What you will learn in this video What are altcoins? How to decide cedar which coins to invest? What is an ICO? Should you invest in an ICO? Altcoins, or alts in short, are cryptocurrencies that are not Bitcoin. The word altcoin is an abbreviation of alternative coins. So LitecoinRipple, Dash or any other non-Bitcoin cryptocurrency all fall under the category of altcoins.
What is an ICO?
Bitcoin is not perfect. Usually, altcoins will try to create a better or different version of Bitcoin. For example, Litecoin is an alt that confirms transactions faster than Bitcoin.
Dash and Monero are altcoins that earn on the anonymity aspect, making transactions virtually impossible to trace. Altcoins can also vary from Bitcoin in the way they are mined. Different mining algorithms require different types of hardware to mine. Another thing to keep in mind is that if an altcoin is relatively new or not that well known, it will probably be harder to buy and will have fewer wallets that support it. Until today, thousands of altcoins have been introduced to the market, but only a handful have managed to gain a significant following like Bitcoin.
One way to figure out which altcoins are gaining popularity is by measuring their market cap. How do you earn decide in which coin to invest? Make sure you understand what makes it unique and see if it makes sense to you. Once altcoin coin appreciates in value the creators altcoin all of their coins at a profit while crashing the price due to the massive sell off. This leaves the majority of investors with a bunch of useless coins and no one to sell them to.
Usually, most major coins have an official forum, a Facebook group, a subreddit earn other places of gathering where you can ask the developers of the altcoin specific questions. Now you know what altcoins are, and we can move on to our next topic which earn closely related—ICOs. ICO stands for initial coin offering. The term derives from the traditional finance term, IPO or initial public offering. An IPO is used cedar describe the launch of a new company on altcoin stock exchange, also known as going public.
The purpose of an IPO is to sell stock in the company in order to raise capital from cedar public. ICOs on the other hand sell coins, also known as tokens, as a way to fund a specific project.