“The best altcoin you should invest in is…” more often than not, that’s how deceiving advice start.
If you don’t want to get ripped off, don’t follow these types of posts.
It is because people behind it are either behind the coins or affiliate marketers. That’s is why I didn’t link to the term altcoin, as I will explain later in the text.
Long before crypto, people were thinking of models on how to get rich very quickly.
Since I am the guy who is influencing public opinion with my cartoons, I know how it works. Therefore, I know what I am talking about and how even my opinion can alter someone else’s.
For so many times as a scalp trader, I made wrong moves by some faulty news. My friends, Christian and Sannah, as true hodlers, don’t understand my pain.
As an expert in making mistakes, I can produce a comparison of the cryptocurrencies currently on the market.
Without supporting any of the following, I’ll leave you to conclude which Altcoin is the best for you.
What is Altcoin?
Officially, the first Altcoin was Namecoin.
Nowadays, it is not very popular, but it is still famous as Bitcoin’s first fork.
In the case of crypto, the term “fork” describes the event when someone is taking the source code of some crypto to create a new one.
Otherwise, forking can be an improvement to a crypto’s protocol that all users (nodes) have to follow. And those who don’t can form a new cryptocurrency out of it. Interestingly, this is not exclusive to Bitcoin, as this happens with altcoins, too.
For example, Ethereum Classic is the continuation of the original Ethereum code. The reason behind so many Altcoins is the ease of forking the initial code. In previous years, we have witnessed their growing number undoubtedly. Yet, many are left behind.
There are three models of launching Altcoins:
- ICO (Initial Coin Offering)
Most notorious are ICO, as these were a basis for various scams. By the proven method, launching a fundraising campaign was followed by the owner’s disappearing.
- STO (Secure Token Offering)
To resolve this issue, STO requires backing in some investment assets, such as bonds, stocks, or real estate. Similar to printing money, STO had an intention to secure the investment.
- EIO (Exchange Token Offering)
Finally, EIO brings additional security with the exchange platform as a middle man. In this case, a crypto exchange is analyzing and approving Altcoins or providing a development team.
Which Altcoin Will Dominate?
There are so many altcoins on the market, and each has a chance to dominate. Of course, this stands if its founders are not performing some hit-and-run tactic. And no one can guarantee that.
However, most heads are turning to Altcoins for a significant return on investment.
Yes, Bitcoin was an excellent investment if bought in the previous decade. But some Altcoins can bring you that profit within a month. At the same time, you can lose it all in seconds.
Another side of this game is the opportunity cost. As there is always some new Altcoin, you would consider your investment as the missed opportunity.
However, diversifying your portfolio is the best strategy. Therefore, you should opt for:
- Ether – is the Altcoin from the Ethereum platform. Even though this platform is facing severe issues with transaction speed, many favor it. One reason for this are DApps, as this platform is a popular choice for its creators. Also, for my friend Sannah, who is in love with crypto games and collectibles.
- XRP – features the fastest transaction of all Altcoins, overcoming Paypal. Ripple is also famous for the donation of $29 million, funding various school projects. Although this improved the circulation, it was also a form of promotion.
- LiteCoin – another Bitcoin fork, the idea behind Litecoin was to alter Bitcoin for daily transactions. Popular comparison is that if Bitcoin is the gold, Litecoin would be silver. Moreover, there would be four times (84,000,000) more Litecoin than Bitcoin. Following the four times faster transactions.
Which one is the best? Well, the answer is simple – the one you would hold on to until hefty profits come.
How to Raise Your Chances?
Keep in mind that I grew up on cartoon heroes and that my opinion has that flair. Therefore, my answer to the million-dollar question, “which is the best Altcoin,” would be – the one you build.
For real, if you are a true believer in any Altcoin, you will promote it. Second, you wouldn’t sell it, thus causing the price to go down. Finally, you would convince others to invest in it.
Even though this sounds like influencing people, true believers can’t avoid this effect. If you a member of the crypto community, you know what I’m saying.
For example, I am a member of one superhero forum dealing with cartoon characters. Promoting some Altcoin is similar to believing in superheroes.
As Millennials are flocking to crypto, many are feeling FOMO and FUD. Seemingly, your job would be to get them interested in the Altcoin of your choice.
Moreover, if the new financial crisis strikes, many would see crypto as a safe harbor. Needless to say, that this is not something I would like, but crypto has the potential to save the financial market.
Keeping to reasonable grounds, I will avoid going into some world of cartoons. Let’s make it simple. If you find some Altcoin that you believe in, support it, but be realistic, too.
The reason for the support could be knowing the founders and their stories, or supporting their cause. After all, the crypto world shouldn’t be only about the profit or losing “for the cause.” It is our chance to make a better world.