The price of Bitcoin is too high…Is Altcoins an alternative to diversifying your portfolio?
Welcome to Bitget - the world’s fastest growing crypto derivatives trading platform.
Here is a crucial problem stopping people from investing in Bitcoin: the price and volatility is too high. Do we find a stable and price-friendly crypto with a lower entry barrier to invest in?
The crypto currencies other than Bitcoin can all be defined as Altcoins. Apart from ETH and some of the potential projects, as of November 2021, there are over 14,000 cryptocurrencies on the market. And there is an increasing tendency. Unluckily, many of the Altcoins have no real investment value.
If you don’t want to invest your hard-earned money in those bubbles, read this article to learn how to identify the real value of an Altcoin.
What are Altcoins?
The cryptocurrencies other than Bitcoin can all be roughly defined as an Altcoin. They have the common features of Bitcoin, like the running mechanism, peer-to-peer transaction network and distributed nodes of ledgers.
Some of them have introduced extra functions that are not covered by the Bitcoin Network, like the smart contract functions introduced by Ethereum. This makes it become outstanding from thousands of crypto projects.
Looking to get started with cryptocurrency? You can also directly purchase ETH and other popular crypto with credit card, Apple Pay and Google Pay on Bitget now!
5 Types of Altcoins and Their Investment Value
Here are the 5 most common types of Altcoins and their potential investment value:
1. Platform Coins: Some Blockchains allow users to create tokens or coins. Ethereum is the most popular platform to carry out tokens and coins issuing.
For example, the platform token of Bitget, BGB has multiple use cases within the Bitget ecosystem, including getting discounts on trading fees, as proof of rights and interests for users of different levels, and as a social token for the interaction between fans and copy traders.
Example: ETH, SOL, DOT, BGB
2. Meme Coins: The meme coins actually have no real value as Bitcoin or Ether. They become popular in a short period of time because of a joke or a trend. Even Dogecoin is a satire of crypto, its price is often affected by the speech from the serial entrepreneur Elon Musk, rather than its investment potential.
Example: Dogecoin, SQUID
3. Stable Coins: High volatility is one of the key reasons stopping people from investing in crypto. The value of stablecoins is pegged to a basket of goods or fiat currencies in order to reduce the volatility.
They enjoy a relatively lower risk. Investors may receive passive income from holding stablecoins. Stablecoins are able to withstand the price volatility of cryptocurrencies.
Example: Tether's USDT, MakerDAO's DAI, and the USD Coin (USDC)
4. De-Fi Coins: There are different usages of the De-Fi coins, including governance, staking and profit-sharing. If you have invested in a De-Fi coin, you have the voting right to influence the future of the De-Fi project.
Example: UNI is the token of Uniswap, a DEX based on Ethereum. The UNI holders have the right to create and vote on a proposal to change the platform.
5. Utility Tokens: Utility tokens are used to purchase the services provided by a Blockchain network. The value of the tokens depends on the value of the services, network fees and rewards offerings.
Example: Filecoin, a crypto to purchase storage space.
The future of Altcoins
More than ten thousand Altcoins are available in the markets right now. Everyone claims that they will change the future, like the IPhone and skyrocket like Bitcoin.
The actual fact is many crypto projects may not survive. Only a few of them will be as popular as Bitcoin or Ether, which will depend on utility and applications in the future.
There are no regulations on Altcoins. A guy without computer knowledge is able to release an Altcoin with the help of the Ethereum Blockchain.
As the cryptocurrency markets become more mature than before. More and more professionals and capital are entering the market. In the future, it will become less risky to invest in and there will be more regulations to protect the rights of investors.
The Ultimate guide to trade Altcoins on Bitget
Here is a simple way that you can easily access it. Investing in crypto on Bitget is much faster than opening a trading account in a bank…even if you have no crypto investing experience before!
For more information: Trading101: Top 10 Terms Every Crypto Trader Should Know
1. Buy Altcoins with Credit Card, Apple Pay Google Pay on Bitget
You can directly purchase both Bitcoin and Altcoins with credit card, Apple Pay and Google Pay on Bitget. It is a simple and direct way for new crypto investors to buy Bitcoin using Visa, MasterCard or your smartphone.
Don’t you have an account on Bitget yet? Register a Bitget account now.
2. Trade Altcoins
Bitget supports the deposit of more than 200 Altcoins, including the popular crypto like Ether. You can first deposit in your Bitget account. Then, you can exchange for Bitcoin at the rate you desire on the market.
If you want to know more about blockchain and crypto-trading information, don’t forget to follow us on Bitget Academy. We have constantly provided useful information for crypto investors, so that they can enjoy better trading and a better life.
Looking for the latest crypto projects like the opportunity in Game-Fi? On Bitget Launchpad, we have already launched several potential Game-Fi tokens projects in 2022. It is a new platform for launching new crypto projects and airdrops. By leveraging the power of Bitget, you may discover more quality projects every month.
Disclaimer: All products and projects listed on this article are not endorsements, and are provided for informational purposes only.
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