What are altcoins?
‘Altcoins’ is the term given to the hundreds of digital currencies that have launched in the last couple years. Today, new digital currencies are launched every day. Some of these altcoins emulate Bitcoin as peer-to-peer digital currencies, while others represent application tokens for dApps built on the Ethereum blockchain.
What are altcoins used for?
Altcoins serve a wide variety of functions. They are typically used as tokens for very specific applications. The owner of these tokens may hold on to them as an investment or use these tokens to perform a function within the application.
An example of this is Filecoin, one of the world’s largest token sales to date. Filecoin is a decentralized application built on the Ethereum network. Users will be able to exchange their unused computer storage for Filecoin’s token.
How do I buy and sell altcoins in Canada?
In Canada there are a few options for buying and selling altcoins.
Online Exchange: If you want to buy or trade altcoins at the best avialable rate, you‘ll want to use an online exchange like Coinsquare. Exchanges act as an escrow by storing altcoins and fiat currency on behalf of their customers. Here you can make your own orders to buy or sell altcoins at the best rates with the click of a button. On exchanges, fees and the spread are low, however you are required to submit personal information like your address to comply with Canadian regulations. Some altcoins are only available on specific exchanges. While you can find the most popular altcoins on almost all exchanges, some of the newer or more obscure altcoins can only be found on certain exchanges.
Gift Cards/Voucher: This is another easy method to buy altcoins. In Canada you can use cash or debit to buy a Flexepin voucher at thousands of retail purchase locations. These vouchers can be redeemed on exchanges like Coinsquare for altcoins. These voucher cards tend to charge relatively high fees.