are developed on the Ethereum blockchain and have the benefit of decentralized computation. For using the network’s computing power, developers must pay in ether. The Ethereum network is not governed by a single organization or authority, and its crucial parts are dispersed. Therefore, it is virtually hard to attack the network, giving clients access to more dependable and secure apps. The technical specification for smart contracts used to implement tokens on the Ethereum blockchain is called ERC-20.   Dogecoin – the fun cryptocurrency On a lighter side, many cryptocurrencies have been created with the purpose of essentially mocking Bitcoin. In this regard, Dogecoin stands out as the most notable alternative currency.