Though Bitcoin is by far the most popular cryptocurrency on the market, it is not the only one. There are hundreds, even thousands of alternative cryptocurrencies that all differ in type, purpose in value.
These alternative cryptocurrencies are shortly called Altcoins. Currently the most popular amongst them are Dogecoin, Ethereum, Litecoin and Ripple.
In principle, they all work similarly to Bitcoin, with small system differences. In this piece, we will discuss the importance of Altcoins and their potential investment value on the current market.
Why do Altcoins Matter?
Over the years, Bitcoin has become almost synonymous with the term ‘cryptocurrency’. This has led to the generalization of all other currencies, putting them into the single category of Altcoins.
They are referred by this name since all of them are created in mind to replace or surpass the existing Bitcoin platform. Though they aren’t as widely acknowledged as Bitcoin, Altcoins can be a very profitable investment.
Due to not being as popular, they are lower in price and much less competitive, which makes them a great choice for beginners looking to dive into the cryptocurrency market.
Besides that, they offer alternative commodities compared to Bitcoin and are developed to specifically emphasizes some of the features Bitcoin lacks.
For example, cryptocurrencies like the aforementioned Litecoin are developed with a much higher currency of units, while Ripple and Dogecoin are created to streamline inter-currency payments and make them more secure.
Altcoins matter in that sense that they give Bitcoin healthy competition and drive the crypto market forward.
Should I invest in Altcoins?
As we’ve mentioned before, Altcoin isn’t a unique, single cryptocurrency, but a term that describes any crypto alternative to Bitcoin. With this in mind, it really depends if you should invest your money into Altcoins.
All cryptocurrencies have a big risk attached to them, due to their unstableness and high volatility. If you do decide to invest in Altcoins, there are a few things to keep in mind.
Take your time to research and understand your investment, especially if you’re planning to stick with it long-term. Don’t follow market hype or investor recommendations and analyze the facts for yourself.
There are many places where you can purchase Altcoins, the most popular one being cryptocurrency exchanges. Lastly, remember to invest only that which you can afford and avoid potential headaches if the Altcoin of your choice drops in value overnight.