Altcoins: what it is and how it differs from bitcoin

The progress of Internet technologies also affects the prospects for the development of the cryptocurrency market. Anyone who is registered in the system can become the owner of cryptocurrency. But first you need to understand the variety of existing cryptocurrencies.

What are altcoins?

Altcoins are any cryptocurrency that appeared after Bitcoin. They are very similar, have the same basic structure, but they also have their own peculiarities.

How they differ from Bitcoin

The process of creating new bitcoin cryptoblocks is very energy-intensive, and confirmation of transactions requires a certain amount of time. When creating altcoins, much less energy is required, so the confirmation of transactions is faster.

Advantages and disadvantages of altcoins compared to bitcoin

Advantages of altcoin:

1. altcoins are easier to mine because they require less energy;
2. lower transaction fees;
3. each altcoin is unique;
4. the price of various types of altcoins can range from $1 to almost $3000.

Disadvantages of this cryptocurrency:

1. Bitcoin remains the dominant cryptocurrency, so altcoins do not have enough influence, and the value of the coin depends on it;
2. unlike bitcoin, altcoins are not accepted everywhere as payment;
3. not all altcoins are considered decentralized.

Top 5 promising altcoins for 2023

Let's consider which coins have the most promising forecasts for investments and obtaining long-term income. Top 5 promising altcoins for 2023:

1. XRP is a cryptocurrency created by a company Ripple. Such financial institutions as Standard Chartered Bank and American Express have already concluded partnership agreements and are using campaign products. By market capitalization in 2022, altcoin XRP entered the top ten cryptocurrencies along with Bitcoin, Ethereum and others.
2. WBT is a token created by WhiteBIT, one of the largest European centralized exchanges of Ukrainian origin. The growth of WBT in price is facilitated by the fact that contracts of the ERC20, TRC20 standard have passed the Hacken audit. WBT is used in pairs with BTC, hryvnia, USDT for active trading.
3. The Graph (GRT) is a decentralized service for building applications on the Ethereum blockchain. The data stored in The Graph is securely protected, and the open code ensures the transparency of the service. The more developers will use The Graph and the more decentralized applications there will be, the faster the price of GRT will grow.
4. BNB is the official token of Binance, one of the world's largest centralized exchanges. The role of centralized exchanges, such as Binance, will continue to grow, so the price of the BNB altcoin will also grow. Tokens are burned quarterly, so the price of each BNB becomes larger over time.
5. Metacade (MCADE) is a new GameFi platform. GameFi players get a lot of earning opportunities. MCADE owners will be able to finance developers of GameFi projects by voting for the most promising game applications developed for the Metacade platform.

Risks and prospects of investing in altcoins

A successful investment requires a thorough analysis of the cryptocurrency market. Each altcoin has its own potential risks and benefits. Before investing, it is important to research and understand cryptocurrency so that you can answer exactly why you are buying this currency and supporting this particular project.

Investing in altcoins is the easiest and safest way to make a profit for beginners. The decision in which coins to invest should be based on your understanding of how reliable the chosen project is and how profitable it can be in the long term.