For a long time, cryptocurrency speculative markets have been dominated by a single coin, Bitcoin (BTC). The world’s first and largest cryptocurrency has set the majority of all records, including highest trading place and highest trading volume. However, in the last few years, Bitcoin’s dominance has been challenged by a number of promising Altcoins.
Bitcoin was originally created as an alternative online payment currency. It was set to revolutionise the world of finance, and in some ways, it certainly succeeded. Now, top Altcoins are improving and enhancing the possibilities of cryptocurrencies and blockchain technology.
What are Altcoins?
The ‘Alt’ in Altcoins stands for alternative. These Altcoins all serve as an alternative to Bitcoin. Ethereum, Litecoin, and There are hundreds of different altcoins out there, meaning the term ‘Altcoins’ stands for a certain type of cryptocurrency. Just like Bitcoin, Altcoins are not regulated, and the newer, less established ones have a tendency to be far more volatile and riskier.
Great Altcoins with a Clear Purpose
There are several exciting Altcoins out there, and whilst some are gaining value through their purpose, others are just pumped up through speculation and FOMO. Here are three examples of Altcoins with a promising future.
Polkadot’s mission is to create a blockchain upon which any developer can create and operate sub-blockchains. It does this in a number of innovative ways, including enhanced security throughout all sub-blockchains and reduced computing power by maximising the main blockchain’s resources.
As with most other Altcoins, Polkadot’s purpose is not unique. In fact, it is competing with a number of other coins and tokens, including Ethereum. Whilst ETH lets users create DApps on its blockchain, Polkadot is giving them the opportunity to create entire blockchains.
Chainlink is another Altcoin looking to improve on Ethereum’s current limitations. This cryptocurrency was created to provide support to smart contracts through the delivery of actionable, real-world data. With this data, smart contracts will be able to execute more reliably than they currently do.
The LINK ecosystem relies on oracles, or data providers, to fill the current gap between smart contracts based upon blockchains and data sources in the virtual and physical worlds. Every oracle has a reputational score that encourages it to provide accurate information. The return is, naturally, Chainlink tokens.
Tether is the oldest Altcoin in this list. Known as a stablecoin, it does not experience the same volatility and uncertainty of value posed by most other cryptocurrencies. This is due to a pegging mechanism with the United States Dollar. Tether, and similar stablecoins, seeks to stablise markets and deliver the potential of cryptocurrencies through non volatile price movements.
When Tether was launched in 2014, its mission was to create a blockchain-enabled platform that makes it easier to use fiat currencies online. In over six years, its trading price has never fluctuated far from the $1 value. This has led it to become popular amongst users who pay using cryptocurrency, including at online stores and casinos.
Trading Altcoins Online
Due, in part, to their purpose, these Altcoins are commonly bought and sold online. Some coins, such as DOT and LINK, provide traders with an opportunity to make a profit from their price fluctuations. All three provide a real-world use that is clearly defined and relatively simple to understand.
If you would like to buy, sell, or trade Polkadot, Chainlink, or Tether, you should open an account with a reputable cryptocurrency exchange. There are hundreds to choose from, however not all offer the same range of features and benefits.
Should you Invest in Altcoins?
One of the drawbacks of buying and selling cryptocurrencies on an exchange is having to store these coins securely for an amount of time. This can be costly and highly inefficient, especially if you plan to carry out numerous trades each day or week.
Traders looking to generate returns from buying and selling these good Altcoin examples can explore a different option.
By investing in Altcoin CFDs you can benefit from price increases and decreases without ever needing to buy or store the underlying coin. This advanced financial instrument is available for a growing number of cryptocurrencies, including Polkadot and Chainlink. By investing in CFDs you can trade quicker and at lower costs.
When trading CFDs it is important that you understand the risks involved. Using leverage can increase your profits, but also your losses.