Altcoin

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An altcoin is any cryptocurrency other than Bitcoin. What is an altcoin? It is a digital asset that operates on a blockchain, often with features different from Bitcoin. Some altcoins offer faster transactions, smart contract capabilities, or enhanced privacy. What is altcoin used for? It depends on the project—some support decentralized applications, while others serve as digital payment methods or governance tools.

Altcoin mining refers to the process of validating transactions and adding new blocks to an altcoin’s blockchain. Depending on the network, mining can use proof-of-work (PoW), like Litecoin, or proof-of-stake (PoS), like Ethereum 2.0. Altcoins can be categorized into stablecoins, which are tied to traditional currencies; utility tokens, which grant access to blockchain services; and governance tokens, which let holders vote on project decisions. While some altcoins bring innovation, many lack long-term value. Researching a project’s purpose, development team, and adoption is essential before investing.

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