Altcoin Explained: Pros and Cons, Types, and Future

Certain DotBig ust crypto tradings are serving more purposes than exchanging the coin for something of value, and can be classified as “Utility Tokens” or “Security Tokens” for example.

  • Lastly, as blockchain technology becomes more ubiquitous, consider a future in which consumers exchange altcoins for functions like paying for service fees or file storage.
  • Contact KuCoin customer support with your questions at any time.
  • Credit card deposits may also incur additional fees from the card issuer.
  • Investopedia requires writers to use primary sources to support their work.
  • The best altcoin exchanges combine low fees with strong security and a wide range of cryptocurrencies.
  • At NextAdvisor we’re firm believers in transparency and editorial independence.

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Altcoin Explained: Pros and Cons, Types, and Future

While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Governance tokens are a type of utility token that purchases certain voting privileges, such as the ability to participate in blockchain-wide polls.

An example of a cryptocurrency token is USD Coin , a fiat-backed stablecoin that runs on the Ethereum blockchain. Since the creation of Bitcoin in 2008, more than 2,000 alternative cryptocurrencies were deployed. In fact, many of these were created as modified copies of Bitcoin, through a process known as Hard Fork. Despite sharing some similarities, each altcoin has its own functionalities. It’s hard to say which altcoins could have lasting value, compared to the ones enjoying their moment in the spotlight. A fork results in a kind of altcoin that comes from coders making a significant change in a blockchain’s protocol that alters how cryptocurrencies are recorded, traded, and received. Forks can happen on any blockchain and may require upgrades across all computer systems that keep it running.

What Altcoins Are Here to Stay?

As a company and team, we are very aware that not all coins and projects have good intentions. While we cannot guarantee to exclude them all, we have a Forex vetting process that each coin goes through before it is listed on the site. If we suspect that a coin or project is a scam, it does not get listed.


Browse our list of cryptos below to learn more about how to buy the token. are alternative cryptocurrencies other than market leaders like Bitcoin. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. KuCoin boasts one of the world’s most sophisticated security technology and maintenance team, and is constantly upgrading its security systems to ensure the safety of user assets and accounts.

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