As you know, the first cryptocurrency was Bitcoin, and later there were alternative coins - altcoins. The creators of altcoins did not just copy the structure and functions of bitcoin but sought to improve, expand, and optimize them. Blockchain turned out to be a universal system that can be used in absolutely any sphere of life. And now, for different purposes and projects, different cryptocurrencies began to appear en masse. At the moment, there are over 2,000 altcoins.
Like bitcoin, altcoins have become a tool for making money for investors and speculators. It is important to understand the difference between investors and speculators. Speculators aim for quick profits. They execute many trades in a short time and strive to respond to every fluctuation in the market. Speculations require constant attention to the market, experience, knowledge, and skills in trading and lead to strong nervous tension.
The investor analyzes the asset, determines the risks and the investment period, concludes the transaction, and waits for the investment completion date. Investors hold positions for a year or more. During this time, the price can rise and fall several times. Speculators will make hundreds of trades and spend a lot of nerves. But investor returns tend to be significantly higher anyway.
How to choose coins for investment?
To invest in the first 10 coins after bitcoin with the largest capitalization is not correct. To choose coins for investment, you need to take into account their characteristics, potential, and development dynamics. For example, Tether (USDT) is in 6th place of the rating now with a capitalization of more than $ 58 billion. It is one of the top altcoins. But you won't be able to make money on it. Because this stablecoin is rigidly tied to the dollar exchange rate 1: 1, and its cost fluctuates within + -2 cents. And such a promising currency as Litecoin is in 12th place. We will consider several of the most interesting altcoins, in our opinion, which is worth paying attention to.
If Bitcoin is considered digital gold, then Litecoin is digital silver. It was created as a lighter, faster, and cheaper Bitcoin counterpart. Indeed, transactions of LTC are confirmed in 1-2 minutes, and the fees are insignificant.
The coin is popular and widespread. It is supported by PayPal and is accepted by over 2,000 merchants and stores around the world. Improved privacy features will allow both public and private transfers. All these features, as well as possible cooperation with another altcoin Cordanо, in the long term, may cause a significant increase in the value of Litecoin.
This decentralized platform is an advanced counterpart to Ethereum. It is developing a smart contract platform with more advanced functionality than no other cryptocurrency has. For staking a coin, a reward of up to 5% can be awarded. Cordanо demonstrates a higher cash flow than Ethereum and may seriously compete with it in the future.
This cryptocurrency was launched before the launch of the eponymous crypto exchange Binance. It can be used both for regular payments and transactions on the Binance exchange. BNB is a competitor to Ethereum, operates on its own blockchain Binance Cain, and its capitalization is growing steadily.
Uniswap creates liquidity for the decentralized finance industry. It is an automated market maker that stimulates activity and reduces costs for all market participants. UNI operates according to the ERC-20 standard and therefore requires Ethereum to work. With the introduction of Ethereum 2.0 and Proof-of-Validation systems, transaction costs will drop, and Uniswap will continue to grow.
The first confidential cryptocurrency that provides a high degree of encryption. It is impossible to track the volumes and participants of transactions with this cryptocurrency. Monero is the best choice for investors and online entrepreneurs looking to protect their personal information.
Of course, there are many more altcoins worth considering. We have shown only a few of them.
Now everyone can easily create a crypto wallet, open an account on a crypto exchange, and trade cryptocurrency. But, as statistics show, unprepared impulse trading leads to loss of money. It is much safer to invest your money for a long time and receive stable passive income.
The investment company Zon Finance offers deposits with an annual interest rate of 280% with daily accruals of profit. At the same time, you do not need additional knowledge and skills in trading, and you will not waste your nerves. The professionals of the company will do all the work. The company works in many directions, and the diversification of risks allows making a profit in any conditions.
Let's make money together.