What are Altcoins?  Find out the top 5 most valuable Altcoins

What are Altcoins? Find out the top 5 most valuable Altcoins

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Currently, the world currency market is still dominated by Bitcoin with many many price records. However, Bitcoin’s Dominance index compared to Altcoins is getting shorter and shorter. Then What are Altcoins? And which Altcoins are the most valuable today? Makemoney will answer this question for you!

What are Altcoins?

Altcoin is a combination of two words Alt and Coin. In this case, Alt is understood as an alternative form and Coin means money. When combined, Altcoin means an alternative to the currency or can also be understood as the currency to be used as the digital currency Bitcoin.

Altcoins are digital currencies that are used as an alternative to Bitcoin

Simply put, Altcoins are digital currencies that were born after Bitcoin. Most are encrypted from Bitcoin and each type of Altcoin will be processed and used for many different purposes.

Top 5 Most Valuable Altcoins Today

Ethereum – ETH

Ethereum is the second most valuable digital currency after Bitcoin with a market capitalization of $21 billion. As an alternative to Bitcoin, Ethereum is still quite profitable in the digital currency market.

Advantages of Ethereum:

  • Ethereum is highly secure, synchronized with many different industries
  • Ethereum has the second largest market capitalization in the world so it is also the best Altcoin to invest in
  • Ethereum takes components like DApps, DAOs and smart contracts on Blockchain and turns it into useful and flexible Blockchains.
Ethereum

Disadvantages of Ethereum:

  • The scalability of this digital currency is limited, slow transaction times affect its operation and status.
  • Vulnerable to the negative effects of fierce competition that is increasing in the digital currency market.

Litecoin – LTC

Litecoin is a clone in one of the forks of Bitcoin. Litecoin can improve on techniques like SegWit.

Litecoin

Advantages of Litecoin

  • The transaction speed of this digital currency is 4 times faster than Bitcoin
  • The stability of Litecoin is relative to other Altcoins because it is based on the Scrypt algorithm
  • Litecoin transaction costs are quite low.

Disadvantages of Litecoin

  • Litecoin investment can be risky because there is no regulatory authority
  • Bitcoin has accepted the SegWit update, which takes away one of Litecoin’s unique selling points.

Bitcoin Cash – BCH

Bitcoin Cash is another permanent fork of Bitcoin. If you don’t like SegWit, you can try investing in Bitcoin Cash and the market cap of this digital currency is $7.7 billion.

Bitcoin Cash

Advantages of BCH

  • Bitcoin Cash transaction cost is $0.0019, initial transaction fee of $0.2 is relatively lower than Bitcoin
  • Faster transfer time than Bitcoin so no need to wait too long for transaction verification
  • BCH has its Blockchain technology and implemented an improved block size of 8MB instead of Bitcoin’s 1MB block size.

Disadvantages of BCH

  • Difficult to distinguish between Bitcoin Cash and Bitcoin
  • Bitcoin Cash has quite a few trading pairs, so investors will be restricted from trading
  • The rate of compatibility with industries can affect its growth rate in the crypto market.

Ripple – XRP

Ripple is both a platform for streamlining international payments and an Altcoin. In terms of market capitalization, Ripple is in third place, behind Bitcoin and Ethereum with a combined capital of $18 billion.

Ripple

Advantages of XRP

  • Ripple is highly secure, possessing a number of features as opposed to traditional banking services
  • Ripple’s adoption rate is quite high due to its high traceability as well as instant transactions.

Disadvantages of XRP

  • The developer decides when and how much XRP is released
  • XRP Vulnerable to Access Token Attacks
  • The compatibility ratio of XRP is quite low despite the assurance of confidence from investors and large financial institutions.

Binance Coin – BNB

By trading volume, Binance is the largest cryptocurrency exchange today. This exchange has created an altcoin called Binance Coin – BNB as a means of paying fees on the platform.

Binance Coin

Advantages of BNB:

  • BNB offers extremely attractive prices in terms of transactions, when trading BNB on the Binance exchange, there will be no other costs.
  • Option to use BNB when trading to receive other digital currencies, helping to reduce transaction costs
  • The value of Binance has increased significantly in recent times.

Disadvantages of Binance:

  • Binance Coin is vulnerable to negative effects that upset the cash flow
  • The annual cost-cutting makes Binance Coin obsolete in the eyes of investors if it fails to prove its value.

Altcoin is a digital currency issued to replace Bitcoin and currently on the market there are many potential Altcoins that are worth your investment. If you have any questions, you can contact the phone number 0944.31.9963 to be Makemoney support!

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