What is an Altcoin and Why Should You Invest in It?

 

Many people believe that an Altcoin is a new cryptocurrency like Bitcoin. It is not true because an altcoin is any cryptocurrency that is introduced to fulfill a specific purpose and functionality with some unique differences with Bitcoin. It is not a Bitcoin but it can be Ethereum, Bitcoin Cash, XMR, Litecoin, Ripple, etc. You might not believe it but millions of cryptocurrency traders are investing in Altcoins. Bitcoin’s value is fluctuating and the recent downfall in Bitcoin’s price had thrilled many crypto investors. Therefore, now people are investing their money in alternative cryptocurrencies which have a great potential of success in the future.

Why should you invest in an altcoin?

Since Bitcoin is the most popular cryptocurrency in the world, a trader can face a tough competition while trading this crypto asset. As a beginner, you might find it very expensive to trade bitcoins. The altcoins are not as popular as Bitcoin. These are cost-effective crypto assets with good potential of success in the future. You will not face a big loss even if altcoins’ prices go down in the future. However, you can make a huge profit if their prices rise.

As you can check online, there are more than 1,500 altcoins and many new are about to release. These cryptocurrencies might not be popular but these assets are traded on a daily basis. Altcoin transactions can be cheaper because of bigger and more technologically advanced blockchains. Bitcoin risks are forcing businesses to adopt new crypto assets such as Ethereum and Bitcoin cash. Business organizations are accepting these altcoins because their blockchain can cope with a huge number of transactions within each minute. As the facts depict, an Ethereum blockchain processes double transactions than Bitcoin and that’s why Ethereum’s popularity is increasing with each passing day.

Even though Bitcoin is ruling the crypto industry today, it might not always be the best crypto asset. New Altcoins can replace Bitcoin and position themselves as the most profitable crypto assets in the future. Therefore, it would be a wise decision to invest in Altcoins.

Buy, Sell, Hold – What to do in the Current Crypto Markets

The title of this piece is precisely the question which is on thousands, if not hundreds of thousands of minds when it comes to both new, and even experienced investors in the crypto space. Many of these people, likely entered the market at a time when prices were certainly volatile, but in a bullish fashion. The thing about volatility is, everyone can stand it….if the overall momentum is upwards.

Unfortunately, the current movement is not headed in that direction, at least currently. So what should all of these investors, who are ultimately looking to earn money online from their investments, actually do?

 

Evaluate Your Portfolio

This is a vital first step to take before jumping into any type of decision as regards trading. You need to assess your holdings and their values accurately and with a clear mind. The best way to do this is through one of the informative and easy to use portfolio trackers. They will help keep you assessment as objective as it can possibly be.

Assess Current Position vs Desired Position

It is all too easy to see a bear market and adopt a negative frame of mind. It can happen to even the best of traders. The most important thing is that you take a moment to zoom out on those charts and hold your current thoughts in the context of what you were thinking when you bought in, and crucially, the price you bought in at.

Weighing this against your exit position, either short or long term, will give you a solid indication about what your next move needs to be. You may also need to take in to account the proportion of bankroll you have remaining, if any.

Take Calculated and Fearless Response

Regardless which direction you choose to move in, you have to be firm and believe in your choice. If this is to sell, then try to do so with a clear conscience and don’t look back in regret. Similarly if you choose to buy more at knocked down prices or just hold steady, you have to be regret free in your final decision.