Generally, when people think cryptocurrency, they think bitcoin. While it is the most popular cryptocurrency, there are many other competitors in this market. Altcoin traders use the term ‘altcoins’ when referring to cryptocurrencies that aren’t bitcoin; i.e alternatives to bitcoin. Altcoin trading grew in popularity during bitcoin’s period of harsh volatility. But are they worthy of their own buzz though?
— Muse 🎢 (@cryptomuse) September 26, 2018
At its root, Bitcoin is a cryptocurrency, but technically it is more than just a currency. It’s a software that people can run (Bitcoin Core), as well as a blockchain that keeps track of every transaction that takes place on the bitcoin network. The blockchain determines who owns which bitcoins. Though the concept of a blockchain was developed by the creator of bitcoin, Satoshi Nakamoto, other people are free to create their own blockchains and cryptocurrencies. This is how altcoins came into existence, as this is generally what cryptocurrencies are.
Altcoin traders are any traders who trade in currencies that are not bitcoin. These coins may include Ethereum, XRP Ripple, Litecoin, Bitcoin Cash, and Monero.
If you’re considering becoming an altcoin trader, it may be worth noting that analyzing charts on face-value alone will not depict the whole scene. In the case of BTC (Bitcoin) and altcoins, both parties are in a highly speculative state in the current market. Despite this, altcoins can provide a valuable alternative to bitcoin. Though it can often be difficult to decide which one you should invest in, it may be a good idea to keep your eye on both markets to see what happens. As it stands, bitcoin is highly volatile. For traders, this is a ride they’re willing to go on, but for those new to the cryptocurrency industry, a more stable, a cheaper alternative may be better.
There is currently no feature that bitcoin has that will keep people using it even if something better comes along.
Even if cryptocurrency is the future of currency, and blockchain technology becomes used worldwide, Bitcoin could still become entirely worthless. A switch to altcoins could leave bitcoin in the past, and we wouldn’t be missing out on anything special in the process. Altcoin traders are well aware of this situation and are often trying to find out which altcoin will be next up to follow in bitcoin’s footsteps to be the biggest cryptocurrency.
This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.