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Altcoin Guide

Information about Altcoins

What Does Altcoin Mean?

Altcoin refers to all digital cryptocurrency launched following the success of Bitcoin; hence the name, which means “alternative to Bitcoin”.  There are over 900 Altcoin currencies that have been created since Bitcoin.

 

altcoin image

 

Facts About Altcoins

Meaning: “alternative” coin (currency) to Bitcoin

Number of Altcoins: over 900

First Altcoin: Namecoin

Examples of Altcoins: Litebit, BTCdirect, Kraken, Bittrex

 

The Most Important Altcoin Terms and Definitions

Blockchain – the simplest possible definition of blockchain technology is that it’s a decentralized database that can’t be manipulated, making it un-hackable.

Coin exchange is a market where buyers and sellers trade Bitcoins and Altcoins.

Dapp stands for decentralized application – referring to apps written in the blockchain.

Encryption is information that can only be unlocked with a private key code.

ICO (Initial Coin Offering) is an opportunity to purchase digital coins for the first time from a new blockchain currency.

Miner is a computer validating blockchain transactions.

A Public Key is used to transfer coins publicly, in and out of a wallet.

A Private key is a key to open a wallet.

Satoshi is the smallest denomination of Bitcoin – one hundred millionth of a single Bitcoin.

A Wallet is a digital device used to store, send, and receive digital currency. Examples are Jaxx and Exodus.

 

Miners and Cryptocurrencies

Miners are part of the blockchain network that aid in verifying and recording the transactions of cryptocurrency. In exchange, they are compensated with a small amount of the cryptocurrency being transacted. The act of mining, thus, involves offering your computing power to the network in exchange for some cryptocurrency.

Verification and recording protocols vary by Altcoin currency. Computing power and hardware requirements for each blockchain network can differ.

 

Additional Resources

This has been an introductory guide to alternative cryptocurrencies to Bitcoin.  To keep learning more about other alternative digital currencies and finance in general, these additional free CFI resources will be helpful:

  • Cryptocurrencies
  • Bitcoins
  • Ethereum
  • Blockchain

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