Cryptocurrency investments have remained popular in the wake of Bitcoin’s success. As many know, the path to cryptocurrency success is anything but straightforward. With new digital coins popping up every day, it’s important for investors to know which investments might result in big wins. In this article, we’ll take a look at two early altcoins that could generate sizable gains in the cryptocurrency markets.
1. The Emergence of Early Altcoins
In the wake of the Bitcoin craze that swept the world in 2009, a flurry of digital currencies emerged. These currencies, known as altcoins, were designed to work in similar ways as Bitcoin, but their designs enabled a degree of specialization that Bitcoin does not. Altcoins promised anonymity, faster transaction times, and other advantages and features unique to their platform.
One of the first altcoins to garner worldwide attention was Litecoin. Founded in 2011, Litecoin was an open source project whose focus on faster transaction times and lower fees made it attractive to cryptocurrency enthusiasts and merchants alike. In 2013, Litecoin became the first altcoin to become widely accepted after it was listed on the U.S.-based cryptocurrency exchange Coinbase. Litecoin soon became one of the top altcoins in circulation and set the stage for the development and acceptance of other altcoins.
Other early altcoins included:
- Namecoin: Namecoin was launched in 2011 and was designed to provide users with a way to securely store their data on a decentralized ledger. Namecoin has since been used to store information on the whois records of domain names.
- Feathercoin: Founded in 2013, Feathercoin is an open source project that focuses on providing a secure and efficient payment platform. Feathercoin utilizes a proof-of-work algorithm to generate new coins, which helps prevent double spending and other forms of fraud.
- Dogecoin: Dogecoin came into existence in 2013 as a joke currency heavily based on the Doge meme. Despite its initial status as a joke, Dogecoin has since become one of the most valuable altcoins in circulation.
marked a dramatic shift in the world of cryptocurrencies. Whereas Bitcoin was once the only viable option for digital currency transactions, the emergence of these new currencies provided users with additional options and opened up the market for more competition. Furthermore, the success of Litecoin paved the way for other altcoins to gain traction and become widely accepted.
Today, altcoins comprise a sizeable portion of the global cryptocurrency landscape. Many altcoins offer features and advantages not available with Bitcoin, and the competition between altcoins is helping to drive innovation in the world of cryptocurrencies.
2. Significant Growth Potential of Two Altcoins
Litecoin (LTC)
The Litecoin (LTC) is an open-source cryptocurrency, created by former Google engineer and MIT graduate Charlie Lee. It is one of the most established and oldest cryptocurrencies in the market. LTC is seen as a potential alternative to Bitcoin and is believed to have a significant growth potential. Litecoin utilizes a different type of algorithm than Bitcoin, making it faster and more efficient for everyday transactions.
The currency has seen a significant amount of growth in 2017, following the explosion of Bitcoin prices. Many people saw Litecoin as a less volatile, and often cheaper digital currency alternative to Bitcoin. Litecoin has remained relatively stable during the wild swings of the cryptocurrency markets. This has made it a preferred currency for many, leading to an increased overall demand.
- It’s one of the oldest and most established cryptocurrencies available.
- It provides an alternative to Bitcoin, offering more efficient and faster transactions.
- It has seen an increased demand due to market volatility.
- It has remained relatively stable compared to other cryptocurrencies.
Dash (DASH)
DASH is a newer player in the Cryptocurrency markets, having been established in 2014. It is an open source, peer-to-peer digital currency designed to provide quick, cheap and secure transactions. It operates on a two-tier network, meaning everyone can contribute to its development. This allows it to remain adaptable to changes in the markets and provides a very attractive platform for investors.
Due to its decentralized nature and attractive cost and speed features, DASH has seen a considerable amount of growth in 2017. It is seen as more reliable and secure than Bitcoin and other altcoins, making it a strong competitor in the cryptocurrency market. Investing in DASH may provide investors with a significant potential for growth and a solid long-term investment.
- It is an open source, peer-to-peer digital currency.
- It provides quick, cheap and secure transactions.
- It operates on a two-tier network, allowing it to remain adaptable to changes in the markets.
- It has seen a considerable amount of growth in 2017 and is seen as more reliable and secure than other currencies.
3. Analyzing Long-Term Investing Strategy for Altcoins
Altcoins – alternative crypto-currencies – have revolutionized the world of investing, with immense short-term possibilities and ever-increasing adoption. But before taking their first, reckless step into the world of trading, investors should consider a more long-term strategy. Here, we examine three key approaches to extending your altcoin gains.
1. Spread Your Bets – By diversifying your investments, you spread your risk across the different altcoins available. While there may not be as much of a potential reward, this way if one investment performs poorly, others can act as a buffer. Rebalancing your investments to maintain a balanced portfolio is also key.
2. Follow the Trends – Monitor the long-term trends of altcoins to give an indication of which investments are the most likely to yield the greatest returns. A portfolio based on technical analysis can help to maximize profits. By tracking short and long-term price movements, traders can stay ahead of the game.
3. Hedge your Risk – Investing in altcoins can be risky, so by hedging your risk, you can ensure that any losses are limited. Examples include:
- Investing inAltcoins closely related to bitcoin, such as Ethereum, as these tend to follow a similar price pattern.
- Investing in a basket of altcoins, across a range of market caps, to spread risk.
- Choosing altcoins that have been around for some time, to reduce price volatility.
4. Protect Your Investment – Even if you believe the altcoin you’ve chosen is sound, it’s always important to protect against unforeseen external forces. Ensure that you balance your portfolio to prevent losses in case one altcoin experiences a crash. This way, you can minimize your total risk.
5. Use the Dollar-Cost Averaging Method – This approach involves buying a fixed amount of altcoins on a regular basis. By buying at regular intervals, you can take advantage of the average price of the Cryptocurrency over the long-term, reducing the risk of an individual purchase. This approach allows for more secure, long-term investment in the altcoin market.
4. Maximizing Potential for Big Returns With Altcoins
Altcoins Offer Good Opportunities for Higher Returns
Altcoins, or alternative cryptocurrencies, offer a different approach to investing and trading relative to the bigger cryptos like Bitcoin. They come with their own risks and reward structures, giving investors different opportunities to profit.
Altcoins can provide very high returns if successful, though it should be noted that to maximize potential returns it’s important to have a good understanding of the project’s potential. Good projects that have the potential for solid returns often refer to what are called “bluechip” altcoins which are those commonly accepted as viable investments.
It’s strongly recommended that investors start by doing their own due diligence, familiarizing themselves with how the project works, its goals and its audiences. There are some projects that will appeal to a more casual investor, with smaller initial investments but a potentially larger payoff.
To maximize returns, investors should research both the team and technology behind an altcoin. A good team will have an excellent knowledge of the blockchain technology and a development plan that matches it. Additionally, the team should be familiar with crypto economics, the competition in the crypto space, and the wider financial landscape.
- Altcoins are a good way to increase returns
- Start by doing your due diligence and researching the project at hand
- Be aware of the team and technology that are involved
- Bluechip altcoins have an accepted viability for investment
- Consider industry competition and overall financial markets
With their lower barriers to entry and high potential profits, these two altcoins offer new and experienced traders potential for extraordinary gains. Do your research and invest responsibly, and you may find yourself speaking of life-changing profits just a few months down the line.