Crypto Glossary

Posted on April 29, 2021 in
Glossary

Altcoin

Altcoin refers to any digital assets, such as a coin or token that is not Bitcoin. Because Bitcoin is the original cryptocurrency, it inspired many people to create their own digital assets as an alternative coin, hence the term ‘altcoins’

What is altcoin?

Altcoin is a combination of two words “alternative” and “coin” to form altcoin. After the success of bitcoin, many other peer-to-peer digital currencies paved the way. Altcoins are trying to target the perceived limitations of Bitcoin. Altcoins have to create competitive strategies to succeed against Bitcoin. 

Types of Altcoins

Types of altcoins consist of mining-based cryptocurrencies, stablecoins, security tokens, and utility tokens. Some altcoins will change Bitcoin’s rules sufficiently to do something uniquely and may have a particular application. Examples of altcoins include Ethereum and stablecoins such as Tether and USDC.

Mining-Based cryptocurrencies

These altcoins have a mining process which generates new coins by solving problems to unlock blocks. These coins are more similar to Bitcoin than other altcoins. Ethereum is the most popular mining-based altcoin.

Stablecoins

Stablecoins are an improvement based on Bitcoin because they reduce volatility. The value of the coins exists in currencies. Popular backed altcoins include the US dollar, the euro, and gold. DAI is one example of a stablecoin.

Security Tokens

These altcoins are often launched in an initial coin offering (ICO). Security tokens resemble traditional stocks, and they provide a type of dividend like payout or ownership in a business.

Utility Tokens

Utility tokens provide a claim on services and they are sold as part of an ICO. Filecoin is an example of a utility token offered in an ICO. Filecoins are created to be exchangeable for decentralized systems.

Related Articles

10 Best Altcoins To Buy In 2022 Before the Next Altcoin Season

October 11, 2022

10 Best Altcoins To Buy In 2022 Before the Next Altcoin Season

There are several Altcoins in the crypto market, but here is a list of the 10 Best Altcoins to invest in 2022. Don’t miss out.

Altcoin Season When, what and why?

December 10, 2021

Altcoin Season When, what and why?

Do you know that Altcoins have their season? Learn the factors that cause Altcoin season to stay up to date on the investment trends.

What are altcoins and can they make you money?

December 09, 2021

What are altcoins and can they make you money?

Learn the definition and different types of Altcoins, as well as what you need to know before investing, all in one article!

We offer investors a variety of opportunities in the digital assets industry. Our innovative platform provides access for anyone seeking investment returns anywhere, anytime. Our ecosystem aims at making finance an everyday enriching activity.

RISK WARNING ON DIGITAL PAYMENT TOKEN SERVICES

The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of Zipmex.

Before you pay Zipmex any money or DPT, you must be aware of the following.

  1. Zipmex is not currently licensed by MAS to provide DPT services. This means that you will not be able to recover all the money or DPTs you paid to Zipmex if Zipmex’s business fails.
  2. You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by Zipmex.
  3. You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
  4. You should be aware that Zipmex may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
  5. DPT held in your Hosted Wallet is not subject to the Singapore Deposit Insurance Scheme (“SDIC”) or any similar insurance or guaranty scheme of any other jurisdiction. In addition, funds stored in your Fiat Wallet do not benefit from the SDIC or any similar insurance or guaranty scheme of any other jurisdiction.

ZipUp+ products have not been approved by the Monetary Authority of Singapore (“MAS”) under the Payment Services Act 2019 and MAS has not reviewed or approved any features of these product offerings. Please review this link for the full terms and conditions and risk disclosure.