As we know that altcoins is alternatives of Bitcoin. It also works much like Bitcoin. Well, in this article we will talk about Altcoins’ pros and cons based on The Balance.
Altcoins’ Pros
First, Altcoins are able to improve on Bitcoin’s flaws. It means altcoins are generally designed to address a perceived shortcoming with the Bitcoin framework, whether it is speed, mining cost, or some other factor.
Secondly, Altcoins provide competition. By adjusting the rules under which Bitcoin operates, altcoin creators make space for new competitors to the Bitcoin system.
The last, it has low transaction fees. One of the benefits of using altcoins as a payment method, in addition to secure blockchain technology, is the relatively low transaction fees charged for each transaction.
Altcoins’ Cons
Firstly, altcoins’ value is very volatile. As an investment, altcoins are very new and their value can change drastically.
Altcoins is highly potential for scams and fraud. Altcoins, as with Bitcoin, are frequently the subject of scams and other fraudulent schemes.
Now, you have known the pros and cons trading in altcoins. Thus, you can choose whether invest in altcoins or not.
Types of Altcoins
Frequently, Altcoins undertakes from enthusiasts, and sometimes the basis for complete new businesses. They can even be greater than coins, creating intocomplete new frameworks for everything from messaging applications to online marketplaces.
An altcoin will often change Bitcoin’s guidelines adequately to do something uniquely productive and may have a particular application.
Some coins, such as solarcoin, have been designed as a unit of exchange for solar power production. Others, such as namecoin, have formed the basis for a new system of domain names on the Internet.
READ ALSO: Understanding Altcoins
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