Join us
Join us
x
Accueil
chevron
Cryptocurrency Guide
chevron
What is an Altcoin and what are the promising ones in 2023 ?
Copié

What is an Altcoin and what are the promising ones in 2023 ?

Have you ever heard of “Altcoin”? If you are interested in the world of cryptocurrency, this term is surely not foreign to you, perhaps you even know what it is. In this article, we explain what an altcoin is but we also give you some promising altcoins if you want to start investing.

timer

Mis à jour le 11/26/2023 à 21:14

altcoins

Altcoin definition : what is it exactly?

In the wonderful world of cryptocurrencies, the Altcoin – Alternative coin – is a Bitcoin variant. In fact, the Bitcoin blockchain has been public, accessible, and open source since its launch. This has allowed many people to take its foundations to create other blockchains.

Today, many blockchains have emerged. All have different concepts, solutions to certain problems presented by the Bitcoin blockchain, mother of blockchains (speed of transactions, reduction of fees, etc.).

Altcoin definition

The notion of Altcoin encompasses all cryptocurrencies that are not Bitcoin. In short, there is Bitcoin on one side and thousands of Altcoins on the other.

What is the use of Altcoins ?

One may wonder the reason for the emergence of Altcoins. Why is Bitcoin not enough ?

By creating a currency running on a blockchain, Satoshi Nakamoto has created a monster of innovation. Only he created the first version of it.

Following this invention, many developers saw gigantic opportunities and wanted to evolve the idea.

Altcoins are therefore born from developers who want to create new innovations from the main innovation.

This is how today we find smart contracts, NFTs and all the web3 which is also developing.

Which promising Altcoins in 2023 ?

What are the most popular Atcoins in 2023, and why, where to buy them, how… But above all: what are the altcoins in which to invest… or not. Definition of the most famous tokens in a few lines.

Although we obviously cannot read the future or tell you which altcoin to invest in, here is a list of some cryptos to follow closely soon :

  • Ethereum
  • Ripple
  • Litecoin
  • Cardano
  • Sandbox token
  • Axie Infinity Token

Ethereum (ETH 2.0) : the altcoin without going through a third party

Ethereum (ETH) is a promising altcoin open to everyone : this digital token houses money, global payments and applications, giving up control of your personal data.

The Ethereum blockchain has brought the innovation of smart contracts. Ethereum can also develop other projects than digital money. Anything you own can be represented, traded and used as non-fungible tokens (NFTs) through this smart contract system.

The arrival of ETH 2.0 risks further revolutionizing the market since the Ethereum blockchain will improve, notably by moving from Proof of Work to Proof of Stake.

Ripple : the altcoin of banks

Altcoin Ripple is a real-time gross settlement (RTGS) system: an exchange market and remittance network built on a native digital currency called XRP (Ripple).

This promising Altcoin supports any fiat currency, cryptocurrency, or any other unit of value. Increasingly adopted by banks and payment networks, Ripple has a number of advantages: price and security.

Litecoin : the improved version of Bitcoin

Litecoin (LTC) is an enhanced Bitcoin cryptocurrency. Launched in 2011, cryptocurrency aims to become a real means of daily payment for its users.

This efficient altcoin erases some shortcomings of Bitcoin, including the slowness of the transaction validation process.

Cardano : the perfect synthesis

Developed by Charles Hoskinson, co-creator of Ethereum, Cardano is another promising Altcoin. Defined by some as the perfect synthesis of Bitcoin and Ethereum, this Altcoin allows the execution of smart contracts and also aims for carbon neutrality.

Cardano’s in-house cryptocurrency – ADA – now ranks third in capitalization : a good investment opportunity !

Sandbox token : the Metaverse explosion

SAND is the token of the well-known The Sandbox and is the explosive altcoin of 2022. If the metaverse phenomenon fascinates you, The Sandbox is the revolutionary project to invest in. Starting from a mobile game designed in 2011, the startup has grown to offer the most famous metaverse on the market today.

The Sandbox is a game that consists of a gigantic open world and uses the codes of Minecraft. This Play to Earn is already attracting very large investors who are buying virtual plots of land on the map.

The SAND token is therefore the native crypto of the game which is exchanged in the game and which allows players to buy objects, etc.

Axie Infinity token : a “play to earn” altcoin

The Altcoin Axie Infinity token is the native cryptocurrency of the Axie Infinity play to earn game built on the Ethereum blockchain. But making money raising virtual pets is not easy!

Play-to-Earn game markets are tricky: the three main cryptocurrencies in the ecosystem (AXS, SLP and RON) have lost a lot of value in recent months.

How to buy Altcoins ?

Now you might want to buy some! The most promising altcoins are put up for sale via different channels: purchase or exchange platforms (Exchanges), or even trusted intermediary companies (Brokers). We define for you the best ways to invest in your precious tokens.

Exchanges 

For seasoned traders, an Exchange is the ideal tool to invest because you really own the altcoins. As such, there are two types of Exchanges :

  • purchasing platforms that allow you to buy your altcoins for euros or dollars. Few in number, this type of platform requires fairly complex bank accreditations
  • les plateformes d’échanges entre cryptos. On échange une crypto-monnaie A pour une crypto-monnaie B. Impossible de déposer du fiat, en revanche il est possible d’y déposer des stablecoins comme de l’USDT ou du DAI
  • exchange platforms between cryptos. We exchange a crypto-currency A for a crypto-currency B. Impossible to deposit fiat, on the other hand it is possible to deposit stablecoins such as USDT or DAI

Binance

Avec plus de 15 millions d’utilisateurs, 1,4 millions de transactions par seconde et 2 milliards de dollars de volume de trading moyen, Binance est une plateforme fiable et sécurisée. 

With over 15 million users, 1.4 million transactions per second, and $2 billion in average trading volume, Binance is a reliable and secure platform.

It is also the most used exchange platform in the world! It recently obtained its registration with the AMF (Autorité des Marchés Financiers) and is therefore regulated in France).

Bybit

Bybit is a young cryptocurrency exchange platform. Robust and secure, it is a platform that is however quite complex to use and is aimed more at experienced traders.

Bitget

Bitget est un exchange récent et très orienté trading de cryptomonnaies. L’offre de Bitget s’étend de l’échange de cryptos au copytrading.

Bitget is a recent and very trading-oriented cryptocurrency exchange. Bitget’s offering ranges from crypto trading to copytrading.

It is an intuitive platform that always seeks to improve its offer by integrating exclusive features and offering bonuses to its users. An exchange just waiting to be discovered and enjoyed !

Les Brokers

An altcoin broker is a company that acts as a trusted intermediary to facilitate trade between sellers and buyers.

Today, cryptocurrency brokers are not only used to execute orders, but also offer resources and investment tools. These expand the user’s possibilities (saving, staking or investing in projects before they are launched via a launchpad).

Vantage

Vantage is a very reputable broker and has been in the market for over 10 years. It offers a wide range of financial services and financial assets with generally advantageous spreads.

eToro

Created in 2007, eToro is the social trading broker where each user has a profile and can communicate with other members. It is a user-friendly interface that offers a large typology of assets and has been enriched with new features: CopyTrading – one of the most striking – and a compatible mobile application in order to be able to access the platform at any time. Significant advantage in the face of financial market volatility.

Bitpanda

Bitpanda is a very popular cryptocurrency broker with capped commissions. The broker now has more than 3 million users. In an increasingly competitive crypto market, the Bitpanda offer is reliable and allows you to open a wallet in order to house and buy various assets.

How to store Altcoins ?

To best store your dear Altcoins, you will use wallets : programs also called “wallets” which develop a process for storing digital coins via private keys which protect access to them. Wallets – or purses – are therefore in reality key rings…

However, the platforms mentioned above do not require the opening of an external wallet and they offer one within their solution (also called custodial wallet). External wallets are used to connect to decentralized finance protocols or to store cryptos on a fully decentralized wallet.

Interfaces between the real world and cryptocurrency protocols, many wallets exist on the market. Difficult to make a choice, but we can already separate all the wallets into 2 distinct categories : hot wallets and cold wallets :

  • hot wallet will be directly connected to the Internet when in use. These are also hosted on the Internet and are a kind of software. Most hot wallets are browser wallets which are in fact extensions to install on your browser
  • cold wallet will not be and will provide maximum security by reducing the hacker’s attack surface. Keeping large amounts of Altcoins with a cold wallet is therefore strongly recommended. These are comparable to USB sticks or external hard drives

⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.

InvestX is not responsible for the quality of the products or services presented on this page and shall not be held liable, directly or indirectly, for any damage or loss caused as a result of using any goods or services highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

Thomas

Thomas

Web editor for many years and SEO specialist, Thomas became an editor for InvestX when the site was launched. Passionate about the field of crypto and Web3, Thomas has made it his mission to deliver maximum value and introduce readers to the world of blockchains, considered for him as the world of tomorrow.

Risk Warning: Trading financial instruments and/or crypto-currencies involves high risks, including the risk of losing all or part of your investment, and may not be suitable for all investors. Crypto-currency prices are extremely volatile and can be affected by external factors such as financial, regulatory or political events. Trading on margin increases financial risk.

 

Before deciding to trade in financial instruments or crypto-currencies, you should be fully informed of the risks and fees associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and tolerance for risk, and seek professional advice if necessary.