With the presence of more than 4000 cryptocurrencies and a market capitalization of $409.7 billion, the huge crypto market continues to grow exponentially. Needless to say, Bitcoin is the pioneer of the crypto world but let’s not forget the other pawns.
Commonly known as altcoins, they serve as an excellent alternative to the trillion-dollar bitcoin. Not only are altcoins easy, quicker, and affordable to trade, but they also carry less risk than the well-known Bitcoin. From offering quicker trade times to having the most secured working system, these altcoins have an entirely different nature from each other.
Therefore, it’s important to have a comprehensive study before you decide to buy any altcoin. To save you from scratching tens of content, we have summarized a useful guide to know which altcoin is the best to trade in 2021.
Since bitcoin is the first, largest, and most successful cryptocurrency today, it won’t be wrong to say that all altcoins are inspired by Bitcoin. When Bitcoin reached its trillion-dollar market capitalization, the majority of the altcoins also increased in price value, bringing attention to numerous investors. These are some of the factors you should consider when buying an Altcoin.
Volatility:
As compared to Bitcoin, Altcoins are comparatively less volatile than bitcoin because of their lower prices. Being a less risky investment, many investors prefer altcoins to be a better and safe investment. However, there are also some altcoins that tend to be volatile and relatively prone to losses.
Therefore, it’s important to have a fundamental analysis of any altcoin you’re eyeing to make safe and better investment decisions. With keeping safety and security at priority, it’s important to choose an exchange that is both secure and has quite moderate price values.
- Foundation:
Nearly all cryptocurrencies work on the safe and encrypted blockchain platform. Smart technology and infrastructure make it a lot smoother, Swiffer, and reliable to send and transfer payments all around the globe. With less trading times, an efficient working system, and a safer mechanism, blockchain makes altcoin trading a better option for every investor. An expert tried and tested suggestion is to choose an altcoin that’s wholly supported by the blockchain platform.
- Availability:
With respect to the current rules, band, and regulations on cryptocurrencies, the threat to trade cryptocurrencies is more than ever before. Therefore, the best practice is to choose an altcoin that is allowed to be traded in your country.
Otherwise, you may get exposed to severe consequences and actions for not following Government’s orders. Also, try to list down a few cryptocurrency exchanges that offer you hassle-less exchange if your preferred cryptocurrency is easily available currency.
- Price History:
A crucial step to find feet in the competitive crypto world is doing adequate research before you decide to invest in any crypto. Either altcoin you choose, make sure to have a comprehensive look at the price history. Less the price fluctuations, the more the chances of a cryptocurrency to make profits. Try to avoid the most speculative, hyped, and pump altcoins with lesser probabilities of loss than profits. Mostly, cheaper coins with lower market caps are more likely to have a steady price history than risky and high-priced coins.
- Community Activity:
Along with growing in price, altcoins have also recently experienced a noticeable spike in popularity in the crypto market. Before choosing an altcoin, don’t forget to discuss it with fellow investors and check the coin’s review on different crypto websites. Such websites like Big Money Rush serve as a platform for communal discussions and other interactive activities about different altcoins. The happier and better the reviews are, the more chances for the altcoin to make a profit.
Conclusion:
The process of deciding whether an altcoin is good to invest in might be long but worth it when you see profits coming your way. Cryptocurrency is a very speculative industry that requires effort, education, and time to make a remarkable name. Make sure you consider the five important factors mentioned in the guide and make the best of your altcoin trading. The key to know which altcoin is best lies in the fact that every cryptocurrency is different with varying needs.
Closing this helpful guide by an influential crypto investor Green,
“Investing in cryptocurrencies remains highly speculative, and it is not for everyone – but one of the keys to success would be selecting the right crypto exchange.”
(Syndicated press content is neither written, edited or endorsed by ED Times)