Introduction to Altcoins
Altcoins have become a new buzzword in the Crypto Currency community. However, not many people know what Altcoins are really about. Today, we’ll look at what Altcoins are and how they can be of benefit to mine and to trade. We’ll alsolook at them as a long term alternative to Bitcoins, where the reward now is lower than it was on the start.
Altcoin comes from two words, “alt”, shortened for Alternative, and Coins. They are basically alternative currency to the more popular Bitcoin. Ethereum was once an example of this, but now that it’s become a lot more mainstream.
Advantages of Altcoins
Altcoins are far easier to mine as there are less people mining them. Since they’re easier to mine, it means you can make a profit without investing highly in specialized mining equipment. This means that they can be mined without specialized equipment.
They are also typically cheaper and liable to rise in value much faster, so if you’re looking to buy coins in bulk, or looking for the Coins you’ve mined to rise in value, then Altcoins are your best bet to getting the best bang for your buck.
Disadvantages of Altcoins
They can collapse for no reason. Unlike Bitcoin and Ethereum, newer currencies are liable to large falls in value, and can also suddenly just disappear. It’s also much harder to convert them into other forms of conventional currency, so you could end up with the farcical situation of having something with no value. Their volatility might mean more profit, but they could mean more loss and that is something that you do not want.
Strategy for investing in Altcoins
With their potential for collapse in mind, you want to Mine altcoins early and fast. That is, either on release, or before a lot of people have begun mining. You’d then want to switch this currency as it rises to a more conventional one like Bitcoin and Litecoin, or Ethereum. Once this is done, you can continue mining the currency until you see any signs of it falling in value. When you do see it falling in value, switch to mining another currency.
So invest early, mine quickly, and then move on to the next Altcoin, while holding your currency in a more traditional Bitcoin for it to grow, and for you to have all the advantage of mining currency, with very little of the risk.