What are altcoins?
Altcoin short for Alternative coin is a term used to describe cryptocurrencies and digital assets other than Bitcoin. Altcoins are similar to Bitcoin. They are cryptocurrencies that use a technology called Blockchain, which allows secure peer-to-peer transactions.
Although the concept of Blockchain was invented by the creator of Bitcoin, Bitcoin does not have a monopoly on Blockchain technology. Other people can create their own cryptocurrencies and their own Blockchains and that is generally what cryptocurrency is.
**For example, some of the biggest Altcoins you may have heard of include Ether, Ripple, Bitcoin Cash, Litecoin, and Monero.
Distinguishing types of Cryptocurrencies in the Crypto market:
In general, there are three types of Cryptocurrencies in the Crypto market:
Bitcoin
Bitcoin is a cryptocurrency that has been in existence since 2008. It is considered the first cryptocurrency that has seen tremendous growth in recent years.
Altcoin
This altcoin was invented by slightly modifying the applications of Bitcoin and each has its own Blockchain.
Token
Tokens are cryptocurrency assets used across Decentralized Applications. They are built on Blockchains of Bitcoin or Altcoins like Ethereum, NEO,…
Where should I buy Altcoin?
We will explore the best platforms to buy Altcoins today
Coinbase: Coinbase is the best Altcoin exchange for beginners. Cryptocurrency exchanges offer maximum security of money and financial information, variety of cryptocurrencies and convenience.
Binance: is one of the most popular exchanges in Vietnam. Binance will be a good choice for you to start Altcoin investing as well as many other cryptocurrencies like Bitcoin and Tokens.
Some other exchanges: Kucoin, MEXC, Gate,…
Benefits of investing in Altcoin?
Cost savings: Bitcoin transactions have high fees and can take a significant amount of time to process, so some Altcoins are designed to have lower fees and faster processing times.
Growth Confidence: Bitcoin's growth from $0 to $6100 has led many to believe that the Altcoins will grow dramatically in the way that Bitcoin has exploded.
Easier mining: Bitcoin mining will be limited over time. However, Altcoin has continuously improved mining channels from Mining to Staking while still maintaining mining speed.
Lower price than Bitcoin: Bitcoin has achieved quite a high value compared to small-cap investors, Altcoin investment will help small-cap traders more easily access the market.
Alcoin
Risks when investing in Altcoin?
Increased volatility risk: Altcoins with small market capitalizations will face the risk of market manipulation and sharp market volatility.
Fraud: There are many projects that were built and then had a Rug Pull – DEV withdrew all investors' money and fled.
Limited Liquidity: For Altcoins that are not yet widely available. There are not too many investors buying/selling, which limits the liquidity of those Altcoins
Epilogue
Altcoins are the preferred choice after Bitcoin to catch the cryptocurrency investment boom in recent years. With the benefits of investing also come risks. Above all, before deciding to invest in Altcoin, you must take the time to carefully study the project to avoid losing money.
Above is information about Altcoin and How to distinguish cryptocurrencies in the Crypto market.