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on March 8, 2022
Undoubtedly, the launch of Bitcoin (BTC) in 2009 changed the global financial system. However, extreme fluctuations in its value have resulted in the emergence of Altcoins. Today, there are around 17968 digital currencies in the world. Moreover, these virtual assets are providing more returns to retail and institutional investors. Let us explore more Altcoin investing.
What is the meaning of Altcoin development?
It refers to the creation of virtual assets on various blockchain networks. Generally, these digital assets operate in the form of a Peer-to-Peer (P2P) network. Investors can buy, sell, stake, and exchange them 24x7x365. Besides that, they receive benefits like low trading fees, instant processing of transactions, and protection against market crashes. With the value of Bitcoin often falling due to geopolitical tensions, it is apt for Altcoin development.
Know the various types of Altcoins
Mining - Bitcoin (BTC) has been utilizing the Proof of Work (PoW) consensus mechanism for a long time. Ethereum, the second largest cryptocurrency in the world, strategically made a shift from the Proof of Work (PoW) to the Proof of Stake (PoS) consensus mechanism. This offers several benefits like multi-layer security measures, greater energy efficiency, and high scalability.
Stablecoins - USD Coin (USDC), MakerDAO (Dai), and Tether (USDT) are the popular types of stablecoins. Investors can utilize these stablecoins as a medium of exchange. Generally, these stablecoins are of various types, commodity-backed, fiat-collateralized, crypto-backed, and algorithmic. Generally, investors can purchase these stablecoins from popular crypto exchanges and Decentralized Finance (DeFi) platforms.
Meme Coins - Dogecoin, Shiba Inu, Catecoin are the famous meme coins. Created originally as a joke, the trading volume and market capitalization of meme coins are influenced heavily by social media buzz and activity on the Internet. Meme coins also offer advantages like unlimited supply and high growth if there is a rise in its price.
Wrapping Up
While Bitcoin (BTC) continues to be the world’s first and largest cryptocurrency in the world, Altcoins are fast catching up. Wish to be the leader of the decentralized financial system? Reach out to a crypto asset creation enterprise for custom Altcoin development
Posted in: Business, Technology