Bitcoin is the king of cryptocurrencies, due to its early inception and higher market capitalization. Bitcoin leads the cryptocurrency locomotive, whether up or down. Any cryptocurrency other than Bitcoin is an alternative cryptocurrency.
Rapidly, cryptocurrencies are becoming valuable currencies in business transactions. Bitcoin and altcoins are used by large and small businesses, individuals and even governments. Some large companies even pay employees' salaries in cryptocurrency.
However, people are still confused when it comes to differentiating between Bitcoin and altcoins. Due to the huge demand for cryptocurrencies, investors have to invest their money in buying multiple currencies and diversifying the portfolio.
What are altcoins (ALTS)?
In the crypto market, every encrypted digital currency has a purpose and a goal that it is trying to achieve, some of which are similar and some are different. The variance in cryptocurrencies attracts investors to buy multiple altcoins that are different from Bitcoin. Currently more than 12,000 altcoins have been created to expand the cryptocurrency trading market in the world. Competitors are trying to carve out a niche for themselves in the big altcoins like Ethereum, Litecoin, and so on.
Ethereum is programmed differently from Bitcoin. It has equipped its network with a system of smart contracts which are a kind of code and algorithms that are activated if all preconditions are matched or met for termination. Bitcoin was the first cryptocurrency to appear, followed by other altcoins. The significant rise in the prices of Bitcoin and Ethereum proves the growing potential to boost the market with new cryptocurrencies in order to expand and take a chance on a piece of the big pie. Increasing daily dollar investment to buy bitcoins. Currently, experts predict that Bitcoin will soon reach $50,000 or more.
The most popular altcoins:
Ethereum and Cardano:
Comparatively speaking, Ethereum and Cardano ADA cryptocurrencies are competing to take over the world's main cryptocurrency. Ethereum is the favourite, which many analysts have talked about, that it could one day take the place of Bitcoin. While Cardano is the third largest cryptocurrency with a market capitalization of $73 billion.
Bitcoin gained more importance after the entry of "Tesla", but the electric car maker announced that it would stop adopting bitcoin as a means of payment for environmental problems, according to it. This gave better luck to alternative digital currencies that adopt a different mechanism of action than Bitcoin.
Chainlink:
Like other cryptocurrencies, "Chainlink" isn't much of a household name outside the crypto arena. However, recent updates from newspapers and financial websites on the Internet are attracting investors' attention. Chainlink ranks below Ethereum and Cardano but offers revolutionary solutions for blockchain networks. Some experts assume that the "Chainlink" digital currency will have a future, and its value will rise, but this remains just an assumption and speculation that may be right or wrong.
Dogecoin
One of the famous altcoins, thanks to Tesla CEO Elon Musk praising it. Where he praised it, considering it the currency of the future, and also praised the speed of its transactions and its low fees, but the disturbing thing about it is that its price movement depends mostly on the tweets of "Elon Musk".
AVAX:
Some observers of the crypto market believe that the AVAX digital currency will be an opportunity for those who missed the opportunity for Ethereum. Knowing that this alternative digital currency has a limited quantity that does not exceed 720 million units, and it is worth noting that its current price is at its peak, as this currency increased by 2500% this year.
There is no risk for Bitcoin even with the presence of altcoins:
Bitcoin is never in conflict with Ethereum, Litecoin or other altcoins. As Bitcoin has become the largest unbreakable network distributed across the world, it can even be said that it has become a brand and business leaders love to invest in it. Altcoins will not cause any problem if bitcoin grows.
Many people believe that altcoins will be responsible for inflation and the bursting of the crypto market bubble, putting Bitcoin buyers in an uncomfortable position. But this is not true, as Bitcoin is flying out of the flock and is always considered the first currency adopted by institutions and governments.
Bitcoin and alternative digital currencies complement each other. Bitcoin created this young arena, and alternative digital currencies with its projects complemented its shortcomings.
For investors, alternative digital currencies provide an opportunity to diversify the investment portfolio, especially projects that have proven themselves, whether in terms of seniority or seriousness in development and achieving the set goals.
We recommend that you read well about the currency project before investing and entering financially into the currency, and stay away from new cryptocurrencies or those that are marketed by paid people, and you can learn more about digital currencies on the digital currency prices page on the Arab Trader website