What Are Altcoins and Should You Invest In Them?

 Altcoins are cryptocurrencies that are not Bitcoin. Some people say they can be an excellent investment opportunity, but others warn against them. This article will break down the basics of altcoins and help you decide which way to go based on your financial goals.**

An altcoin is a term to describe any cryptocurrency other than bitcoin (BTC). There are more than 10,000 different altcoins in existence today. Some being major players like Ethereum (ETH) while others have all but disappeared into obscurity like Litecoin Cash (LCC). It's important to note that many of these coins have no inherent value outside of their tradeability. So it's essential for investors to do their research before jumping in headfirst.

1. What Are Altcoins:

Altcoins, or alternative coins, are terms given to any cryptocurrency that is not Bitcoin. It may seem like a straightforward answer but there's much more detail involved in answering this question. One of the first things you need to know about altcoins is that they are what give blockchain technology its power. Blockchain technology created by Bitcoin allows for decentralized transactions without using an intermediary such as a bank. This means that each transaction can be verified on the blockchain ledger without having to go through a financial institution.

Altcoins are more than just a fad. In fact, they're the future of cryptocurrency and your investment dollars should be going there instead of Bitcoin or Ethereum. Why? Well, unlike Bitcoin and Ethereum, altcoin prices have been steadily increasing over time. This means you'll get a better return on investment if you invest in an altcoin today; rather than buying Bitcoin or Ethereum yesterday. Plus with so many new ICOs coming out every day, there's really no telling what could be next to shoot up in price!

There are over 10,000 different types of cryptocurrencies out there right now with new ones in development every single day!

2. Should You Invest In Altcoins:

A lot of people are asking themselves this question. There is a lot of misinformation out there about what cryptocurrencies are and how they work. But the answer to one simple question may be all you need to decide whether or not you should invest.

Do you want to make money? If so, then yes! The cryptocurrency market has grown exponentially over the last year with no signs of slowing down. Now is as good a time as any to buy some altcoins before their value skyrockets even higher than it already has. Cryptocurrencies can increase your portfolio's diversification since cryptocurrencies have historically shown almost no price correlation with the U.S. stock markets; unlike other assets in a traditional investment portfolio such as bonds and stocks; which are highly correlated in most cases too large increases or decreases in the equity markets.

The cryptocurrency market is a constantly changing space. And it has been growing exponentially in the last year alone, showing no signs of slowing down anytime soon! With new altcoins being added to exchanges practically every day, you might be wondering how you can invest in this exciting space? Here are some tips on investing in altcoins:

  • Don’t go all-in with your investment
  • Do your research before investing
  • Make sure there is a good community behind the project
  • Invest if you believe in the team working on your altcoin

3. What are the popular altcoins:

The top 5 altcoins based on their market capitalization are as follows: Ethereum, Cardano, Binance Coin, Tether & Ripple.


1. Ethereum (ETH)

Market cap: Over $461 billion

Ethereum is a decentralized platform for applications that run exactly as programmed; without any chance of fraud, censorship, or third-party interference. Ethereum can be used to codify, decentralize, secure, and trade just about anything. Be it voting rights, domain names, financial exchanges like stocks and bonds, and much more. It's like the internet was supposed to work according to its original design - where people were equal on the web; free from censorship; able to use their talents to produce freely whatever they wanted with no strings attached.

Ethereum, the most famous altcoin, was trading at $11.22 in August 2016 and in just five years it's rose to over $3900.


2. Cardano (ADA) 

Market cap: Over $91 billion

Cardano is a decentralized public blockchain and cryptocurrency project.

It provides a platform for sending and receiving digital funds, secure smart contracts, and decentralized applications. Cardano was designed to solve the three major problems with existing cryptocurrencies. Those are scalability (speed), security (hacking), and interoperability (the ability to work well with other cryptocurrencies). It also offers an ethical framework that can be used by businesses as they develop their own solutions.

Cardano was trading at $0.04 in August 2019 and in just 2 years it's rose to over $2.84.

3. Binance Coin (BNB)

Market cap: Over $83 billion

Binance Coin #BNB is the cryptocurrency coin that powers the Binance ecosystem. It is the cryptocurrency of Binance, one of the largest cryptocurrency exchanges in the world. It was created to serve as a form of payment for transactions on the exchange. Created by Changpeng Zhao and led by himself, this crypto-exchange has experienced phenomenal growth in just under 1 year. From being an ICO to capturing 20% market share in less than 6 months. To know more about Binance and Binance coin, visit here.

Binance Coin was trading at over $27.0 in August 2019 and in just 2 years it's rose to over $497.


4. Tether (USDT)

Market cap: Over $67 billion

USDT stands for Tether, which is a cryptocurrency that has its value linked to US Dollars. It was created in 2014 by the company Tether Limited and it's backed up by the reserves of real money. The idea behind this coin is to be an alternative to national currencies like the dollar or euro. For example, if you're living in Venezuela where hyperinflation is rampant; with USDT you don't have to worry about your savings being worth nothing tomorrow because all the coins are pegged at a 1:1 ratio with fiat currency. One of the main advantages of using this type of crypto-cash instead of traditional ones like dollars or euros is safety against inflation.

Tether is almost always trading at around $1.00 since it's directly linked to USD.


5. Ripple XRP

Market cap: Over $63 billion

The Ripple XRP is a digital asset. It's one of the newest cryptocurrencies/altcoin on the market and has been steadily gaining popularity over time, with some analysts predicting it could eventually overtake Bitcoin as the #1 player in this space.

"Ripple" was created by Canadian company Ripple Labs Inc., which specializes in developing blockchain technology for cross-border payments. Unlike other cryptocurrencies, Ripple does not use mining to create new coins. Instead, all 100 billion existing tokens were created when it first launched back in 2012. The company then distributed 55% of that supply to investors who backed them financially - giving them more than enough capital to survive without having to rely on mining revenues or any sort of initial coin offering (ICO) funds from outsiders.

Ripple was trading at over $0.007 in September 2016 and in 5 years it's rose to over $1.36.


In Conclusion:

Altcoins are a great way to diversify your portfolio and hedge against risk. If you're interested in investing, here's where to learn more about altcoin investments. Get started with the basics by reading our introduction post on what is an altcoin? Or jump into some of these other posts that provide tips for beginners like how to buy Bitcoin or find out which exchanges have the best trade volume. You can also check out this list of top 5 coins everyone should invest in if they want exposure to cryptocurrency market caps without having to research every single coin individually!

All our items are hipster-friendly with trendy designs that make it easy to show your love for cryptocurrencies while looking stylish at the same time!

If you want to be ahead of the curve, we've got some awesome cryptocurrency clothing lines with t-shirts, hoodies, tank tops, hats, and even laptop sleeves! Head over here now to get FREE shipping and 10% off on your first order.

* The prices listed are true as of Sep 2021.

** This blog should not be considered as financial advice. Please do your own research before investing in crypto.