Welcome to Lesson 8 of the PROP365 Academy – Crypto Fundamentals: Types of Cryptocurrencies. In this lesson, we explore the answer to a fundamental question in the crypto world: what are altcoins? Bitcoin started the decentralized digital money revolution, but it wasn’t long before other cryptocurrencies emerged. These alternatives, known as altcoins, offer innovations, improvements, or simply different visions for blockchain technology.
While Bitcoin is the original cryptocurrency, altcoins represent the evolution and diversification of the space. Many cryptos aim to solve Bitcoin’s limitations—such as transaction speed, privacy, or programmability—while others introduce entirely new features. Investing presents both opportunities and risks due to their varied liquidity and adoption levels.
Common Types of Altcoins
Here’s an overview of notable altcoins that have shaped the crypto ecosystem:
1. Litecoin
- Launched: 2011
- Often called the silver to Bitcoin’s gold
- Features faster block generation and quicker transaction confirmation
- Created by Charlie Lee, an ex-Google engineer
2. Ethereum
- Launched: 2015
- Enables smart contracts and decentralized apps (dApps)
- Uses Ether (ETH) as fuel for its network
- Split into Ethereum and Ethereum Classic after 2016 DAO hack
3. Zcash
- Focused on privacy and selective transaction transparency
- Uses ZK-SNARK zero-knowledge proofs
- Describes itself as the HTTPS of digital money
4. Dash
- Launched: 2014 (formerly Darkcoin)
- Prioritizes privacy and instant transactions
- Utilizes a two-tier network and features like PrivateSend and InstantSend
5. Ripple (XRP)
- Designed for banks and real-time global settlement
- Doesn’t require mining
- Offers low-cost, instant cross-border transactions
6. Monero
- Launched: 2014
- Known for untraceable transactions using ring signatures
- Strong focus on decentralization and user privacy
Best Altcoins to Buy Now?
The best altcoins to buy depend on your investment goals. Are you interested in smart contracts? Ethereum might suit you. Do you value privacy? Consider Monero or Zcash. Interested in speed and cost efficiency? Litecoin or Dash may be good picks. Before investing, always research market capitalization, use case, and developer activity.
Summary: Investing in Altcoins
Altcoins are an essential part of the crypto ecosystem, each offering unique features and use cases. From privacy coins like Monero to enterprise solutions like Ripple, understanding the types of crypto helps you make smarter investment decisions. Now that you know what they are, explore the next lesson or get started with trading securely through PROP365.
Take the next step in your crypto journey—start exploring crypto safely with PROP365.
