What is Altcoins?

MetaversePlanet March 12, 2024

0 1 minute read

Altcoins, essentially, refer to virtual currencies other than Bitcoin. Presently, the cryptocurrency market is home to over 2000 altcoins, each with its distinct characteristics and value. The value of an altcoin is primarily determined by the progress of its associated projects and its future potential.

Conducting thorough research is imperative when investing in altcoins, as the market contains numerous so-called ‘scams’—altcoins lacking any functional value or promise. This is akin to purchasing shares in a company.

Many cryptocurrency exchanges list altcoins that have surpassed demand expectations and possess adequate market volume.

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When buying altcoins, remember that you are investing your ‘money’ in this business.

Numerous altcoins lack substantial technology, are backed by inexperienced teams, and are based on fraudulent projects. By these standards, nearly 90% of altcoins fall into the category of worthless endeavors.

Despite this, these projects still manage to attract millions of dollars in investments from uninformed investors. In the long term, the demise of such projects is inevitable.

Therefore, it’s crucial to approach investing with caution and steer clear of market commentators who attempt to manipulate investor behavior.

Top 5 altcoins by market cap and their function:

Ripple is a communication protocol designed for transferring money via the internet.

Ethereum serves as an open-source, blockchain-based computing platform and operating system featuring smart contract functionality.

Bitcoin Cash operates as a peer-to-peer electronic cash system over the internet.

EOS is a platform established for the development of decentralized applications and is considered a major competitor to Ethereum due to its functionality and advantages.

Stellar is an open-source platform developed with blockchain technology to facilitate cross-border payments, regarded as a significant rival to Ripple.

Where can I buy altcoins?

Just like Bitcoin, you can purchase altcoins from both domestic and international cryptocurrency exchanges.

If you’re planning to hold an altcoin for the long term, it’s advisable to transfer it to your personal wallets and offline storage solutions after buying it from any exchange. Maintaining Bitcoin or altcoins on exchanges for extended periods is not recommended due to potential issues and attacks that could arise on the respective exchange.