A Must-Read for Newbies in the Crypto World! Unveiling Mainstream Coins and Altcoins
Dear ones, have you been confused by mainstream coins and altcoins after entering the crypto world? Today, let's have a good science lesson~
🌟Mainstream Coins: The Presence of Big Shots
Coins like Bitcoin (BTC) and Ethereum (ETH) are the 'top-tier' in the crypto world. Bitcoin is the pioneer of blockchain technology, decentralized, with a total supply of 21 million coins, making it very scarce, often referred to as digital gold. Many people use it for value storage and cross-border payments. Ethereum is also super impressive, pioneering smart contracts and boasting a massive developer community. The decentralized applications (DApps) built on it are diverse, and popular concepts like DeFi and NFTs are inseparable from it.
Mainstream coins have high market capitalization and strong liquidity, easily traded on major platforms. The technology is mature, refined and tested over many years, ensuring safety. They have countless fans worldwide, with very active communities, bustling discussions on technology exchanges and project explorations. Their application scenarios are also very broad, genuinely changing the game in finance and the internet.
🐶Altcoins: A Mix of Potential and Risks
Besides mainstream coins, the rest are basically considered altcoins. Among them, there are potential stocks and 'minefields.' Take Dogecoin (DOGE), which started as a joke but skyrocketed in market value due to its strong community culture and celebrity effect, becoming the representative of Meme coins. There are also some altcoins focused on specific fields, such as solving data privacy issues and optimizing transaction speeds. If the technology can indeed be implemented, they might just break new ground.
However, altcoins generally have lower market capitalization, and trading may not be very active, with liquidity not matching that of mainstream coins. Most of the technology is a mimicry of mainstream coins, and some are even riddled with vulnerabilities, making them easy targets for hackers. The community size is small, and enthusiasm can rise and fall quickly. Many altcoins have vague application scenarios, relying on conceptual hype, and can easily become a trap for investors.
💡Investment Advice
For ordinary investors like us, if you seek stability, mainstream coins are a good choice, likely to maintain and increase value in the long term. If you want to take a chance for high returns, allocate a small portion of spare money to research those promising altcoins, but definitely avoid going all in!
