Do you always think why altcoins were created while bitcoin has been used by many? then is Altcoin better than Bitcoin?

So, to find out which is better between Altcoins and Bitcoin, especially if you are interested in investing in this field, let's first understand the differences between Altcoins and Bitcoin, through the following review.

1. Based on the meaning

The first difference between Altcoin and Bitcoin lies in their understanding. These two types of cryptocurrency or digital currency have different meanings. Altcoins are generally alternatives to Bitcoin. The combination of the words "alt" and "coin" which means alternative coin, offers features that are not present in Bitcoin, and is considered to have a more efficient and inexpensive way to transact on the internet. However, most of the altcoins in circulation are still designed based on the framework found in Bitcoin.

Meanwhile, for the meaning of Bitcoin itself, this digital currency is a means of payment that has the potential to become an investment instrument. Bitcoin was first created in 2009 by Satoshi Nakamoto. The real identity of the inventor of Bitcoin is still uncertain, because Satoshi Nakamoto himself is a pseudonym. Regarding its use, Bitcoin is actually intended for online transactions without using intermediaries such as bank services.

This digital currency is even more valuable, because in fact people who have Bitcoin can exchange it for goods or cash, with a pretty fantastic value.

2. Based on price

Perhaps this is the difference between Altcoin and Bitcoin that is most felt by investors. Yes, in the field of investment, both have different prices. Quoting from the Kontan Stock Setup page, the price of Bitcoin is much more expensive when compared to Altcoins. Hence, when Bitcoin has increased, Altcoins have also felt the positive impact, where investors have used this international payment instrument as an alternative investment.

3. Based on the investment period

Apart from looking at the price, the difference between Altcoin and Bitcoin also looks significant in terms of the investment period. In Altcoins, this cryptocurrency tends to be more suitable for the short term, especially for the Tron type. This is because Tron is not a type of coin that has good fundamentals, and few people use it for transactions, even though the fees offered are cheap.

Meanwhile, for long-term investments, this type of Bitcoin is the most appropriate because the benefits offered are quite promising. Not only that, Bitcoin is also considered to have a practical transaction process, with usage fees that tend to be cheaper than conventional currencies.

Advantages and Disadvantages of Altcoins – Bitcoin Earlier we discussed the differences between Altcoin and Bitcoin, now at this point, Myk Entertain wants to explain the advantages and disadvantages of each type of digital currency.

Advantages of Altcoins :

Provides features that Bitcoin doesn't have

So an alternative investment at a lower price

Low transaction fees when used as a means of payment

Disadvantage of Altcoins :

Its value is still unstable, especially as an investment instrument

The risk of fraud is still high

Advantages of Bitcoins :

Great investment potential

Efficient to use as a transaction tool

Low transaction fees

The risk of identity theft is small

Lack of Bitcoins :

The price is still not stable, sometimes it goes up sometimes it goes down

Not yet covered by SIPC alias Securities Investor Protection Corporation

Chances of being hacked are still there

Types of Altcoins

For information, there are many types of Altcoins. There are various types of Altcoins, and some of them are cryptocurrencies, such as Mining-based and Utility Tokens. Mining-based is a type of Altcoin that generates new coins in the mining process.

Meanwhile, Utility Tokens are digital tokens that can be used to purchase goods and services offered by cryptocurrency issuers. How Altcoins and Bitcoin Work Generally, Altcoins and Bitcoin work in a similar way. You only need to use your personal account to complete the payment.

Both Altcoins and Bitcoin

are both supported by Blockchain which is also known as 'open source code'. This blockchain is used to record permanent transactions and is a shared public ledger of records.

Altcoin and Bitcoin Trading Tricks

To trade Altcoins and Bitcoin, there are several tricks that need to be learned, including:

Buy when prices are low

On the other hand, don't buy cryptocurrency when the price is high

Don't put all your capital in the same crypto asset

Have other alternatives to reduce the risk of loss

Do you like this article, don't forget to follow, like comments and share.

#BTC #Altcoin #Binance #crypto2023 #dyor