Have you heard of the term “altcoin” but not exactly sure what that means? In this article we’re breaking down everything you need to know about altcoins, from the different types of altcoins and how they work, to how you can get your hands on them (buy altcoins). The crypto industry can often feel a little daunting, so we’re here to clear the air and help you establish a strong foundation of insight, knowledge and know how. 

Starting at the beginning, what are altcoins? Altcoins are all cryptocurrencies except for Bitcoin. Not too complicated, is it? Circling back to the early days of the crypto industry when there were only a few cryptocurrencies on the scene, any new coin that was introduced was referred to as an “alternative coin” (labelling it as an alternative cryptocurrency to Bitcoin), which was then shortened to altcoin. So when someone refers to an altcoin, know that they are talking about any cryptocurrency that is not the original (Bitcoin). Altcoins are still decentralized networks, with most of them utilizing blockchain technology.

How Many Altcoins Are There?

At the time of writing, CoinMarketCap reports that there are over 9,400 altcoins in the cryptocurrency industry. This number is increasing by the day, however it’s worth mentioning that these 9,400+ altcoins only make up 50% of the entire cryptocurrency market’s value. Bitcoin is still the most dominant cryptocurrency, with Ethereum the next bigger cryptocurrency. Ethereum is currently responsible for holding roughly 14.5% of the entire market’s value. As Ethereum is also an altcoin, this makes the “altcoin industry” worth $1 trillion. In general terms, one would rather just say the crypto industry.

The Different Types Of Altcoins

With an industry worth over $1 trillion, there is bound to be a wide range of variation. This is just the case with the crypto industry. There are a number of categories that have been created over the years, allowing for various altcoins to provide a new service to the industry. You can also expect to see tons of innovation in the altcoin space, as each new altcoin needs to either improve on the last one, or provide a different use case.

Each cryptocurrency is designed to solve a problem, either faced within the blockchain industry or outside of it, however, many of these have created a niche altcoin market. An example of this is altcoins focused primarily on providing anonymous transactions, these altcoins then fall into the Privacy category. We’ve detailed seven of the main categories below to give you an indication of the vast innovation and use case potential within the space. 

Payment Focused Altcoins

First and foremost, these cryptocurrencies’ primary aim is to provide a medium of exchange within the digital currency realm. Focusing on payment functionality, these digital currencies are akin to Bitcoin and often were created as a “better” version of BTC (through hark forks on the network). Some examples of this include Litecoin (LTC) and Bitcoin Cash (BCH). 

Protocol Focused Altcoins

Protocol focused altcoins are designed to allow developers to work on their blockchain network to create decentralized apps (dapps), smart contracts, and in some cases other cryptocurrencies. They provide space for innovation within the blockchain industry, and empower developers to learn and grow their blockchain understanding. Examples of protocol focused cryptocurrencies include Ethereum (ETH), Tron (TRON) and Neo (NEO). 

Privacy Focused Altcoins

As mentioned above, privacy focused cryptocurrencies provide users the opportunity to send private transactions that are entirely encrypted. While these networks often garner a bad name due to them being used for illicit activities, they are in essence not far from what Satoshi Nakamoto originally intended for Bitcoin. Each network uses slightly different protocols, however they all provide the means to send secure, anonymous transactions. Examples of privacy focused cryptocurrencies include Monero (XMR), Zcash (ZEC) and Dash (DASH).

Stablecoins

You’ve likely heard of stablecoins before. They are the digital currencies that are pegged to a fiat currency. Providing a stable market inside of what has become known as a highly volatile market (cryptocurrencies as a whole), stablecoins offer a hedge against market dips as well as an entry point for users who want to get a feel for the crypto industry. Examples of stablecoins include USD Coin (USDC) and Tether (USDT) which are both pegged to the US dollar, trading at a 1:1 ratio (i.e. 1 USDT will always be worth $1). Stablecoins also include cryptocurrencies pegged to the value of commodities such as gold and oil.

NFTs

NFTs (non fungible tokens) have had their fair share of mainstream media attention recently, especially after one NFT broke records when sold for millions of dollars. NFTs are actually unique crypto assets that cannot be used in the same way that other digital currencies can be. Each NFT holds unique characteristics that represent a one of a kind product, whether it be a piece of digital art, physical art, a house, or even a luxury handbag. These altcoins cannot be recreated, and hold all their transaction history (previous ownership) on a transparent blockchain. They also cannot be “spent” in the same way as other cryptocurrencies in that one an NFT is created, it has that purpose attached to it for life (unlike BTC which can be spent interchangeably).

CBDCs 

CBDCs (central bank digital currencies) are similar to stablecoins but are created and maintained by financial institutions like banks. These currencies’ value is pegged to the local currency, and allow countries to test the efficiency of digital currencies without the volatility. Many countries are in the development phase of CBDCs, however China is leading the pack having recently launched their testing phase. 

Utility tokens

Utility tokens are blockchain tokens that are unique to a particular platform. Many cryptocurrency projects have created utility tokens as a means of crowdfunding prior to their launch, while other projects create utility tokens to be used within the platform for goods and services. Typically, utility tokens have been ERC-20 tokens, and might allow a user access to a new level of a game or to a subscription of some sorts.

How to Get Altcoins

Having gained an understanding of altcoins, individuals eager to explore the thriving altcoin market can effortlessly leverage the capabilities of the Tap app. Tap offers seamless access to an extensive spectrum of cryptocurrencies, including notable names such as Ethereum, Litecoin, XRP, and an assortment of others. It's crucial to bear in mind that not all cryptocurrency wallets exhibit compatibility across the board. For instance, attempting to house an altcoin like XRP within your Bitcoin wallet or stow Tron within your Ethereum wallet would not work due to their incompatibility.

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As we explore the world of crypto assets, we take a look at the different types of crypto assets on the market and at the wide range of diversity in the new-age industry. As more people enter the market and start exchanging digital assets, the industry grows and expands to allow new variations.

Below we explore the vast diversity in the industry, from crypto assets used as money to ones that reward users for viewing a website. Each business offers a unique solution, and to navigate this we offer you guidance below.

What Are Crypto Assets?

The terms "crypto asset" and "cryptocurrency" can be used interchangeably. They both refer to a digital asset built using blockchain that can be transferred in a direct peer-to-peer manner. The first crypto asset to launch is Bitcoin, which entered (and created) the scene in 2009. Since then thousands of crypto assets have been created, each one with its own unique use case.

The Different Types Of Crypto Assets

While crypto assets might fall into one or more categories, each has its own set of rules and use cases. 

Payment-Focused

These crypto assets can be used to pay for everyday goods and services or as a store of value (in some cases). These include the likes of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), etc.

Stablecoins

Stablecoins are crypto assets that have their value pegged to a fiat currency or commodity. These crypto assets are designed to bypass the volatility synonymous with the crypto market. These include the likes of Tether (USDT) and USD Coin (USDC).

Privacy Coins

Privacy coins are digital assets that hide details of the transaction, such as the origin, destination and amount. These crypto assets offer untraceable monetary transfers. These include the likes of Monero (XMR) and ZCash (ZEC).

CBDCs

Central Bank Digital Currencies (CBDCs) are crypto assets built and maintained by banks. Used as digital currencies alongside the traditional currency, CBDCs are designed to provide a digital version of the local fiat to which the value is pegged. 

Governance Tokens

Common among decentralized finance (DeFi) protocols, governance tokens provide holders with a say in the platform and in future updates. 

Utility Tokens

Utility tokens will typically provide a service to the holder on the platform on which it was created. Commonly created using the ERC-20 token standard, utility tokens might represent a subscription on a platform or a use case specific to that ecosystem. 

Non-Fungible Tokens

Non-fungible tokens, also known as NFTs, are crypto assets that cannot be used interchangeably and instead hold unique and rare properties. Each NFT represents a singular function that cannot be changed.

How Are Crypto Assets Created And Distributed?

Before crypto assets are created the project's intentions are generally circulated through a white paper. In this white paper, the asset's tokenomics will be outlined which will cover how the asset is created and distributed.

Bitcoin, for example, uses a Proof of Work consensus which means that new coins are entered into circulation through miners solving complex mathematical problems. The network was designed to only ever have 21 million coins created, and new coins are slowly entered into the system each time a miner verifies and adds a new block to the blockchain. 

Ethereum on the other hand has no limit to the number of ETH that can be created. The platform is currently moving from a PoW to a Proof of Stake consensus, which alters the way in which transactions are verified, however, new coins still enter circulation through verifying transactions. 

XRP minted all its coins prelaunch and slowly release them into the system through a central authority while Tether creates USDT on demand. For each $1 sent, 1 USDT is created, which can later be removed from circulation should it be sold. 

The Future Of Crypto Assets

With the ICO Boom in 2017, the DeFi boom in 2020 and the more recent NFT Craze, crypto assets aren't going anywhere. With constant innovation and increasing adoption, crypto assets have become an integral part of the modern day financial landscape.

While mainstream adoption is on the rise, a few wrinkles still need to be ironed out. For one, regulatory bodies around the world are working toward creating legal frameworks in which these crypto assets can exist, while centralized banks are exploring whether CBDCs can co-exist with their physical counterparts. While the world seeks to figure these out, one this is for certain: crypto assets are here, and the industry is becoming bigger by the day. 

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Understanding what crypto trading pairs are is important for all levels of trading, whether new to the market and looking to buy cryptocurrencies or wanting to engage in advanced arbitrage strategies. 

While the concept has been around in the stock markets for a while, it came about in the crypto industry due to a number of exchanges only allowing bigger cryptocurrencies like Bitcoin and Ethereum to be purchased with fiat currencies. While other cryptocurrencies were available on the platform, they could only be bought by trading BTC or ETH. Hence, it became necessary for a relationship to be established in terms of value between the cryptocurrencies being exchanged for one another.

When it comes to investing in cryptocurrencies there are plenty of options available, it only makes sense that markets open allowing one digital asset to be traded for another.

Crypto Trading Pairs Explained

Every cryptocurrency has an established value against a fiat currency, while this will continuously change depending on the market conditions affecting it, the use of the same fiat will remain. Most sites default to present a cryptocurrency's value in USD, however, they also allow for changes to be made (to GBP, EUR, etc). This is referred to as a base currency.

A trading pair is when two cryptocurrencies can be traded against each other, as opposed to a cryptocurrency and fiat. For example, BTC/LTC, or ETH/DOGE. In order to acquire the one, the other will need to be exchanged. In this case, the base currency is now a cryptocurrency. 

If you would like to buy DOGE with DOT but the exchange does not have this trading pair available, you would need to exchange DOGE for BTC, and then buy DOT with the BTC. Unfortunately, this will incur more fees, illustrating the convenience of trading pairs. 

How Do Trading Pairs Work?

Exchanges typically allow you to compare costs between cryptocurrencies, i.e. how much Bitcoin you will need to pay for Litecoin. If you are unable to load your account with fiat, you can still trade using cryptocurrencies, depositing one and trading it for another. 

Trading pairs allow you to establish a cryptocurrency's value in terms of another cryptocurrency. 

Say you buy ETH/LTC, this means that you are buying ETH in exchange for LTC. LTC is then the base currency. If you were selling ETH/LTC, you would be selling ETH and accumulating LTC. Ethereum and Bitcoin are the most common base currencies, however, the bigger the exchange the more trading pairs are on offer. 

Before engaging in any trading pairs take a look at the fees and taxes associated with the trade on the exchange's website, as sometimes some cryptocurrencies can incur higher fees. 

In Conclusion

Trading pairs are when a cryptocurrency is valued against another cryptocurrency and capable of being traded for one another. Trading pairs provide an essential role in the crypto economy. These days there are hundreds of trading pairs on offer, allowing traders to make informed decisions, find better prices, and perform a greater number of transactions. 

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When exploring the world of blockchain and its endless possibilities, it’s likely that you’ve come across the term dapps. But what are dapps? In this piece we explore the concept, decipher their place in the industry, and look at several networks that currently support them.

What are dapps?

Decentralized apps, or dapps as they’re more commonly known, are applications that are built on top of peer to peer decentralized networks. Instead of being built on one computer, with one single entity in control, dapps utilize a network of computers based anywhere around the world. With multiple computers operating and maintaining the network, dapps are able to incorporate many streams of content consumption, be it providing content, trading or consuming it. 

The advantages of dapps

Compared to standard web apps, like Twitter or Uber, these apps can handle multiple users but only one authority has control over the backend of the app. Dapps provide a more decentralized and secure approach. So while Uber connects passengers to drivers through the app for a portion of the payment, dapps essentially allow the drivers and riders to connect directly, taking no payment for the connection.

Another advantage to the world of dapps is that all transactions are transparent and stored on the blockchain of the network it is built on. Dapps also need a token to operate, which enhances the security of both the dapp and the transactions taking place. Typically dapps are also open source, allowing other developers to view the code and further drive development in the industry.

The disadvantages of dapps

As with anything in life, there are also disadvantages. As the world of dapps is still in its infancy stage, the user base is relatively low. When it comes to blockchain based projects, the more users a network has the higher functioning the network is. Unfortunately, many dapps still have a relatively low user base decreasing the functionality, however that doesn’t speak for all of them. As the blockchain and crypto worlds continue developing and reaching wider audiences, both the usability and users will increase. 

Another disadvantage is the potential vulnerability to hacking. As most dapps are created using open source smart contracts, this leaves them open to potential probing from hackers. This isn’t a given, however it has happened in the past that hackers found weaknesses in the network and were able to conduct illicit activities through them. 

How many dapps are there?

According to a dapp monitoring website, State Of The Dapps, there are currently roughly 3,500 dapps in the industry. These are spanned across a wide range of networks, including the likes of Ethereum, EOS, TRON, NEO, Steem and more. The website further reports that over $257 million has passed through the dapps industry in just twenty four hours (at the time of writing). Dapps also cover a broad range of subjects, with dapps catering to industries like energy, exchanges, finance, gambling, games, health, identity, insurance, marketplaces, media, property, security, social, storage and wallets. The most widely of which are finance, security and exchanges.

A look into Ethereum dapps

The most widely used network to create dapps on top of, Ethereum has over 2,700 dapps built on its network. Ethereum was the first network designed to provide a blockchain platform on which developers could build their own decentralized applications. Ethereum was also the first network that allowed developers to create and execute their own smart contracts, an essential ingredient to the making of dapps. 

According to DappRadar, the three biggest dapps currently on the Ethereum network are DeFi projects and an exchange. Coming in at first place based on its current market cap is Uniswap, a defi protocol (exchange) that facilitates the trading of cryptocurrencies. Uniswap has an estimated 48,950 active users. Also dabbling in the world of DeFi, the second largest dapp on the Ethereum network is compound, a protocol that allows users to lend and borrow crypto. The third largest is MakerDAO, a smart contract that facilitates user interaction with the Dai stablecoin system.

A look into EOS dapps

Similar to Ethereum but with fewer transaction fees, the Entrepreneurial Operating System was designed to provide developers with a platform on which to build their blockchain based endeavours. As the second largest platform on which dapps are currently created, let’s explore the three largest dapps currently operating on the network. Coming in first place is Joule, a dapp which promotes financial inclusion and social change through determining the Global Popularity Index in real time. The next two entries both fall into the DeFi category, being Defibox and VIGOR.

The power of dapps

While many dapps are still in the experimental phase, there is also a large amount of money circulating in the industry and millions of users indicating a promising market. Thanks to dapps’ wide use range and the amount of innovation in the industry at present, the dapp industry is likely to continue growing and become a permanent fixture in many peoples’ lives, whether crypto inclined or not.

n the world of finance and technology, benchmarks are a vital tool for measuring performance and quality. A benchmark is a standard or point of reference used to evaluate the performance or quality of something, such as investment returns or the efficiency of software and hardware systems. This article will explore what benchmarks are, why they are used, provide examples, and explain how to use benchmarks to make more informed investment decisions.

What is a Benchmark?

A benchmark is a standard of comparison used to evaluate the performance or quality of something. In finance, benchmarks are often used to compare the performance of investments to a specific market index. For example, the S&P 500 index is a commonly used benchmark for evaluating the performance of a portfolio of stocks.
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Benchmarks are also used in the technology industry to evaluate the efficiency and performance of hardware and software systems. For example, a computer's processing speed may be benchmarked against industry standards to determine how well it performs compared to other computers on the market.

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Why are Benchmarks Used?

Benchmarks are used for a variety of reasons. In finance, benchmarks are used to evaluate the performance of an investment or a portfolio of investments. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.
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In the technology industry, benchmarks are used to evaluate the efficiency and performance of hardware and software systems. By benchmarking a computer or a software system against industry standards, developers can determine how well their product performs compared to other products on the market.
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Examples of Benchmarks
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There are many different benchmarks used in finance. Here are a few examples:
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1. S&P 500 Index - This is a benchmark used to evaluate the performance of a portfolio of stocks in the United States. It is widely used by investors as a measure of the overall performance of the U.S. stock market.
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2. Dow Jones Industrial Average - This is another benchmark used to evaluate the performance of the U.S. stock market. It is based on the stock prices of 30 large U.S. companies.
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How to Use Benchmarks

To use a benchmark, you first need to select the appropriate benchmark for your needs. For example, if you are evaluating the performance of a portfolio of stocks, you would select a stock market index such as the S&P 500 or the Dow Jones Industrial Average.
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Once you have selected a benchmark, you can compare the performance of your investment or product to the benchmark. If your investment or product outperforms the benchmark, then it is considered successful. If it underperforms, then you may need to adjust your investment strategy or product development.
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How Do Benchmarks Help You Make More Informed Investment Decisions?

Benchmarks help investors make more informed investment decisions by providing a standard of comparison for investment performance. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.

For example, if an investor's portfolio of stocks outperforms the S&P 500 index, then the investor can be confident that their investment strategy is successful. However, if the portfolio underperforms the S&P 500, then the investor may need to reevaluate their investment strategy.

Benchmarks also help investors identify trends in the market. By tracking the performance of a benchmark over time, investors can identify trends in the market and adjust their investment strategy accordingly.

Conclusion:

In conclusion, benchmarks are a fundamental tool used in finance and technology to measure performance and quality. They provide a standard of comparison that helps investors and developers evaluate the success of their investments and products.

Using benchmarks to evaluate investment performance and product efficiency can help you make more informed investment decisions. By comparing the performance of your investments or products to industry standards, you can determine whether your investment strategy or product development is successful or not.

Overall, benchmarks are an essential tool for evaluating performance and quality, and understanding how to use them is crucial for success in finance and technology.

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There’s no denying that the recent surge in Bitcoin adoption has largely been fueled by the incredible bull run. With mainstream media, large corporations, and more retail investors taking notice, many merchants have followed suit and added the original cryptocurrency to their list of payment options. As the market erupts, let’s explore what can you buy with Bitcoin exactly.

Bitcoin’s Surge In Adoption

While 2020 was a challenge for most industries, the crypto markets saw unbelievable gains. Despite the universal market destruction that was witnessed across the board, Bitcoin flourished from $3,870 in March to an all time high of $20,000 by the end of the year. Just one week into the new year and the cryptocurrency had doubled reaching $41,515. By 21 February the cryptocurrency was worth $58,330, almost triple the previous all time high.

The extended bull run was due to large firms moving their company reserves from fiat to BTC, with Tesla bringing a lot of media attention to both this pattern but Bitcoin in general. As more people sought to enter the market, more vendors, businesses and retailers sought to offer it as an alternative payment option. According to a study conducted by HSB in 2020, 36% of small-medium businesses in the US accept Bitcoin. This is also likely to triple in coming months.

What Can You Buy With Bitcoin?

As you’ll see below, almost everything. While not every store offers Bitcoin payments, there are plenty of services which offer gift cards for such stores that can be bought with BTC. Where there’s a will, there’s a way. Let’s dive into all the things available for purchase with Bitcoin. To make things a bit simpler, we’ve broken it down into the following categories:

Tech

Consumers can purchase everything from a VPN service (ExpressVPN) to cloud storage space (Mega.nz) with the cryptocurrency. Microsoft, Wikipedia and AT&T also grace the list, having accepted Bitcoin as a payment method for some years now. Unsurprisingly, the gaming platform Twitch also features crypto payments (they disabled them and then brought them back). There is even a digital library in San Francisco providing the world with “universal access to all knowledge” that operates off of Bitcoin donations.

Sports

Tech you can understand, but sports? Yes, that’s right. A number of large sports clubs around the world have chosen to embrace the digital currency movement. In America, the most famous to do so are the Miami Dolphins and the Dallas Mavericks, while across the pond in the United Kingdom the following football clubs are all in: Tottenham Hotspur, Crystal Palace, Brighton & Hove Albion, Southampton, Leicester City, Newcastle United, and Cardiff City. S.L Benfica, one of the oldest and most popular sports clubs in Portugal, has also decided to accept Bitcoin for everything from merchandise to game tickets.

Retail

Most famously the American retailer dealing with home decor, Overstock, is one of the largest retailers to accept Bitcoin. Home Depot and Whole Foods also joined the ranks through the Winklevoss Flexa spending app ‘Spedn’ that allows for seamless crypto payments.

Then there are companies that provide a middle ground enabling you to purchase goods from stores that don’t necessarily accept the cryptocurrency directly. This includes Purse.io that is most famously used for Amazon purchase with Bitcoin, and Gyft, a company that sells gift cards for popular stores in exchange for crypto. Gyft can be used for everything from Starbucks to Sephora to iTunes.

Travel

You’d be surprised how many travel companies are now offering purchases with cryptocurrencies. One of the first to cross over was Latvia’s national airline, airBaltic, which announced in 2014 that they would be offering the payment option. Since then a number of leading travel companies including Expedia, CheapAir, and Destinia have followed suit. Alternatively, you could purchase a trip to space with Richard Branson’s Virgin Galactic. There is even a specially designed travel company catering solely to Bitcoin shoppers, Bitcoin.Travel.

Food

Another industry to embrace Bitcoin payments with a number of top fast food chains embracing the crypto life in various corners of the globe. Multiple Subways around the world, Pizza Hut in Venezuela, 40 international locations of Burger King, and KFC in Canada have all joined the forward driven club.

BTC Tapping Into The Future

And then of course just about anything in Japan. If you’re looking for goods to purchase with Bitcoin, you can usually see from an online stores’ homepage if it is an option, or in a brick-and-mortar store there will usually be QR code at the checkout counter indicating that Bitcoin is accepted there. If you’ve found that Bitcoin payments are definitely for you, buy, send and spend BTC directly from your Tap app. What can you buy with Bitcoin through your Tap app? Just about anything thanks to the seamless payments integration technology.