Benefits of Altcoins
- Innovation: Altcoins can bring innovation to the cryptocurrency space with new features and functionalities that Bitcoin may not have. For example, Ethereum introduced smart contracts, which has led to the development of decentralized applications (dApps).
- Diversification: Altcoins provide diversification options for investors, which can help to mitigate risk by spreading investments across multiple cryptocurrencies.
- Potential for high returns: Some altcoins have the potential to provide higher returns than Bitcoin or other traditional investments due to their lower market caps and higher volatility.
- Community-driven: Altcoins often have a dedicated community of developers and supporters who are passionate about the project, which can lead to faster development and adoption.
What are Altcoins?
Altcoins are the alternative digital cryptocurrency to Bitcoins. It refers to the group of cryptocurrencies and ultimately all cryptocurrencies other than Bitcoin.