Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 22, 2021
What's the Difference Between Tokens and Altcoins?

What's the Difference Between Tokens and Altcoins?

Cryptocurrencies may be making their way into the mainstream, but that does not mean they are not confusing – even to people with experience in the space. Between their inherently technical nature, multiple varieties and sub-varieties, and endless terminology, cryptocurrency (defined here as digital or virtual currencies that are encrypted using cryptography, powered by the immutable digital ledger known as the blockchain) represents a whole, complex world. In cryptocurrency, the word ‘coin’ is an umbrella term encompassing tokens and altcoins, both of which are fixtures in the ecosystem. Let’s examine the difference.

Altcoins

Altcoins (short for alternative cryptocurrency coins) are coins that represent an alternative to Bitcoin, the most popular and recognizable cryptocurrency. All altcoins possess their own blockchain, independent from their source code, that records all transactions of their native coins.

Many altcoins are variants, or forks, of Bitcoin that leverage that cryptocurrency’s open-source protocol as the basis. Changes to Bitcoin’s code yield coins with different, distinctive features from the original – examples include Namecoin (the first altcoin, created in April 2011 as a decentralized, open-source information registration and transfer system), Litecoin, and Peercoin.

Forking from Bitcoin’s open-source code is not a requirement for an altcoin. Some prominent coins like Ethereum and Ripple are altcoins but have created their own blockchain and protocol instead, with their own subsequent forks.

Tokens

Tokens represent tradeable, interchangeable assets or utilities on top of the blockchain – anything from loyalty points to other cryptocurrencies. They are far easier to create than altcoins because they do not require elements of coding to alter a protocol or create a brand new blockchain. Tokens are designed by following a template on a blockchain (like Ethereum or Waves) and governed by self-executing computer codes called smart contracts. Once created, they are distributed to holders via Initial Coin Offerings (or ICOs), a popular means of crowdfunding without taking on venture capital money (and ceding control of your company with it). Using a template has the added benefit standardizing an interface for interoperability between different tokens – an ERC-20 standard on the Ethereum blockchain is used by 40-plus tokens, which means holders can store these different types of standardized tokens in a single coin wallet, something not possible with coins of different standards.

Structural differences are the main differentiator between altcoins and tokens. Both may be cryptocurrencies, but altcoins are distinct entities on separate blockchains while tokens operate as blockchain-based assets created via template. Each one occupies its own space in the vibrant, dynamic cryptocurrency ecosystem – maybe the next Bitcoin is just around the corner.

Related Tickers: BTC.X
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.