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Bitcoin and altcoins

To understand what Bitcoin and Altcoins are, you need to learn the meaning of a few more words, namely:

Cryptocurrency is a digital currency built on the Blockchain. Cryptocurrency is also called «crypt», «digital money», «digital coins», «virtual money» and other combinations of these and similar words.

The most important cryptocurrency is Bitcoin, which was launched in 2009 supposedly by Satoshi Nakamoto, but this is not accurate and it is still unknown whether it is true or not.

Bitcoin is the first and most famous cryptocurrency.

There are 3 main characteristics of bitcoin:

It exists independently of anyone (Government, State or financial organization); can be sent worldwide without a centralized intermediary, respectively anonymously; has an open monetary policy, rules that cannot be changed.

Altcoins are alternative cryptocurrencies to Bitcoin. They are also based on the blockchain, but are independent of the original algorithm and can use other types of encryption and process transactions more quickly.

As a rule, altcoin prices depend on the rate of Bitcoin.

Altcoins are a common name for coins (except Bitcoin) and tokens. But there is a difference between coins and tokens, and now we’ll look at these values in more detail.

So, Coins are currency. They can be earned (scribbled) and spent on goods and services. Coins are built on Blockchain.

Tokens are more securities or shares built on a supporting platform, such as Etherium or Waves. Tokens confirm that there is a stake in a project, and their cost depends on the success of the project. Tokens cannot be earned, one can only buy them. Tokens cannot be spent directly, one can only sell them for another currency or exchange for services of the company that issued them.

What is NFT

Article

Read about what NFT is. You will be able to better understand Tokens, we have tried to describe the meaning of NFT in simple words.