Bitcoin is continuously growing despite market setbacks. It is now a most popular cryptocurrency and more people are investing in it.
Often, new traders can become too fixated on bitcoin and may lose some good opportunities on other cryptocurrencies.
Some new traders don’t realize that this popular cryptocurrency has its drawbacks. For instance, it is more prone to bitcoin-specific fraud or attacks. Hence, altcoins have risen to address what may be lacking with bitcoin.
In this article, we will talk about why altcoins could be better than bitcoins and why it is worth your while to invest in it.
What Makes Altcoins Better
Since altcoins are created after Bitcoin, its features and perks could be more innovative. Other than being relatively less expensive than bitcoin, it adds more value since it has better privacy protection and transaction speeds.
In a volatile market such as cryptocurrency, it is essential to diversify a portfolio since it minimizes exposure of funds to unexpected market swings on a crypto asset. It’s a great way to manage risk and potentially increase your income!
Here are five emerging altcoins ideal to look into:
Second, only to Bitcoin, Ethereum is an excellent coin to invest in! It grew from USD9 in January 2017 to USD1,389 in 2018, which made its early investors gain returns by 17000%. Now, with the upcoming halving of Bitcoin on May 11th, there’s a positive market sentiment surrounding Ethereum.
What makes it a worthwhile future investment is the potential applications of its underlying technology. Ethereum operates on smart contracts, which allows transactions anonymously and without the assistance of any third-party.
It brings out the possibilities of blockchain technology applications which means there are going to be more activities surrounding Ethereum.
Litecoin was developed to overcome some of the difficulties usually encountered in Bitcoin, particularly on the speed of transactions.
Compared to other altcoins, Litecoin has been in the market since 2011. It mainly addresses the slow transactions in Bitcoin. It usually takes 10 minutes to confirm one Bitcoin transaction, but this typically takes only 2.5 minutes with Litecoin.
Though it’s in the market for quite some time, the cryptocurrency saw massive growth in January 2017. It rose from USD4 to USD350 by the end of the year which gave returns by 8000%.
3. Cardano (ADA)
Cardano operates similarly to Ethereum but it has more technological improvements. It started with USD0.021 upon launch.
But, within three months, it reached USD1.22 in January 2018. This means that early investors and traders made a 6,000% return in three months.
With a strong team working behind Cardano, its credibility is unquestionable. So far, it is the only cryptocurrency that has a peer-review system on all the work in the platform.
The technology in developing Cardano is meant to address the scalability issues currently in Ethereum. Traders and investors are eyeing it because of the solid technology that backs up the coin. This makes it a good investment to diversify a portfolio.
4. VeChain (VET)
VeChain is a project that provides robust blockchain-powered technology for data management and the Internet of Things (IoT). It is designed to improve supply chain management, efficient collaboration and high-speed value transfer.
It focuses on providing real-world solutions that a modern-day business typically encounters. Now, the innovation is being used to check counterfeit KN95 masks using a two-factor authentication code. These codes can be scanned by retailers and healthcare workers to check the specific location where the product came from.
Each item’s information is stored on VeChain’s blockchain and then sends it for verification purposes.
This makes it a valuable investment because the technology is becoming an integral part of businesses. As more businesses adopt blockchain technology, the value of VET may go up.
EOS was developed to be an enterprise-grade solution in deploying decentralized apps. During its ICO, it was well-received by many investors and traders, allowing it to raise USD700 million.
Experts are now saying that EOS is an excellent cryptocurrency to invest in 2022. Many of them have made a forecast that its price is expected to rise. According to WalletInvestor, the price may reach USD911 by 2023.
Buying and Selling Altcoins for Beginners
People who have no trading background but want to start trading should look into altcoins. It’s great for diversifying investments to manage the risks involved in cryptocurrency.
For first-time crypto traders who are looking to invest in altcoins, it is best to use crypto trading tools. Altcoins can potentially be profitable trades especially for those who have no trading background.
The chances of spotting good trades is only possible with the right crypto trading tool. Trading altcoins on a good platform may even let you reap profits 10x more than you’d expect.