Altcoins
Altcoins

Altcoins-what are they?

You almost certainly have heard of Bitcoin. It is the original crypto currency. 

All other coins are “Alt” coins, also known as Alternative coins.

CoinMarketCap.com lists all Altcoins with details such as the exchanges they listed on, Market Cap, the volume traded, current price and circulating supply.

Blockchain-based projects (Altcoins) have “tokens” or “coins” in a similar way to share markets have shares.

When trading altcoins against BTC, they use “Sats” rather than dollars. Using Sats against dollars can make the trading more volatile as both coins can change in value relative to each other. 

When BTC rises, Altcoins tend to decrease in value and vice versa.

As BTC dominance grows and alt dominance decreases, we see a shift in the market. 

History has shown us that when BTC is in a stable zone. Altcoins have some of their most notable moves of price stabilisation. This stabilisation is because the market perceives it has scope to move while BTC is inactive. 

Institutional professionals exhibit a higher sense of confidence when BTC is steady, as Bitcoin is approximately 50% of the entire crypto market value.

Many altcoins increase in value based solely on speculation.

But most of these coins have operating products using blockchain technology. These products help determines the Altcoin’s value. As an investor, you need to chose which one suits your needs and risk profile. 

Like shares have Initial Public Offerings (IPOs), Altcoin projects typically have an Initial Coin Offering (ICO). In these ICOs, coins can be bought by investors before they are listed on the exchange. Initial Coin Offerings work similarly to the way IPOs work in the share market.

Altcoins-what are they? Summary

Altcoins are an option to increase your profits in the Cryptocurrency markets. They offer a cheaper alternative to the more conservative market such as stock markets or forex. They are also cheaper than the major cryptocurrency coins such as Bitcoin and Etherium. But like all investment opportunities, you need to do your research and understand the market you are about to enter. You can learn more about crypto currencies at Market Mentor, the number one site for learning everything you need to be successful. You will quickly learn about Altcoins-what they are.

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