📌 While Bitcoin dominates the market, there are thousands of other cryptos called altcoins, better known as alternative coins.
Understanding their role is essential to diversify one’s portfolio and seize investment opportunities.
📌 As for its definition and typologies, Altcoins are all cryptocurrencies other than Bitcoin in simpler terms.
There are several categories, the main ones being native Coins such as Ethereum $ETH, $BNB...
Regarding utility Tokens, they serve specific functions on platforms, we have mentioned: Chainlink, Uniswap,...
As for Stablecoins, they are pegged to a stable value such as the dollar $, the Yuan ¥, as we detailed previously in one of our dedicated publications on #binancesquare that we highly recommend.
📌 In the markets, Altcoins play three (3) major roles:
First, they allow for diversification and innovation in the blockchain;
Second, although often more volatile than $BTC , they offer high gain opportunities but with more risks;
Third, for traders and investors, they serve to monitor their correlation with Bitcoin better to adjust their strategies.
📌 Thus, knowing about altcoins, their utility, and their behavior in the markets is essential for any coherent modern crypto strategy.
