Crypto investment has recently become booming. How come? The profits obtained from crypto trading can generate quite a lot of money.
Crypto, discovered in 2009 with the initial product Bitcoin, is increasingly popular and getting the global community’s attention.
As a crypto asset that is widely traded, Bitcoin benefits digital currency investors. As a result, more and more investors are starting to look.
However, crypto investing isn’t just limited to Bitcoin. In the cryptocurrency market, the term altcoin can be used to invest.
The profit potential is no less tempting. Even some people assess the benefits more than Bitcoin.
So what are altcoins? Let’s look at the explanation.
What is Altcoins?
“Altcoin” is a combination of “alt/alternative” and “coin,” which includes all tokens or coins other than Bitcoin.
The launch of an altcoin was launched after the success of Bitcoin in the community in 2011.
They intended it as an alternative to a new coin that is much better than Bitcoin in terms of energy and transaction speed.
How to Get Altcoins?
Both Bitcoin and Altcoin investors can get them on crypto exchanges. Crypto exchange is a place that brings sellers and buyers of crypto together.
In Indonesia, the crypto regulator, namely BAPPEBTI, has released a list of registered crypto exchanges, one of which is Indodax.
Indodax, the first crypto exchange in Indonesia, allows customers to buy altcoins with fiat currency.
Types of Altcoins
Altcoins certainly have various types. In this Indodax article, Indodax categorizes altcoins into six types, namely:
1. Mining-based altcoins
This altcoin requires a mining process first to get new coins.
This process is the same as Bitcoin, which requires a mining process to get it.
One of the most famous mining-based altcoins is Ethereum.
Stablecoin is an altcoin with a 1:1 asset backup with its physical commodity. This type of altcoin aims to overcome the volatility of Bitcoin.
The most well-known stablecoin example is USDT, which is a crypto that has a 1:1 backed asset at a price of US dollars.
3. Security Tokens
Like stablecoins, Security tokens are altcoins that are backed up by one security asset, such as gold, land values, or stocks.
Lots of altcoins are launched during the Initial Coin Offering (ICO) or, in other words, the initial coin offering.
4. Utility Tokens
Utility tokens are Altcoins created to facilitate specific needs and are sold as part of an ICO and realized with blockchain technology.
An example of a utility token traded on Indodax is Smooth Love Potion (SLP).
5. Token-based staking
It is a type of altcoin that uses a staking process to verify transactions and add more coins to the supply.
6. Governance Tokens
It is a type of altcoin that gives holders voting rights to help shape the project’s future.
Difference between Altcoins and Bitcoins
Altcoins and Bitcoin certainly have many differences. The following Indodax Academy summarizes some of the differences:
1. Altcoins are more advanced in terms of functionality
As altcoins came after bitcoin and aimed for a much better alternative, altcoins have much better features than bitcoin.
For example, Ethereum, whose network can be used by many tokens to create tokens.
2. Majority of Altcoin Supply is unlimited
From a supply perspective, the majority of altcoins have an unlimited supply. This is, of course, intended to overcome Bitcoin with a limited supply of 21 million BTC.
Best Altcoin List for Crypto Asset Investment
Reporting to the Indodax Academy article entitled List of the Best Altcoins for 2022, there are five best altcoins for crypto asset investment, namely:
1. Polygon (MATIC)
It’s not wrong that Polygon (MATIC) is one of the five best altcoins for crypto investment.
How come? Based on data from Coingecko, Polygon (MATIC) is included in the top 10 ranking list at Coingecko.
Polygon (MATIC), already listed on Indodax, is also one of the cryptocurrencies investors are currently loving.
An ERC-20 token, Polygon MATIC, can overcome high gas fees without giving up user security.
The MATIC coin was developed by Ethereum India developers, namely Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic, as a solution to Ethereum’s network, gas fee, transaction speed, and scalability problems.
Not only as an investment instrument, MATIC can also be used for staking.
2. Solana (SOL)
Solana (SOL) is one of the altcoins that can be chosen. Solana enters the top 20 list based on the Coingecko market and is a crypto that has been listed on Indodax.
Solana is predicted to be an Ethereum killer because it provides fast but inexpensive transaction services, and its technology is complemented by smart contract technology.
Solana’s advantage is the combination of Proof-of-Stake and Proof-History consensuses to maximize its scalability.
With fast transactions of 65,000 TPS (Transactions Per Second) for only 0.00025 US dollars, it is undoubtedly much more efficient than Ethereum.
3. Ether (ETH)
Ether is the number one altcoin and number two crypto, according to the Coingecko ranking.
So it’s no wonder this altcoin is one of the best altcoins to invest in.
Founded by Vitalik Buterin, Ethereum is a blockchain platform that has many advantages over Bitcoin.
One of them is the network which is often used for various things such as smart contracts or the creation of tokens which are now widely circulating.
Ether tokens are often used to buy NFTs on well-known NFT marketplace platforms.
4. Dogecoin (DOGE)
Dogecoin is one of the cryptos included in the top 10 crypto ranking, according to Coingecko.
Therefore, we cannot deny that this crypto is one of the right altcoins to invest in.
Dogecoin, a meme coin, has a lot of fans thanks to being backed by the CEO of Twitter, Elon Musk.
IBM engineer Billy Markus and Adobe engineer Jackson Palmer created Dogecoin.
With an unlimited number of Dogecoins, the price of Doge is volatile because the volatility is high enough to reap good returns.
Having a low price and a high level of popularity, it’s no wonder this altcoin always sits at the top.
5. Litecoin (LTC)
Litecoin is in the top 20 coin rankings based on Coingecko.
Litecoin is a crypto under the MIT/X11 license, a modification of Bitcoin.
Litecoin, published in 2011 by Charlie Lee, aims to develop a faster and cheaper version of Bitcoin.
Litecoin has been listed on Indodax, you can check the price of Litecoin here, and Litecoin can be chosen by investors who want to invest in altcoins.
That briefly explains what altcoins are and their ins and outs.
There are other types of Altcoins that you can trade on Indodax. You can see it on the Indodax market page and look for a profitable one.
If you are still curious and need enlightenment, please visit Indodax Academy.