Jul 6, 2017

Getting started with Altcoins


Altcoins, Bitcoin, Ripple, Zcash, NEM
some of the currently most popular cryptocurrencies

Sure you've heard of Bitcoin, but have you heard of the other 900 or so cryptocurrencies? If not, then perhaps it's time for you to check out this website. CoinMarketCap is an excellent place to expose yourself to currencies that you have never seen or heard of before.

CoinMarketCap.com as of July 6, 2017
Clicking into each one of these will give you all you need to get started with the coin: markets, official dev announcement boards, forums, block explorers, price history, etc.

Nonetheless, these other coins besides Bitcoin are considered "altcoins". These coins are riskier, but hold a higher investment return than Bitcoin, as most of these coins are a lot younger. Each altcoin incorporates a new innovation or a combination of blockchain techniques. Some of which are revolutionary, and some of which are nearly exact copies of the original Bitcoin or Litecoin chain. Most of these which can be mined and traded just like Bitcoin, although mining algorithms may vary.

If anyone ever told you that the price of Bitcoin is very volatile, you should show them the altcoin market. In the world of crypto finance, the price of Bitcoin is the most predictable. Each altcoin has its own set of factors that can affect its price, but one factor that every altcoin share is the price of Bitcoin itself. The general trend is that when Bitcoin's price falls, the total market cap of every coin will also fall, partially because the value of many of these altcoins depends on the altcoin to Bitcoin to bank note conversion rate. There are exceptions of course, Tether, for example is "tethered" to hard currency so that it is not as volatile as most other crypto.

The key to success in altcoin trading is to know the technology behind the coin you are investing in, like actually read the whitepapers and the developers' future plans for the coin. If the technology or innovation that an altcoin provides looks like something that will last at least 5 years, it might be a worthwhile investment.

To buy an altcoin, check the list of markets that the coin is available from on coinmarketcap. Make sure that you also research each of these exchanges and pick the safest one that does not demand too much of a transaction rate.

Once you have a solid trading plan or strategy, go ahead and trade your Bitcoins into the altcoin(s) of your choice.

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