what is altcoins
Today, Bitcoin is not the only cryptocurrency with which users earn. There are alternatives that are described by the General term Altcoin. Thus, answering the question of altcoins, we can say that it is any cryptocurrency, except Bitcoin, for example, Ripple, Litecoin, Ethereum.
Altcoins what are these simple words?
The digital market is only 9 years old, and only in the official ratings of cryptocurrencies there are more than 1600 types of coins.
Many prices start from just a few cents.
Most altcoins are accepted in the listing in different exchanges.
The number of trading pairs with altcoins exceeds 11 thousand.
Such a situation makes it possible not only to invest, but also poses a problem for investors — how to guess the growth of the price of crypto-currencies on the exchange and bypass the bad altcoins.
Hundreds of digital currencies differ from Bitcoin:
methods of distribution of the coins;
more versatile programming languages;
capitalization of the funds invested by investors.
That is, Alt coins differ not only from Bitcoin, but also among themselves.
However, the vast majority of altcoins are actually copying bitcoin parameters. But they do not have a high value as an alternative. And, often, do not even offer something useful.
For example, if an altcoin, i.e. an abstract cryptocurrency, has a larger issue than bitcoin. As a result, this means that each coin is worth much less money — a fraction of dollars and even rubles, so available to any user.
altcoins that this
When altcoin finds blocks faster, which means mining, it requires more evidence to achieve a reliable level of security. The advantage of altcoins, whose history has little time, in the requirements for equipment-to work quite small farms.
Thus, the main part of the altcoins do not have benefits in comparison with bitcoin, in addition to price in dollars.
Their hashing power is lower.
Development teams are small.
Infrastructure is weak.
Community support is modest.
Therefore, altcoins are called more risky alternatives than bitcoin.
Although, many depositors have benefited from altcoins for years. At the same time, only a few crypto-currencies have retained their value in dollars. As a result, most of the altcoins have come and gone, and dozens of species can be seen as outright scams.
Features and differences of altcoins from each other
The digital world is growing, new cryptocurrencies are emerging, and many experts are advising people to diversify their crypto portfolios. Offering to invest in the maximum possible number of Altos of cryptocurrency. The truth is that there are many UPS and downs in the market, but this also applies to Bitcoin, which regularly demonstrates volatility.
As a result, the variability of altcoins is very high, but there is a pattern — an asset that can increase by hundreds and thousands of percent during the year, in the case of force majeure will easily fall by 2-3 times.
The cryptocurrency market phases are formed as in traditional instruments — after the decline, there is a pause and consolidation. As a result, there is an important event, it gives prices a push and develops a new impetus.
Comparing altcoins with bitcoin, it is safe to say that secondary assets are more risky and volatile. Mainly because of the low market capitalization, which tempts clever traders to manipulate prices.
Some participants sent large amounts of cheap cryptocurrencies, create marketing buzz, put the video on high earnings.
Such reviews force users to buy altcoin and lead to higher prices.
As soon as the asset rate increases significantly, the initiators sell their coins and get a huge profit.
These cryptocurrency tricks are known as pump and dump altcoins, bring losses to greedy traders or inexperienced investors.
Thus, in order not to lose money on transactions with cryptocurrency altcoins, users should focus on long-term deposits in coins with huge potential and stable behavior.
In short, these are altcoins from TOP-100 with high liquidity, behind which there are strong communities and many developers actively improving the source code.
How to choose the right coins among altcoins?
Altcoins with the greatest potential, it is also the so-called most secure cryptocurrency, which are included in the TOP 10 rating:
Ethereum takes the second place in terms of capitalization. Opinions about the importance of altcoin were divided. Some consider it the most authoritative after bitcoin, others put in third place. Ethereum cryptocurrency is built in a stable system and it is used as the basis for other coins. The Ethereum blockchain will organize most of the ICO.
The coin Litecoin, an alternative investment to bitcoin, has a very simple secret-the technology of cryptocurrency is quite different from the prototype. The cost ranges from 1 to 2% of the Bitcoin exchange rate, the average price is about $ 100. This is much closer to the value that a reasonable person expects from a digital currency. It Litecoin part of investors puts on the 2nd place after Bitcoin.
The bitcoincash cryptocurrency is an altcoin created in 2017, when bitcoin split into two branches due to the problem of the limitation of the block processing transactions. This has led to the altcoin Bitcoin Cash being a digital currency offering faster transfers. In addition, for which members of the Bitcoin community voted. It is too early to expect special benefits from the coin, but BitcoinCash has a high market capitalization. Some players believe that the potential of this altcoin will be revealed.
The path of Dash or Monero coins is untraceable, including inside the cryptocurrency blockchain. Absolute secrecy has attracted the attention of investors to the assets.
Other significant altcoins include Dogecoin, Namecoin, Nxt, Peercoin and a few more.
Full lists of altcoins are present on the websites-aggregators Coinmarketcap, Cryptocoincharts, Coingecko.
On these resources, users can see what the altcoins in the TOP-100 coins by market capitalization, view their historical data. For cryptocurrencies, there is information about the leaders of growth and fall, lists of new added coins are published.
Popular Altos in cryptocurrency are good money in the long term. Owners, it is important to know that such altcoins are listed on many crypto exchanges and exchanged for Fiat money through online services.
Rating and altcoins prices at exchanges
On Coinmerce and the like have the opportunity to weigh altcoins from the top 100 according to several parameters:
price and liquidity;
recognition from the stock exchanges.
If you go to the altcoin tab, you can see the chart, a list of exchanges, a link to the official resource. The site of each altcoin contains basic information and instructions on how to work with the wallet.