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Altcoin (Altcoin) means alternative coin or alternative coin and it is called any blockchain digital currency that was released after Bitcoin. In other words, any digital currency that is not Bitcoin is considered an altcoin. This term consists of two parts, Alt, meaning alternative, which is a shortened version of Alternative, and Coin, meaning coin and currency.
It can be said that digital currencies are divided into the general category of “Bitcoin” and “Altcoin”. Currently, there are tens of thousands of altcoins in the market. For example, Litecoin with the symbol LTC is the first altcoin on the market, which is considered a fork of Bitcoin. Ethereum, Ripple, Polkadat, Solana and Tether are among the most famous altcoins in the market.
Some people also believe that because all digital currencies are somehow made from Bitcoin and Ethereum, anything other than Ethereum and Bitcoin can be called altcoin.
In general, Bitcoin and altcoins have three main differences:
Purpose: While Bitcoin is supposed to be a decentralized money and payment system, many other cryptocurrencies have a different purpose. For example, some altcoins like Ethereum seek to decentralize not only money but also other processes, or some altcoins like Polygon focus on scalability.
Technology and Infrastructure: Altcoins generally seek to decentralize and use distributed infrastructure technologies such as blockchain; But in order to achieve their diverse goals, they may use different technologies and infrastructure; For example, Ethereum also uses blockchain; But it has a different infrastructure to better support smart contracts.
Market indicators: Of course, altcoins differ in indicators such as market symbol, market value, market price, etc. It should not be forgotten that, like Bitcoin, the principle of supply and demand is also true for these digital currencies and ultimately determines the prices.
Altcoins can be divided into different categories as you wish. You will know the most general categories of altcoins below.
Payment tokens, as their name suggests, are digital currencies that can be used to make daily payments and are considered a digital currency. Litecoin, Bitcoin Cash and digital currencies that are similar to them can be considered as payment tokens or payment tokens.
Stablecoins or digital currencies with a fixed value are currencies whose value is not influenced by the market and since they are backed by another asset, their price is always fixed.
For example, Tether (USDT) as the largest and most famous stablecoin in the market, its price is always one dollar; Because one US dollar is kept in the treasury of this company for each Tether.
These tokens function like stocks and are each a tokenized form of an asset. For example, you can make a token from your own home and this token can be used as a document if it is accepted in the judicial authorities.
These tokens are used as service tools in blockchain networks. For example, Phantom (FTM) is an altcoin with which users can participate in blockchain decisions, and in a way, their right to vote on the network.
It can be said that meme coins are the most famous altcoins in the market. These digital currencies are actually a joke and have no special use in this field. The price of meme coins is determined by the cycles of supply and demand in the market, and their price has little to do with their use.
These digital currencies are an improved version of Bitcoin and Ethereum; Because each of them has solved one of their problems.
Altcoins have more uses than Bitcoin, and many of them are more than just a means of payment.
The variety of altcoins is very high and investors can choose between different options.
The investment market of altcoins is smaller than that of Bitcoin, and this is considered a weakness.
The number of altcoin investors makes their liquidity sometimes very different from that of Bitcoin.
There are many dead altcoins in the market and this can cause huge losses for investors.
Another disadvantage of altcoins is that scam projects are abundant among them.
For those who want to diversify their investment portfolio, investing in altcoins can be a great opportunity, and it may not make sense to limit the world of digital currencies to Bitcoin. However, without exaggeration, no future can be imagined for more than 80% of altcoins, and sometimes they are fraudulent projects that have no purpose other than to fill the pockets of the development team.
A few points that you should consider before investing in altcoins:
Altcoins generally experience more extreme volatility; For example, if the price of one of them goes up and down by 50% in a month, it is not surprising;
For some altcoins, it is more likely that they will never reach their initial price and will gradually lose attention and be destroyed;
About some unknown and unreliable altcoins, the liquidity is so low that once you buy, you may never be able to sell again.
The nature of this market is such that an altcoin can be made and introduced to the market within a few minutes. This is why the future of this type of digital currency is not certain. In addition, the market of these digital currencies has a lot of diversity and this is a big risk, on the other hand, there are countless opportunities in front of you as an investor.
As we mentioned earlier, altcoins are a very good option for investors to diversify their digital currencies. But don’t forget that the crypto market is a very volatile market and you should enter it with thorough research.
In the following, we introduce 10 of the best altcoins that can be invested in in 2024.
Note: The introduced currencies should not be considered as investment advice in any way. Before buying or selling digital currencies, we strongly recommend that you do a thorough research so that you don’t suffer losses.
Ethereum is one of the digital currencies that cannot be said to have a bad future; Because it is the heart of the ecosystem of smart contracts in the crypto world, and this makes long-term maintenance of this digital currency seem logical.
Buying Ethereum, as a logical investment on altcoins, is one of the options you should consider for your digital currency portfolio.
Buying and selling TenCoin is a very attractive option considering the recent events that are happening on the block of this digital currency. We are all familiar with the NOTCOIN project and we know what attracted Telegram to the blockchain world.
Apart from NatCoin, there are many good projects running on the TON blockchain, and this is a valid reason to invest in TON.
Considering the possibility of Ripple winning its case with the US Securities and Exchange Commission (SEC), buying Ripple can also be an attractive option for investing in altcoins.
Of course, you should also consider the existing risks. Currently, the circumstances of the case are not such that Ripple can be considered the winner with certainty. However, with sufficient research and investment principles, keep Ripple in the corner of your mind.
Never underestimate memecoins! Memecoins have a power in the digital currency market that can be found in few areas. Dogecoin and other memecoins sometimes do things in the market that even Bitcoin can’t do!
This is why you should take a look at buying Dogecoin; Allocating part of your funds to meme coins and especially Dogecoin can provide you with a good profit opportunity in your altcoin portfolio.
One of the loudest altcoins in the market in 2023 was WorldCoin. This digital currency was developed by ChatGPT with the aim of decentralization in the field of authentication.
Buying WLD token or World Coin can be an attractive option for 2024; Because it works on artificial intelligence and a big company is behind it.
Currently, Binance Coin digital currency is the number 4 digital currency in the market. The recent sidesteps of Changpeng Zhao, the CEO of Binance exchange, in recent months have caused this digital currency not to grow like other currencies in the market.
Considering the slower growth of BNB, it can be said that if the situation improves, its price will increase faster than other altcoins in the market. However, we still emphasize that you do a thorough research before buying Binance Coin.
