A cryptocurrency is a virtual asset or in a more simple way, a digital currency which was designed to work as a medium of exchange and the financial transactions are secured by the cryptography. The features of cryptocurrency are that they are not issued by the central government or main authority so the government cannot interfere in this.
Altcoins are the type of cryptocurrency which was launched after bitcoins. Altcoins means all cryptocurrency other than bitcoins. According to coinmarketcap altcoins acquired 30-35 percent of the total cryptocurrency market in 2020. Altcoins are introduced where bitcoins have limitations so it makes an advantage to succeed against bitcoins. I know you can always use crypto robots to make money, but that’s risky as many scams are revolving in the market these days. Recently, a scam called as Bitcoin Revolution ripped off millions of dollars.
Before you should start thinking of investment in the altcoins, the main characteristics you must know and they are:-
- Acceptance of retailer- it means what sort of things you can purchase with it because some coins are designed not for exchange of goods but for other purposes.
- Methods of verification- main difference of cryptocurrencies are there methods of verification. There are mainly two types of verification-
- POW- Proof of work.
- POS- Proof of stock.
- Their market capitalisation- simple logic is that high market capitalisation indicates a high value per coin. Cryptocurrency market capitalisation is the total worth of all coins. Which are currently in circulation. Bona step is that you should also note the daily trading volume because it is more important than market capitalisation.
Now we should move on to our main topic which is top altcoins in 2020 and here are they:-
- Ethereum- it was launched in 2015 and it has grown 40x in the last two to three years. Its authors are Vitalik buterin and Gavin wood. It is the second largest cryptocurrency after Bitcoin experts very much believe that it has a potential to overtake Bitcoin in a few years. Its platforms allow how to create smart contracts due to which it has no third party interface fraud and possibilities of downtown.
Market capitalisation- $24.3 billion
Rank- 2, Price-$22.01,change- -0.30%.
- Binance coin- it was founded in 2017 by Changpeng Zhao.in terms of trading volume it is considered as the biggest cryptocurrency exchange features are fast transaction processing, low trading fees etc. Binance promises to give strong security ,performance and usability.
- Chain link- its team is represented by director Sergey Nazarov. Its launcher was not so successful but it managed to grow very well. Its features are the speed of transactions are increased ,decentralized currency system ,its external information passes of full scan orals provide secure protection for transaction.
- Cardano- this cryptocurrency is producing more functionality and making it easier to use in the smart contract industry. It’s plan has the following features: to create a blockchain which is highly efficient and versatile for its users. It is the first blockchain platform to use scientific philosophy with the research driven approach.
- Stellar- it was launched in 2016 and it grows to reach rank 13. Its features are its users have the ability to quickly send currencies by making use cryptocurrencies as a method of transaction and it mainly provides its services to individuals and it also provides to send money across borders very effectively.
- Monero- its main features are its privacy and is very good with performing financial transactions. Its authors are Nicholas van saberhagn. It was released in 2014.
- Tron- it was founded in 2017 by Justin sun. Its feature is that it doesn’t need any third party in between, it bridges the gap between creator and consumer. It acts as a decentralized storage for facility, distribution which makes it more efficient and cost effective.
- Z cash- it was established in 2016. It known features are its privacy by hiding the details of transactions, protects the name of sender and recipient, it gives the copy of transaction & user experience low fees.
- Vechain- it is for the supply chain industry,it became a very important part of the world economy, it gives applications to business and various fields of industry like inventory,quality ,control and tracking.
- Factom– it is the blockchain based industry system and is for business companies, it allows the business companies to create an unchanged database it is useful for all kinds of business apps.