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Altcoins, the phenomenon of newer Crypto Currencies

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.

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What does Mining Crypto Currency really mean?

Last time, we looked at Crypto Currency and what it means. This time, we’ll look at Mining, and its potential.

What is mining?

Many people are confused as to what mining actually is. With many thinking Bitcoins as some sort of hacker’s currency, it’s not surprising that Crypto Currency jargon is shrouded in mystique. With that in mind, in this article, we’ll clear up what mining actually is.

Anthony Volastro has defined mining as, “‘Mining’ is lingo for the discovery of new bitcoins – just like finding gold. In reality, it’s simply the verification of bitcoin transactions.” And how is that done? “It’s not just one transaction individuals are trying to verify; it’s many. All the transactions are gathered into boxes with a virtual padlock on them – called ‘block chains’ … Miners run software to find the key that will open that padlock.” And when they achieve that, new bitcoins are released as a reward.”

As Volastro said, mining is about finding the write combination to unlock a Bitcoin or any Cryptocurrency. The rate at which this is done is called the Hashrate

 

Can Mining be Profitable?

Dire warnings about the future of Cryptocurrency have scared off quite a few people from investing in what is clearly the currency of the future. However, these warnings are mostly scaremongering from a group of people who find the idea of a cryptocurrency threatening to their current position or the future position of the institution they work for. While Cryptocurrency isn’t guaranteed to continue growing, it is something that has established itself and isn’t going anyway. The two biggest platforms are completely secure, and heavily backed by many people, so the safety of the platform is nothing to worry about.

 

With that said, the question is how profitable mining can be?

The answer to that question is that it can be as profitable as you make it. You can make very little money, mining a few hours of the day while using your computer for different applications. You can make a larger profit by buying a dedicated mining rig and using it, and breaking even within one year, as we will show in the next article. A dedicated mining setup can earn to the tune of a few thousand dollars, to the tune of a few hundred thousand dollars, depending on how much you invest.

 

Why don’t more people mine if it’s profitable?

This is a question bandied about by many skeptics in the world. If something is so good, why are more people not doing it? It’s a valid question, however, let’s consider another question. How many people in the world are prepared to take a risk to make a profit?

The answer is not very many, and that is why Cryptocurrency is yet to completely take off, even though more and more people are using it every day. And this is good news for you, because the more the number of people that mine, the less the profit. So get into the game now, before the profit is completely wiped out, and Cryptocurrency turns into just another currency.