What is "altcoin" really?

In this article I will try to look at the definition and briefly explain the meaning of the altcoin word.

Altcoin - definition, meaning of the word

Altcoin is what we call every cryptocurrency except bitcoin.
Where did this distinction come from? Bitcoin was created in 2009 as the first cryptocurrency in the world. During the first years of its existence, few people have heard of Satoshi Nakamoto's idea and the blockchain technology behind bitcoin. At that time there was no other virtual currency meeting today's definition of cryptocurrency. So the term cryptocurrency meant the same as bitcoin.

The Beginning

Namecoin, created in 2011, is considered to be the first altcoin. Shortly afterwards, the famous Litecoin (LTC) was created as an improved version of bitcoin. Currently there are more than three thousand altcoins.

The distinction between altcoin and bitcoin is also used in stock market speculation. Often the price of most altcoins behaves similarly during certain bitcoin price movements. For example, when the price of bitcoin rises sharply, the price of altcoins can fall because of the movement of capital.

The most popular altcoins

Altcoin can be crypted in the form of a coin with its own blockchain or it can be a token using another coin's blockchain.

By multiplying the number of coins in circulation times the current price, the market capitalization of the given cryptographic coin is calculated. On the basis of the so-called market cap calculated in such a way, crypto-crime is ranked in a specific ranking.

Altcoin, through the increase or decrease of the market valuation, may decrease or advance in such a ranking. The cryptocurrency market is so dynamic that it is difficult to point to the most important altcoins. However, some of them have been at the forefront of market capitalization for many years. And these are:

Ethereum (ETH) - a blockchain that allows you to write intelligent contracts and issue your own tokens; the most commonly used network for the needs of ICO

XRP (XRP) - formerly Ripple, although the company cut off from the currency controlled by itself by changing its name; interbank payment system

Litecoin (LTC) - improved bitcoin, faster, with much lower transfer costs; bitcoin is called internet gold, litecoin is called silver;

Tether (USDT) - stable coin, i.e. token always costing USD 1; the project is controversial due to its centralized character, lack of reliable audits of crypto-coverage in dollars, as well as continuous printing of USDT;

Monero (XMR) - cryptocurenncy ensuring anonymity when transferring funds;

The full list of altcoins can be found in the most popular CoinMarketCap!