Altcoins are the projects and tokens whose use cases are different and effective from bitcoin. But has a low market cap as compared to Bitcoin.
What is an altcoin? Altcoin meaning.
In basic terms, A token of any project whose market cap is small or half of the Bitcoin market cap is called an altcoin. Although not every project comes in the altcoin category, there are some non uses cases projects which are called Shitcoins.
To research and understand altcoin, you should verify these points before investing in that crypto project:-
- The project should have a website and a Whitepaper of the project in it.
- The Team of a project must have a public profile on their website. (verify their details on google)
- They should have some kind of Use cases in the crypto industry or Any other industry.
- Read their whitepaper and try to understand how they will operate and their future plans of growth.
- There tokenomics, check if the circulation is not too high or too low that anyone can manipulate price easily.
- Check on how many exchanges have listed their token. Are there any big exchanges?
- Who is the investor in the project, Are they known or unknown organizations.
Types of altcoins. List of altcoins’.
There are many creative projects in cryptocurrency each project has different use cases for different chains.
Some of them are:-
- Smart contract projects:-Ethereum, Cardano, Solana, and Polkadot, etc.
- Stablecoins Projects:- Tether, Terra, etc.
- Swap Projects:- Uniswap, sushiswap, 1inch, and pancakeswap, etc.
- Payment Projects:- Ripple, Litecoin, Dogecoin, etc.
- Oracle Projects:- Chainlink and Graph
- Lending projects:- Aave, Compound and synthetix, etc.
- Gaming project:- Enjin, Decentraland, and Axies, etc.
- Layer 2 solution projects for chain:- Polygon, stacks, and loopring, etc.
This list of types in projects will not end, I have given you a simple example to find the right altcoin projects and to understand it’s by their category.
Altcoin vs Bitcoin. Altcoin define.
Bitcoin was the first project of blockchain that came out in 2009. It’s use cases is based on simple payment transaction all around the world in an easy and fast way. Bitcoin is also used as Gold 2.0 for store of value for inflation.
Whereas, altcoins projects are different in use cases with the different industries like vechain project focus on supply chain market. So, altcoin does things that bitcoin can’t process or do in a slow way.
Now, How to invest in altcoin?
Before investing in any project first, you should verify the points that are said in the upper paragraph. Your favorite project might not be listed in big exchanges. So, Go to Coinmarketcap and check the exchanges option on your project page. You can find it there. Try to invest in a good project having a better use case and Listed on some famous exchanges.
Conclusion Take way.
What is altcoin?
Any project that has a market cap lower than bitcoin’s market cap is known as an altcoin.
List of Altcoin?
On Coinmarketcap, You can check the Top 25 Projects for investing and their tokencmics.
Invest in altcoin?
Before investing, understand the project and its team. Because when goes down you should have trust in your project. Without that, you will do Speculation only.