The concept of what altcoins are is still something that many investors wonder about. In the Crypto market, Altcoins may be quite new to many investors. What exactly is the concept of Altcoin? What is the purpose of Altcoin in the Crypto market? To answer these questions, let’s explore the details with Learn Crypto Trading right now.
What are altcoins? Basic information about Altcoins on the market
In the Crypto market, in addition to the term Bitcoin, investors can also hear Altcoin. So the true nature of What are altcoins? The difference when trading between Bitcoin and What are altcoins that traders need to consider? Please continue to follow the following basic information:
The basic concept of what are altcoins?
Simply put, Altcoin is an alternative coin. They replace other cryptocurrencies besides Bitcoin. The first and most popular electronic currency on the Crypto market today is Bitcoin. However, since the mid-2010s, many other cryptocurrencies, collectively known as Altcoins, have emerged.
These Altcoins are built on Bitcoin technology. However, they have their unique improvements and features. These Altcoins are developed for different blockchain technologies and protocols. Each Altcoin will have its characteristics and uses. At the same time, they are also designed to bring unique benefits and value to the Crypto market.
What are the differences between Bitcoin and What are altcoins?
Bitcoin is the first electronic currency on the market. They have the largest capitalization to date. The purpose of BTC is to be used as an investment with a store of value. Blockchain is the origin of Bitcoin. However, Bitcoin has higher transaction fees than some Altcoins. Bitcoin is widely used and popular in the Crypto market.
The true nature of coins: What are altcoins? They include all cryptocurrencies except Bitcoin. They serve a variety of purposes, from payments to real-life applications. Including smart contracts in decentralized projects. Altcoin has diversity with many blockchain transactions and modern technology. Many Altcoins have faster transaction speeds and much lower costs than Bitcoin.
See more: Knowledge you need to know about Coin trading
Top Altcoin investors should not ignore
In general, Altcoins have high-profit potential in the future. By diversifying risk and increasing profit opportunities. These coins, with their low cost of ownership and groundbreaking power, help you optimize your investment. Below are the basic Altcoins that investors can refer to when choosing to invest.
Altcoin ETH in the Crypto Market
In 2013, Vitalik Buterin created an expensive cryptocurrency called ETH. They are often referred to as Bitcoin 2.0. Altcoin ETH is not simply a normal coin. It is also the foundation for building many other applications using the blockchain programming language.
ETH operates on the same blockchain as Bitcoin. Investors can completely mine ETH with Ether currency. Currently, Ethereum has also created its decentralized financial ecosystem. Since the release of ETH, they have become the second-largest cryptocurrency by market capitalization.
Litecoin on the Crypto market
Charlie Lee launched Litecoin in 2011. Litecoin in the Crypto market is a peer-to-peer cryptocurrency. They were created with the aim of becoming a safe, fast, and reliable payment tool for investors.
Litecoin is built on Bitcoin’s open-source code using a mining algorithm different from Scrypt. The Litecoin network has faster transaction processing speeds than Bitcoin. They only take 2.5 minutes to confirm, compared to Bitcoin’s 10 minutes. Litecoin is becoming more widely accepted by individual investors and services. At the same time, many people are considering this as a potential investment in the cryptocurrency community.
Top Altcoin BNB on the market
BNB is the coin released by Binance in 2017 through an ICO. BNB coin was built by Binance based on the blockchain platform of the Ethereum community. BNB is built with the Binance and Binance Chain ecosystems in mind. Until 2020, the BNB coin will be built on Ethereum’s EVM virtual system. They focus on operating and developing the BSC instead of the Binance Chain.
Through Binance’s changes, BNB coin has been improved and developed more centrally in the Crypto community. The highlight of BNB coin is going deep into the Game Fi, Social Fi, and Metaverse segments. BNB coin has expanded and grown in scale from a chain to a multi-chain. Strengthen On-chain’s management mechanisms. The activity of the BNB coin is also the highlight of this coin in the market.
Technical analysis of coin trading with What are altcoins?
Technical analysis of trading coins with Altcoins will look at current market conditions to predict future fluctuations. The indicator will help investors identify trends through price charts. Support and resistance, as well as momentum to help investors decide on more profitable trades.
Technical analysis in Crypto is based on the assumption that prices move in trends. And these movements often follow relatively clear patterns in market sentiment. In other words, it is based on the belief that traders will react psychologically the same way every time they encounter a similar situation.
Use the Momentum indicator to analyze trading coin techniques.
In the Crypto market, fluctuations in each trading session are huge. Using the Momentum indicator when trading brings both high profits but also great risks. So, the concept of the indicator, What is Momentum? Momentum is a trading strategy based on the emphasis on bullish and bearish momentum. Taking advantage of this momentum, investors can place short-term orders. When using the Momentum trading strategy, most investors will buy high and sell higher or vice versa.
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Can Altcoins be traded in futures?
Today, futures trading does not only stop at traditional coins but can also be applied to Altcoins. They represent all coins in the Crypto market except Bitcoin. So, the concept of the future? Futures contract trading is like an agreement to buy and sell at a certain price. This sales agreement contract will be confirmed by both the buyer and seller. A futures contract is for a fixed asset that has been priced at a specific date.
Conclude
Above is the detailed answer for investors about the question What are altcoins? Although Altcoin currently has quite high price fluctuations per trading session. However, if there are detailed trading strategies. They will definitely bring high profits to investors. To understand more detailed information about the Crypto market. Don’t forget to follow Learn Crypto Trading every day!
FAQs
Is there currently any Altcoin to replace Bitcoin?
Up to now, there is no Altcoin capable of replacing Bitcoin.
Can altcoins be mined?
Each Altcoin has a different purpose. Investors can mine using specialized machines with Litecoin or Bitcoin cash,…
How many Altcoins are there in the market today?
Up to now, the number of coins on the market has reached thousands of coins. According to CoinMarketCap, the current number of Altcoins is 5,540.
