Altcoins as an Alternative Crypto Investments

3. Decentralized Finance (DeFi)

Altcoins with this types are usually has function in Decentralized Finance (DeFi) Application as a governance token. Decentralized Finance has grown ever since Ethereum introduced their smart contract technology. For examples of this altcoin types are DYDX, UniSwap.

4. Layer 2

Layer 2 are created as an alternative solution for other blockchain networks. This types of altcoin assets are built based on their parent blockchain, It’s have a function to improve the transaction capabilities of it’s parents blockchain by providing faster transaction speed and lower fees.

Example of this Altcoin types are MATIC (Polygon), and ImmutableX (IMX).