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About This Video

The word Altcoin has become more popular in recent years, as Bitcoin continues to grow and new cryptocurrencies are created every day. Many people want to know what Altcoin means, and the answer depends on who you ask! This article will help you understand the basics of what an Altcoin is, why they exist, and how they relate to Bitcoin. What is the difference between Bitcoin and Altcoins? Are they not both just cryptocurrencies? Well, yes and no. The term “Altcoins” contraction of the word, “Alternate coins,” meaning they are cryptocurrencies alternate to Bitcoins (BTC) or a variation of them. Any cryptocurrency other than Bitcoin is an Altcoin! They were essentially created when developers wanted to have features or improve the functionality of Bitcoins. They may share some similarities with BTC but also have some differences. For example, the consensus mechanism of validating transactions, and producing a block of some Altcoins is different, while others have low volatility which is often an issue with Bitcoins. Their price trajectory also always follows Bitcoin’s since they’re derived from it. However, seeing that new coin markets are developing and how mature crypto investing ecosystems are getting, it is deemed that the price movements of ATC might eventually get independent. To understand more about the difference between, Bitcoin vs. Altcoin, follow Cryptela’s lead!