What are Altcoins?
Altcoins are all cryptocurrencies other than Bitcoin. The word altcoins refer to alternatives to Bitcoin. There are more than 2000 altcoins in circulation. Some of the popular altcoins are Ethereum (ETH), Bitcoin Cash (Cash), Monero (XMR), Cardano (ADA), Ripple (XRP), and Dogecoin (DOGE).
Are Altcoins a Good Investment?
New altcoins can offer much higher percentage gains. However, they are also much riskier and have far less liquidity than Bitcoin. Historically, some popular altcoins gained despite a slump in Bitcoin prices. So investing in popular altcoins can help reduce the risk of your crypto investments. That said, no cryptocurrency—including Bitcoin—is a safe investment.
|Lesser liquidity||High liquidity|
|Some have technical applications||Mostly a digital asset|
|Combined market cap of USD 1+ trillion||Market cap of USD 1+ trillion|
|Faster transactions||Supports upto 5 transactions per second|
- How to buy and sell altcoins?
- You can buy and sell altcoins just like Bitcoin. Altcoins can be brought in exchange for fiat currency or by swapping Bitcoins.
- Where to store altcoins?
- You can store altcoins in your crypto wallet.
- How to evaluate altcoins for investment?
- There is no sure way to evaluate an altcoin but a general rule is to look at the innovation it brings to the blockchain ecosystem.
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