With the development of the era into the digital era, the types of investment instruments are now increasingly growing and popular. Are you familiar with the word bitcoin? If you’ve ever invested in crypto, you know bitcoin. However, in crypto investment, there is not only bitcoin. Have you ever heard of the term altcoin?
The altcoin is a combination of two words, namely: alternative and coin. As the name implies, altcoins are crypto assets other than bitcoin that is intended as an alternative choice. Therefore, surely altcoins must have an advantage in order to compete with bitcoin.
This altcoin was first launched in the year two thousand and eleven, with the aim of improving aspects of bitcoin, specifically transaction speed, energy efficiency, and becoming a better alternative to bitcoin.
As of August two thousand two one, according to Coinmarketcap, there are more than eight thousand altcoins on the market, with ethereum and cardano being the largest altcoins by market cap. Among the many altcoins, there are several that have something in common. However, each of these altcoins has different functions. This can be seen in popular types of altcoins such as mining-based crypto assets, stablecoins, governance tokens, and many more.
You can buy altcoins on crypto exchanges like Indodax. The number of altcoin options that you can buy depends on what altcoins have been registered on the crypto exchange. At Indodax, there are more than two hundred types of coins that you can choose from, of course after you do some research.
There are also other ways to get altcoins, you can use the mining method or mining. With that method, you only need to solve a problem algorithm which is usually referred to as a proof-of-work, to get a reward in the form of a crypto asset coin. The most popular mining-based altcoin is Ethereum which also topped the market in early 2020.
There’s more, these crypto assets are also part of the altcoins. If you’ve ever heard of a coin whose volatility is stable. These altcoins are called stablecoins because their volatility and price fluctuations are more stable when compared to other crypto assets. This is because stablecoins are pegged to other investment instruments such as Rupiah, US dollars or gold // USD Tether is an example of the most famous stablecoin in the world.