I noticed that a lot of people are still confused when the term ‘Altcoin’ is mentioned or used. Due to this problem, I decided to make this post to look at the meaning and try to give you a general overview of what you need to know about this topic.
What is Altcoin
I know a lot of people have been wondering what the real definition of Altcoin is. Luckily it is one of the most straightforward answers. I may define an Altcoin as any other cryptocurrency that is different from Bitcoin. It is as simple as that. It means that all Bitcoin alternative are classified as Altcoin.
What shocks me is that a lot of people only know bitcoin as the only Cryptocurrency. What they fail to understand is that there are a lot of good Altcoins with real-life use cases. Therefore, it would be so wrong to write off altcoins completely. I firmly believe that there’s a huge future for the Altcoins.
The main aim of the invention of altcoins was to compensate and complement the defects of the Bitcoin network. Bitcoin remains the father of Cryptocurrency and has the largest user base. But altcoins are doing well in covering the weakness of the Bitcoin network such as Transaction fee, speed, and scalability.
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Why buy an Altcoin?
Here comes one of the most asked questions in Cryptocurrency. When it comes to buying Cryptocurrency, it is always good for the user to critically analyze the currency that he/she wants to buy. A lot of projects has no use case, and it is always advisable for you to skip such projects without thinking twice. But if you have some spare money to gamble with, then you can go ahead with the transaction.
Also, remember that there is a lot of shilling in the Altcoin market and the lack of strict regulations make it difficult for people to identify scammers quickly.
Let’s head back to the main reason of why you should buy Altcoin.
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Some Altcoin with a good use case always has potentials. When you spot such coins, you can throw in your spare money. Buying altcoin can also be the fastest way to multiply your investment because it is very easy for an altcoin to move over ten times the initial price. Some good projects carry out airdrop, and the airdropers always dump immediately after listing, buying from these dumpers can be a very effective way to purchase a large amount of coins at a very cheap price.
We might have missed out when Bitcoin was around a dollar, but some of these projects have the potentials of moving 100X, and it would be nice if you can get some of these tokens at a cheap rate.
Things to pay attention to
It is important to investigate whether an altcoin has the potential to grow or not. Always look at the use case and the community behind it.
Always check the roadmap of the project and compare how well their goals have been achieved.
Also, check if the white paper has potentials and try to evaluate if it will be fruitful.
Don’t forget to study the team behind the Altcoin that you are planning to buy.
Check their former abilities and look for any fraud traits among them.
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Do your research (dyor)
This is the most important part of the whole blog post. It is crucial always to do your research in any given Altcoin first. Never base your purchases on hypes or the current price of the coin. It might just be a fake pump that might get you trapped.
Also, try to reduce your risk by investing in coins that you have confidence in the longer term and with a market cap of at least 100 Million USD.
Try to buy as cheaper as you can. If you can buy many units of a cryptocurrency for a few tens, there is only one between them, which over time yields a lot of money to get the most out of it.
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Is Cryptocurrency the future?
A lot of people have different opinions when it comes to this. The price has never been stable in the short existence of Bitcoin, and the trade-in it remains speculation. Since there is no regulation, it might be hard to get the full backings of major governments around the world.
Although Bitcoin was the first Cryptocurrency in the crypto market, there is a chance that an Altcoin has come or will come to send the crypto king off its throne. All new alternative currency has its improvements, and only time can truly tell us what they have in stock for us.
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NOTE: ALL THE IDEAS HERE ARE MY PERSONAL VIEWS AND THEREFORE IS NOT ANY FORM OF A FINANCIAL ADVICE. I ADVICE THAT YOU DO YOUR OWN RESEARCH BEFORE GETTING ANY PARTICULAR COIN/TOKEN.