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What Are Altcoins? A Guide For Investors

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A beginner's guide to altcoins: discover the diverse world of cryptocurrencies beyond Bitcoin and their risks and potential.
Altcoins, or alternative cryptocurrencies, are any digital currencies other than Bitcoin. The term encompasses a wide variety of cryptocurrencies that have emerged since Bitcoin's inception, each with unique features, purposes, and underlying technologies. These include well-known names like Ethereum, which introduced smart contracts, Ripple (XRP) aimed at facilitating fast and cost-effective international money transfers, and Litecoin, which offers faster transaction times and a different hashing algorithm. Altcoins often aim to address perceived limitations of Bitcoin, such as scalability, transaction speed, privacy, or to introduce new functionalities like decentralized finance (DeFi) platforms, non-fungible tokens (NFTs), and more. They can be created through various consensus mechanisms like Proof of Work (PoW), Proof of Stake (PoS), or others, and their value can be highly speculative, often driven by market trends, technological innovation, or community support. The altcoin market is diverse, with thousands of different cryptocurrencies, each vying for adoption and utility in the burgeoning blockchain ecosystem.

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/digital-assets/article/what-are-altcoins/ ]