Its proof-of-history consensus mechanism, combined with proof-of-stake, enables high transaction throughput. This performance has made Solana particularly attractive for decentralized finance applications, NFT marketplaces, and gaming platforms that require rapid transaction processing. Many altcoins are used within their respective blockchains to accomplish something, such as ether, which is used in Ethereum to pay transaction fees. Some developers have created forks of Bitcoin and re-emerged as an attempt to compete with it as a payment method, like the fork that created Bitcoin Cash. Dogecoin is a meme-inspired cryptocurrency that was created in 2013 as a joke (we have it adequately covered for you to check out). Despite its lighthearted origins, Dogecoin has gained a dedicated community and has even been endorsed by influential figures like Elon Musk.

BlackRock utilized that infrastructure to launch BUIDL, a tokenized money market that gives investors access to tokenized short-term US government bonds. You can buy and sell altcoins through top cryptocurrency exchanges like Coinbase, Kraken, and Binance.US. Not all exchanges offer every altcoin, so be sure the exchange you’re interested in offers the cryptocurrency you want. Evaluate the underlying technology an altcoin operates on and the potential advantages it may offer. This includes the altcoin’s consensus mechanism, security, scalability, and the degree of decentralization on the network.

Drawbacks of Altcoins

Like Bitcoin, altcoins are a form of decentralized digital currency created and traded on the blockchain and available through the best cryptocurrency exchanges. Many altcoins, like Litecoin, have emerged to improve on Bitcoin’s flaws and limitations or to achieve an alternative goal. Altcoins, as the name suggests, are alternative cryptocurrencies created to fill in Bitcoin’s capability gaps. Was the very first cryptocurrency launched, but certainly not the last.

• Bitcoin and altcoins have carved distinct niches in real-world use, driven by their technical capabilities and community focus.
• Utility tokens give holders access to a specific product or service or facilitate community governance of a protocol or platform.
• You won’t earn any profit through price appreciation with stablecoins, but there are plenty of applications for a coin whose value doesn’t rise and fall by the minute.
• Utility tokens are usually awarded to investors who participate in the early stages of a coin’s initial offering.

The current price spike of Ethena can be ascribed to the introduction of its yield-bearing brother, sUSDe, and synthetic stablecoin, USDe, into Telegram wallets. As a result of this move, DeFi activity on Ethereum has resumed, garnering a lot of investor awareness. As of May 19, 2025, RAY’s market valuation was about $951.78 million, and it is trading at about $3.24. The coin has grown tremendously, with a trading volume of $65.13 million in 24 hours. «Anything below 5% [price move] can often be considered just market noise,» said Kirill Kretov, trading automation expert at CoinPanel. «Some of this movement likely comes from profit-taking, as traders secure gains after the recent rally. With liquidity so thin, even modest sell-offs can quickly translate into noticeable corrections.»

Exchange

BNB is the native of the Binance exchange-the largest cryptocurrency exchange in the world. Binance Coin helps users pay transaction fees on the Binance exchange and offers them discounts. Chainlink (LINK) aims to connect smart contracts on the blockchain with real-world data. It is a decentralized network of oracles that provide data from various sources, such as APIs and IoT devices. Polkadot allows holders to vote among the governance tokens and elect validators responsible for validating transactions and maintaining the network.

Some are based on Bitcoin’s original code but with tweaks to create something new. A good example is Litecoin, often called the «silver» to Bitcoin’s «gold.» It processes transactions faster and uses a different mining system. By investing in https://fino-traze.net/, you can take advantage of the high volatility of the cryptocurrency market and potentially make a significant profit.

What is an example of altcoin?

Investing in these projects can give you the potential to gain from their success. AVAX is the coin used on the Avalanche blockchain, an open-source platform for dApps launched in 2020 by Ava Labs. Founded by researchers from Cornell University, Ava Labs says its proof-of-stake Snowman consensus protocol offers increased speed and scalability. It also allows developers the ability to create custom blockchains that are independent but interconnected with the main chain. Developers can control the permissions and privacy of these chains, giving them more autonomy and flexibility of the networks on which they build dApps.

Discover the Best Altcoins to Buy This Week: 6 Projects Solving Real Blockchain Gaps

There are literally thousands of altcoins, and new ones are launched every day. $TRUMP is a meme coin launched by President-elect Donald Trump on January 17, 2025, just days before his inauguration. Hosted on the Solana blockchain, the coin’s logo features a cartoon image of Trump raising his fist, commemorating his survival of an assassination attempt in July 2024. Uniswap aims to improve decentralized trading through its automated market maker protocol. Its governance token gives holders voting rights over protocol development and fee distribution.