When one speaks about the crypto market and digital currencies, the spotlight readily shifts to Bitcoin, being the largest cryptocurrency today. But the entirety of the market is not just comprised of it. In fact, today, there are many digital coins that were introduced after Bitcoin was created. These coins came to be known today as Altcoins. But what are they exactly, and can we invest in them?
In simplest terms, Altcoins are cryptocurrencies that are not Bitcoin. More often than not, these present themselves as better alternatives to the leading digital currency. According to CoinMarketCap, these Altcoins make up nearly 40% of the entirety of the crypto market.
According to Ben Weiss, COO of CoinFlip, there are more than 5,000 Altcoins, and “most of them will never be able to materialize into anything useful or provide substantial returns in the long term.” That being said, many analysts still believe that some of these “alternatives” are worth looking into.
The top Altcoins today
When talking about cryptocurrencies that are not Bitcoin, there is no doubt that Ethereum will appear to be the next big thing. After all, it recorded a 180% growth of its price this month, reaching more than $2,150. Some are even saying that the surge in the value of the capitalization of the crypto market was driven by this record high set by Ethereum.
Those that complete the list for top Altcoins today include Chainlink, the first decentralized oracle network, Unibright, which is Ethereum’s key for enterprises, Basic Attention Token or BAT, and OX, which is basically a protocol that allows decentralized exchanges of tokens.
Rounding up the list are Komodo, the self-funding cryptocurrency Energi, Bitpanda Eco System Token and Web Energy Token. Although it gained a bit of ground and popularity, Dogecoin wasn’t able to make it to the top, but it still remains one of the more interesting Altcoins today.
Should you invest in Altcoins?
The real question stands. Should people invest in Altcoins, which are basically cryptocurrencies that are not Bitcoin?
According to Weiss, while Altcoins present an opportunity because they have higher upside in terms of percentage gain, they also carry higher risk. A perfect example would be the case of Dogecoin that rose in terms of value in late January 2021 because people started buying it. As quick as its rise, its fall can also come fast.
The COO of CoinFlip then said that if you are looking to invest in Altcoins long term, you should believe that what you choose is a good investment because not doing so would mean you’re just gambling and not investing.
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