Altcoins are cryptocurrencies that came into the limelight after the successful launch of the Bitcoin. Essentially, all cryptocurrencies run on the Blockchain and operate on the same mode as Bitcoins. Join us a we provide a comprehensive guide to altcoins.
Altcoins are conceived as alternatives to Bitcoins, and are positioned to leverage on the inadequacies of the Bitcoin.
The Rise of Altcoins
Altcoins like Bitcoins are peer-to-peer optimized, thrive on the mining process, and offer cheaper transaction approaches on the Web. The innovation introduced with the Altcoins has led to enhanced transaction speed, DNS resolution, proof-of-stake, privacy, among others.
The proliferation of Altcoins is an indication of the popularity and success of Bitcoin, but also calls for diligence on the part of the buying public. While some Altcoins have emerged strong, some are at best fabulous Bitcoin fakes, designed to make the initiators some quick money.
Common Altcoins are:
Ethereum differs from Bitcoin only by using a different version of the Blockchain.
Ethereum has become largely successful and accepted across the globe, while Litecoin is also enjoying a soaring reputation like Bitcoin Cash.
Initial Coin Offering
Theinitial coin offering (ICO) is the entry pattern each Altcoin uses to be reach buyers across the globe and become marketable.
Substantially, Altcoins are cheaper to buy just before they are launched, and this is called the presale stage. Buyers at this stage enjoy a discount, and are able to also earn a bonus quantity of the Altcoin.
How to Buy Altcoins
During ICO, Altcoins are cheaper to buy, and if you are privileged to have an insight on the offer documents, the viability of such offers become a basis to buy.
The sales window for ICOS is mostly broken down into three or more phases, with bonus levels reducing with each stage. While the first stage might attract 30 percent bonus, the last stage might be down to 5 percent or zero bonus.
The currency of exchange when buying ICOs is now streamlined to mostly Ethereum, Bitcoin Cash and Bitcoin. These three leading cryptocurrencies are the most convertible in the marketplace, and they enjoy wide support cross the exchanges.
When Altcoins complete their ICOs, they become available on exchanges. The best known exchanges are Coinbase, Bitrex, Binance, BitStamp, BitFlyer, among others.
To buy Altcoins on most exchanges, a range of options apply with their respective charges. You can buy Altocins with credit cards, debit cards, PayPal, Bank wire transfers as well as with Bitcoin, Ethereum, Ethereum Cash, and Bitcoin Cash.
How to sell Altcoins
Altcoins are however traded based on prevailing valuation at market rate quoted on Cryptocurrency Exchanges at the time of transaction. They are however less marketable than other cryptocurrencies like Bitcoin, Ethereum and Bitcoin Cash.
When you log into your account with any of the exchanges, you can place a sell order and have your Altcoins exchanged for cash or cryptocurrency of your choice.
If you have amassed bonus Altcoins or bought at any time, you can also sell these at the exchange of your choice.
Anyone who has Altcoins for sale can do so on a peer-to-peer basis if there is a willing buyer. It will require that you find such a buyer on online chat rooms, through some broker or referral.
The safety of such ad-hoc sales is an area of concern, and you should only do so when you are assured of safety and the possibility of fraud is ruled out.
Trading in Altcoins
Trading in Altcoins is possible just like you trade in stocks, ETFs and other digital assets. The underlying basis is the desire to access immediate liquidity, buy low and sell higher or meet a market demand.
The understanding of Altcoins is important for newbies so that they can have a grasp of the relationship between Bitcoin and other cryptocurrencies.
While Litecoin, Bitcoin Cash, Ethereum andEthereum Cash have become the most successful Altcoins at present, they still have a lesser market valuation than Bitcoin.
Altcoins can be bought during initial coin offerings or at cryptocurrency exchanges after the ICO closes. Selling your Altcoins or trading in them continues at major exchanges across the globe on a daily basis.