Difference between Bitcoin vs. Altcoins

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Difference between Bitcoin vs. Altcoins Bitcoin
is the oldest cryptocurrency in the world and has
the largest market capitalization. Most of us
know Bitcoin and its features. After the release
of Bitcoin, different types of altcoins were
released in the cryptocurrency world. While many
people believe that both are the same, the
experts say that Bitcoins and Altcoins have many
differences. This guide will show the major
differences between Bitcoin and Altcoins. We will
further discuss the meaning of both these
cryptocurrencies with features and
characteristics. What is Bitcoin? Bitcoin was the
first cryptocurrency developed in the year 2009
by Satoshi Nakamoto. It was originally in the
form of digital cash that acts like a ledger.
Bitcoin records all the transactions on the
decentralized networks. Every transaction that
takes place with Bitcoin can be verified. Bitcoin
network uses encryption that allows users all
over the globe to transact in Bitcoin. It is a
type of decentralized network and no one controls
it. Because of the scarcity of Bitcoin, the value
increases with time. The market capitalization of
Bitcoin is 403 billion according to the survey
of 2022. Around 10.1 million BTC are still in
circulation. What is Altcoin? Altcoin is any kind
of cryptocurrency not including Bitcoin. Many
types of altcoins were released after the release
of Bitcoin. Altcoins will solve many issues such
as transaction speed and security factors. They
will facilitate other functions on a
blockchain. Litecoin was the first altcoin made
from the fork of the Bitcoin blockchain. During
the year 2011, there were not many Bitcoin
competitors. The term altcoin was used for all
the cryptocurrencies released after Bitcoin. Some
of the most popular altcoins in the market
include Ethereum, Binance Coins
(BNB), and XRP.
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• BTC vs Altcoins Key Differences
• After discussing both the terms, we will now look
  at the major differences between Bitcoin and
  Altcoins.
• Market Dominance
• In terms of market dominance, Bitcoin holds the
  top position in the market. It has the largest
  market share in all the crypto assets. Bitcoin
  was the first cryptocurrency released in the year
  2009 and has managed to stay at the top even
  after years in the crypto market. It is the
  widely accepted crypto in the globe with the
  largest market capitalization.
• Altcoins include many types of cryptocurrencies
  and represent several projects and technologies.
  They were released after the release of Bitcoin.
• Technology and Functionality
• Now, we will look at the difference between the
  two cryptos in terms of technology. Bitcoin is a
  kind of decentralized platform and it mainly
  secures top transactions. On the other hand,
  Altcoins include many new technologies and
  functionalities beyond simple transactions.
  Ethereum helps to create smart contracts with
  certain conditions.
• Price Volatility
• In terms of price volatility, both Bitcoin and
  Altcoins go parallel to each other. Both get high
  price volatility. However, Bitcoin is less
  volatile because of its large market
  capitalization and high adoption. On the other
  hand, Altcoins have higher price swings than
  Bitcoins. You may gain higher profit
  opportunities in Altcoins than Bitcoin along with
  certain risks as well.
• Bitcoin vs Altcoins Key Features and
  Characteristics
• We will further discuss the features of Bitcoin
  and Altcoins in this section.
• Bitcoin Features

1. Hard cap of Bitcoins
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• Bitcoin can be a maximum of 21 million in number.
  The hard cap is built within the core of
  Bitcoins code. This hard cap can be changed only
  with the help of unanimous consensus by a
  decentralized body of custodians elected in the
  service. Bitcoin has a fixed supply and acts as
  an incentive to validate the network.
• Valuable asset
• Bitcoin has been a mainstream asset for many
  years. According to the latest survey, there are
  more than 100 million BTC users all around the
  globe. Bitcoins widespread popularity makes it
  the most valuable crypto in the globe. Apart from
  that, the high number of users also adds to the
  value of Bitcoin. It is widely accepted by the
  users and includes heavy liquidity as well.
• Decentralized platform
• Bitcoin is a decentralized platform as it cannot
  be validated without unanimous consensus in all
  the nodes. A node is a computer connected to the
  network of other computers communicating with
  each other via internet. Decentralization is a
  balance system before blocks are added to the
  chain. It is a unique feature of Bitcoin.
• Scarcity
• Bitcoin has a supply of 21 million coins right
  now. It is a scarce cryptocurrency which makes it
  a valuable cryptocurrency around the globe.
• Security of the coin
• Mining is a process that regulates the blockchain
  of Bitcoin. This process includes powerful
  computers that solve complex mathematical
  problems to validate every transaction.
• Altcoin Features
• 1. Innovative technologies
• Altcoins are all other kinds of cryptocurrencies
  except Bitcoin. They bring new technologies and
  features that one will not find in Bitcoin. These
  new technologies and features will lead to more
  advancement in the crypto space. They will make
  the mining process of cryptocurrencies easier
  than before.

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• Multiple functions
• Altcoins can be used for the various purposes.
  They will help to improve Bitcoins technology
  and enhance the working of other industries such
  as finance, healthcare, and gaming. The different
  types of altcoins can be used for various
  purposes in the crypto world.
• Helps to boost growth
• Many altcoins can appreciate the price if their
  projects become popular and are widely adopted by
  people around the world. Certain altcoins have a
  massive price increase which give higher returns
  to the investors than other cryptos.
• Diversified portfolio
• Altcoins help you to diversify crypto portfolio
  beyond Bitcoin and Ethereum.
• Final words
• These are the major differences between Bitcoin
  and Altcoins. Both have their own benefits and
  drawbacks. You can talk to a financial expert
  before investing money in any cryptocurrency.
  Experts will explain the various things related
  to cryptocurrency such as price volatility, risk
  involved and so on. They help you to take the
  right decision while choosing any option between
  Bitcoin and Altcoins.