Alternative + Coin

Altcoins

Any cryptocurrency that is not Bitcoin can be referred as altcoin. This is because these other coins have been shaped as Bitcoin "alternative coins"

They can begin to lose their status as a 'altcoin' as coins become more established. As it is a fundamental component of crypto today, Ethereum is not often referred to as an altcoin.

But projects constructed on Ethereum will probably be known as altcoins.

With various objectives, Altcoins are created. Others are designed to fix financial industry problems, others may be targeted to disrupt different industries or functions, such as fashion or the supply chain.

Investing on Altcoins

No investment, particularly in crypto-currencies, is guaranteed. Before you start thinking about investing in an altcoin, you should ensure that you completely understand what gives a crypto-currency value.

Some traders chose to invest in altcoins because they trust the project's vision or the coin's use case. Others might look at the project's hype or big upcoming milestones.

Generally, the high potential for benefit is the appeal of investing in an altcoin. Altcoins have a slightly smaller market cap than Bitcoin, so major gains could theoretically be made.

Take note:

With the market cap, the value of the coin is not the price per coin. In the market cap itself, the valuation is expressed. Generally speaking, low market cap coins have more potential for growth than large caps, but they can be more of a risk.