Bitcoin vs Altcoin: Similarities and Differences Explained


Bitcoin and Altcoins share some similarities, but the differences classify the chart. Bitcoin is the original cryptocurrency, which means that it was the first currency on the market. Altcoins then built on the success of Bitcoins, making them support Bitcoins. Both types are decentralized, eliminating the need for a third party to process transactions. Bitcoin has comparatively higher volatility than Altcoins as it depends on sentiments and projections. Both currencies can be accepted as a source of payment, although not all merchants accept cryptocurrencies as a form of payment.

Pooja T.

I am a fun loving person who is also willing to constantly work towards my goals.

Cryptocurrency has become a hot topic in the market. You can’t help but hear people everywhere talking about cryptocurrency and how good of an investment option it is. But just by listening to others, you cannot decide which Cryptocurrency is good and which is bad.

Although a large part of the audience only knows Bitcoin as a cryptocurrency, which is very common because it was the first cryptocurrency to be launched. But there is a whole world of Cryptocurrencies besides Bitcoin. Although there are thousands of other coins on the market, Bitcoin is the one with the most utility. All other currencies other than Bitcoins are called Altcoins.

There is not much to understand between the two, since they have the same name. But there are some points that make them the same and different at the same time based on their value, utility and status. In order to clarify their nature or relationship to each other, this article is a brief explanation of the variation and cordiality of Bitcoin and Altcoin. Come on, let’s move on!

similarities

It is obvious that both Bitcoin and Altcoins share some similarities as they are both part of the Cryptocurrency buzzword. Both may not be one, but they share some traits that make them part of the same family. Let us review some points that denote the importance between the two types.

One of the most common factors between Bitcoin and Altcoins is volatility. Since cryptocurrencies are not controlled by a single body, there are multiple factors that affect their price and value. It is very common to see prices fall, be it Bitcoin or Altcoins. The time between the price fluctuation may differ, but the variation is mandatory.

Just as we keep money in our wallet while shopping, in the same way, to buy cryptocurrency, you need a digital wallet. It is not a fancy term for a special type of wallet, but rather a mandatory item when buying or selling Crypto. This is another common factor between Bitcoin and Altcoin, which means that both types are decentralized, eliminating the need for a third party to process transactions.

Both Bitcoin and Altcoins can be accepted as a payment source. Although not all merchants accept cryptocurrency as a form of payment, there are many businesses that do. The only thing you need to make sure is that neither the seller nor the buyer is taking unfair advantage of this.

Many merchants have started to accept Crypto as a source of exchange because that is what people are looking for. This somehow played an important role in changing the prices of different currencies.

differences

As much as there are similarities, the differences classify the chart. Both Bitcoin and Altcoin belong to the Cryptocurrencies, but they have significant changes. When compared on the basis of similarities, a few points can be noted. Now let’s see the differences they have.

Bitcoin is the original cryptocurrency, which means that it was the first currency on the market. Altcoins then built on the success of Bitcoins, making them support Bitcoins. Ethereum, the second largest cryptocurrency, came up with the concept of smart contracts that made it possible for other currencies to work seamlessly. Some even use the umbrella term to describe Altcoins.

Bitcoins have comparatively higher volatility than altcoins. But why is this so? This is a question that many people may come up with. Since Bitcoin is the oldest and most original cryptocurrency, it is more volatile in nature as it depends on sentiments and projections.

NathanReiff says:

“Bitcoin price fluctuates because it is influenced by supply and demand, investor and user sentiment, government regulations, and media hype.”

Another point of differentiation is the popularity of both types. Bitcoin is a popular cryptocurrency for many reasons. Altcoins, on the other hand, have increased in number, but their popularity is still quite a bit lower than that of Bitcoin. The main reason behind this may be that Bitcoin is the main cryptocurrency.

Bitcoin can be used as a currency while being exchanged for other Altcoins. In simple words, you can buy other Altcoins with the help of Bitcoin. But this is not the same with Altcoins. They do not have the power to buy other currencies and are also used for trading. People often refer to this dissimilarity as the difference in trade.

Just as fashion and style change with each clothing collection, in the same way, some focus area rules change with each new coin. If we talk about Bitcoin, it allows us to see the transactions in the ledger. Although they are meaningless numbers, you can see them, although not in any particular sequence. The same is not true for newly launched coins as they follow transparency in their transactions.

conclusion

I hope this article has made it clear that there are Cryptocurrencies besides Bitcoin and also helped you understand the relationship between Bitcoin and all other currencies. Although both types are similar and different in different ways, both are recommended investment options. There are many people who are gaining knowledge on this topic and learning how to trade cryptocurrencies. This may be an old topic on the market, but its buzz hasn’t subsided yet. In fact, it has increased even more.

For your better understanding, I have explained in a jiffy the similarities and differences between the two. While I’m still looking for more similarities to fill in, you can wait for the next article. 😉

How are both types alike?

Bitcoin and Altcoins are volatile in nature.

A digital wallet is required to buy or sell both types of cryptocurrencies.

Both can be accepted as a source of payment.

Wait, searching.

Keep looking….

While we are still looking for points to support the similarities, here is a brief overview indicating the differences:

  1. Altcoins were selected after the success of Bitcoin.
  2. Bitcoin is more volatile than Altcoins.
  3. Bitcoins steal the spotlight when they are in a show with Altcoins.
  4. Bitcoin allows you to trade other currencies, while Altcoins do not have the same power.
  5. Bitcoins are more transparent than altcoins.

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by Pooja T. @poojapr.I am a fun loving person who is also willing to constantly work towards my goals.

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