[BEGINNER INFO] What is Altcoin?
In the crypto world, we often hear the term altcoin. Altcoin is short for alternative coin, which refers to all types of crypto assets other than Bitcoin. So, any coin that is not Bitcoin—such as Ethereum (ETH), Cardano (ADA), Solana (SOL), and thousands of others—falls into the altcoin category. Each altcoin usually has its own goals, technologies, and advantages that differentiate it from Bitcoin.
Why are people interested in buying altcoins?
1. High Profit Potential
Some altcoins have prices that are much lower than Bitcoin, but they can experience significant price spikes in a short time. This is appealing to investors who want to achieve large profits with a smaller capital.
2. Unique Features and Technologies
Each altcoin has different functions. For example, Ethereum is designed to run smart contracts—automated digital contracts that form the basis of many decentralized applications (dApps). Solana offers super fast and cheap transactions, while Cardano focuses on academic research and sustainability.
3. Portfolio Diversification
By investing in several types of crypto assets, investors can spread their risks. Altcoins can complement Bitcoin in a portfolio, providing opportunities for greater profits, although they also come with higher risks.
However, it is important to remember that altcoins are very volatile. Prices can change drastically in a short time. Therefore, always conduct thorough research before deciding to buy altcoins. Do not just follow trends without understanding the project behind the coin.
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