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What are altcoins?
You’ve probably heard about altcoins (alternative coins). Their name refers to the fact that they are an alternative to Bitcoin and traditional fiat money. Launched in 2011, early altcoins were meant to improve the features of Bitcoin like transaction speed and energy efficiency. Newer altcoins, however, serve a variety of uses, depending on the developers’ objectives.
In general, altcoins function similarly to the original Bitcoin. You can send money from your digital wallet to another user’s wallet using a private key. The transactions will be permanently and openly recorded on a blockchain, so they can’t be changed or denied after the fact.
Why are altcoins on the rise?
Altcoin value is now progressively gaining traction in the cryptocurrency market, as the market recently surpassed the US$2 trillion mark. According to experts, due to the advent of altcoins such as Ripple, Polkadot, XRP, Cardano, and others, Bitcoin is losing some of its dominance in the global cryptocurrency market. In fact, Altcoins accounted for almost 40% of the global cryptocurrency market in March 2021, according to CoinMarketCap.
Investors that flock to cryptocurrencies for attractive returns believe that crypto behemoths like Bitcoin and Ethereum may not have much steam left, given how volatile Bitcoin is and how its price swings back and forth based on cryptic tweets from crypto influencers like Elon Musk. These days, investors are looking for new coins that they believe will dramatically disrupt the ecosystem. They want to invest in them right from the beginning and make profits, similar to how bitcoin and ether investors did. As a result, altcoin value has significantly increased in market capitalization.
Altcoins span a variety of types, from stablecoins to mining-based coins to staking-based coins to governance tokens. The type of an altcoin is determined by how it functions and what it is used for.
Top 10 altcoins
Here are the top 10 altcoins in the market, with values as of 21 February 2022.
- Ethereum (ETH)
The first on our list of top 10 altcoins is Ethereum, the second-largest cryptocurrency after Bitcoin. Found in 2013 by Vitalik Buterin, Ethereum is a decentralized, open-source blockchain with smart contract functionality, second only to Bitcoin in market capitalization. The platform’s native cryptocurrency is Ether. Ethereum’s purpose is to develop a decentralized suite of financial products that anybody in the world, regardless of nationality, ethnicity, or beliefs, can freely use.
ETH altcoin price Dollar: $2,684.61
Market Cap: $321,268,291,187
ETH altcoin price INR: ₹2,10,655.9
- Cardano (ADA)
Based on peer-reviewed research, Cardano is the first proof-of-stake blockchain platform. Using cutting-edge technologies, decentralized applications, systems, and communities are created with unrivaled security and long-term viability. Hoskinson, one of the five original founders of Ethereum, was a co-founder of Cardano.
ADA altcoin price Dollar: $0.9417
Market Cap: $31,666,757,381
ADA altcoin price INR: ₹74.1860
- Tether (USDT)
Tether comes third in the list of top 10 altcoins and is a cryptocurrency whose price is directly linked to the price of the US dollar. Since Tether was created in order to always be worth $1, it is referred to as a stablecoin. Tether and other stablecoins aim to smooth out price fluctuations in order to attract users who might otherwise be wary of digital currencies, such as Bitcoin, which have endured repeated episodes of extreme volatility.
USDT altcoin price Dollar: $1.00
Market Cap: $79,082,406,086
USDT altcoin price INR: ₹78.91
- Binance Coin (BNB)
Binance Coin is a utility cryptocurrency that can be used on the Binance exchange to cover trading costs. Those that use the token to pay for the exchange can trade at a discounted rate. The coin is limited to 200 million tokens and runs on the Ethereum network using the standard ERC 20 protocol.
BNB altcoin price Dollar: $368.95
Market Cap: $60,926,113,657
BNB altcoin price INR: ₹29,086.00
- XRP (XRP)
XRP, which was founded by some of the same people as Ripple, a digital technology and payment processing company, can be used on that network to ease currency transfers. XRP is essentially a digital currency that serves as a bridge between different currencies. It makes no distinction between fiat and cryptocurrencies, making it simple to trade one currency for another.
XRP altcoin price Dollar: $0.769
Market Cap: $36,875,155,961
XRP altcoin price INR: ₹60.52
- Solana (SOL)
Solana is the fastest blockchain and cryptocurrency ecosystem, with over 400 projects, including DeFi, NFTs, and more. It permits peer-to-peer transactions with its internal cryptocurrency, SOL, and claims to support 50,000 transactions per second.
SOL altcoin price Dollar: $88.76
Market Cap: $28,383,724,544
SOL altcoin price INR: ₹7,000.01
- Polkadot (DOT)
Polkadot is a one-of-a-kind proof-of-stake crypto that aims to provide interoperability between different blockchains. As a result of its protocol, permissioned and permissionless blockchains can collaborate under a single roof, as well as oracles. Since Polkadot’s inception in 2020, this integration property has sparked significant growth which may place it on the top of the top 10 altcoins list very soon.
DOT altcoin price Dollar: $16.58
Market Cap: $16,363,108,451
DOT altcoin price INR: ₹1,306.60
- USD Coin (USDC)
USD Coin is a digital stablecoin based on the Ethereum, Stellar, Algorand, Solana, Tron blockchains, and the Hedera Hashgraph system. It is pegged to the US dollar. USDC, like Tether, aims for a 1 USD to 1 USDC ratio.
USDC altcoin price Dollar: $1.00
Market Cap: $52,615,280,478
USDC altcoin price INR: ₹78.51
- Dogecoin (DOGE)
Dogecoin was famously established as a joke in 2013, but it quickly became a popular cryptocurrency choice because of a committed community and inventive memes. There is no limit to the number of Dogecoins that can be issued, making the cryptocurrency susceptible to depreciation as the supply grows.
DOGE altcoin price Dollar: $0.1353
Market Cap: $17,952,658,346
DOGE altcoin price INR: ₹10.6134
- Avalanche (AVAX)
Finally, the last one on the top 10 altcoins list is Avalanche; Avalanche is the fastest smart contract platform in the blockchain industry. On 21 September 2020 Avalanche became live on the mainnet. Since then, the platform has secured over 100 projects, 1,000+ validators, and over 600,000 members.
AVAX altcoin price Dollar: $77.01
Market Cap: $18,594,874,203
AVAX altcoin price INR: ₹5,954.113
(all $ figures obtained from CoinMarketCap on 21 February 2022)
(all INR figures obtained from WazirX on 21 February 2022)
Other than these top 10 altcoins, the crypto market also consists of over 10,000 other altcoins. Certainly, over the last decade, these altcoins have come a long way and proving themselves to be more than just an alternative to Bitcoin.
Future scope of altcoins
Altcoins have a lot of potential in them, and in the future, they may well take over the crypto market as Bitcoin loses its dominance and altcoin value skyrockets. Here are a few reasons why the future scope of altcoins will continue to increase.
- Increased scalability
Compared to Bitcoin, altcoins have much better scalability. One of the most significant characteristics of cryptocurrencies is scalability because the higher the scalability, the better the currency’s growth rate. Scalability essentially refers to a network’s ability to handle a large number of transactions in a busy environment.
- Reduced prices
The best thing about altcoins is that they are less expensive than Bitcoin. Bitcoin’s price is so high that small and medium-sized investors cannot participate actively in the market. As a result, altcoins give such investors a better chance to invest in the crypto market.
- Potential for more profits
Experts predict that the price of Bitcoin will further slide, causing the price of other altcoins to rise (such as Ethereum). As a result, investors are switching from Bitcoin to altcoins to gain money.
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Frequently Asked Questions
Is Bitcoin Trading Is Legal In India?
In 2020, the Supreme Court of India lifted the RBI’s restrictions on cryptocurrencies. According to the Supreme Court, the existence of Bitcoin or another cryptocurrency is unregulated but not unlawful. The verdict has greatly aided the world of digital money in the country. To put it another way, investing in Bitcoin is perfectly legal, and you may do so through various apps and traders.
How Bitcoin Mining Works?
Bitcoin mining is a crucial element of the blockchain ledger's upkeep and development and the act of bringing new Bitcoins into circulation. It's done with the help of cutting-edge computers that solve exceedingly challenging computational arithmetic problems. Auditor miners are rewarded for their work. They're in charge of ensuring that Bitcoin transactions go through smoothly and legitimately. This standard was established by Satoshi Nakamoto, the founder of Bitcoin, to keep Bitcoin users ethical. By confirming transactions, miners assist in avoiding the "double-spending issue."
How Many Bitcoins Are There?
There are 18,730,931.25 Bitcoins in circulation as of June 2021. The total number of Bitcoins that would ever be there is just 21 million. On average, 144 blocks are mined every day, with 6.25 Bitcoins per block. The average number of new Bitcoins mined every day is 900, calculated by multiplying 144 by 6.25.
How To Make Bitcoin?
Bitcoin mining is not just the process of putting new Bitcoins into circulation, but it is also an essential part of the blockchain ledger's upkeep and development. It is carried out with the assistance of highly advanced computers that answer challenging computational math problems. Miners are rewarded for their efforts as auditors. They are in charge of ensuring that Bitcoin transactions are legitimate. Satoshi Nakamoto, who is the founder of Bitcoin, innovated this standard for keeping Bitcoin users ethical. Miners help to prevent the "double-spending problem" by confirming transactions.
Can Bitcoin Be Converted To Real Money?
Crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer Peer Transactions are all options for converting Bitcoin to cash. This can be accomplished by using Bitcoin exchanges such as WazirX. A Bitcoin ATM is a real place where you may purchase and sell Bitcoins with cash, unlike standard ATMs that allow you to withdraw money from your bank account. Many websites provide the option of purchasing Bitcoin in return for a prepaid debit card that works similarly to a standard debit card. Through a peer-to-peer marketplace, you may sell Bitcoin for cash faster and more privately.
Is Bitcoin Legal In India?
In India, Bitcoin is not illegal. Because of cryptocurrency's rapid evolution, policymakers and regulators seemed to have recognized the chance to accept the new technology early. From the infamous 'RBI ban' in 2018 to reports of an impending bill banning cryptos in 2021 that has yet to develop, India has seen its fair share of ups and downs when it comes to Bitcoin regulation. Last year, the Supreme Court Of India approved the use of Bitcoin throughout the country. According to the Supreme Court, the existence of Bitcoin or any other cryptocurrency is unregulated but not unlawful.
Who Created Bitcoin?
Bitcoin is the first application of the concept of "cryptocurrency," first articulated in 1998 on the cypherpunks mailing list by Wei Dai, who proposed a new form of money that relies on cryptography rather than a central authority to manage its creation and transactions. Satoshi Nakamoto published the initial Bitcoin specification and proof of concept on the cryptography mailing list in 2009. Satoshi exited the project in late 2010, with little information about himself available. Since then, the community has evolved, with numerous people working on Bitcoin. Satoshi's anonymity has sparked unfounded fears, many of which may be traced back to a misunderstanding of Bitcoin's open-source nature.
How Can I Convert Bitcoins To Cash?
Bitcoin may be converted to cash in various ways, including crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer to Peer Transactions. You may do this by using Bitcoin exchanges like WazirX. You may also sell Bitcoin for cash faster and more anonymously through a peer-to-peer marketplace.
Is Bitcoin Cash A Good Investment?
Bitcoin Cash is a hard fork of Bitcoin formed in 2017 to address Bitcoin's scalability and challenges. Bitcoin Cash seeks to make global transactions faster, cheaper, and more secure. Bitcoin Cash is now accepted by thousands of online and offline businesses all over the world. Studied correctly, Bitcoin Cash may be an investment worthy of consideration.
How To Convert Bitcoin To Cash?
There are many ways of converting Bitcoin to cash, such as crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, Peer to Peer Transactions. You can use cryptocurrency exchanges such as WazirX for this. Unlike typical ATMs, which allow you to withdraw money from your bank account, a Bitcoin ATM is a physical location where you may buy and sell Bitcoins using fiat currency. Several websites provide the option of selling Bitcoin in return for a prepaid debit card that may be used just like a standard debit card. You can sell Bitcoin for cash through a peer-to-peer platform in a faster and more anonymous manner.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
