What are altcoins? The word “altcoin” derives from “alternative” and “coin”. Altcoins refer to all alternative currencies to . Altcoins are cryptocurrencies that share characteristics with bitcoin (BTC). For example, bitcoin and altcoins have a similar basic framework. Altcoins also work as peer-to-peer (P2P) systems and share code, much like bitcoin.
Of course, there are also stark differences between bitcoin and altcoins. One of them is the consensus mechanism that these altcoins use to validate transactions or produce blocks. While bitcoin uses the proof-of-work (PoW) consensus mechanism, altcoins typically use proof-of-stake (PoS). There are different categories of altcoins, which can best be defined by their consensus mechanisms and unique functionalities.
- Cryptocurrency Staking: How to Choose the Best Coins to Stake for Passive Income
These are the most common types of altcoins:
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
es.investing.com