Jun 30, 2016 at 12:58 // Price
The emergence and growth of the popularity of the alternative currency Bitcoin has led to the creation of many other cryptocurrencies based on Bitcoin Blockchain code. All these cryptocurrency have the generic name - Altcoins.
More new coins appear on the financial market often and immediately become the object of investment. To increase the investment attractiveness of altcoins in the network we receive information about the specifics of digital currencies which have more advantages than Bitcoin. For example, the possibility of producing more coins, the speed of transaction verification, and so forth. For Bitcoin developers, the development of their own innovations is more important, while other altcoins can be hardly regarded as competitive.
But investors are looking for any other possibilities to save and increase their wealth, as for them, the most important thing is the investment attractiveness of one or the other cryptocurrency. And if tomorrow the price, for example, of Litecoin will grow much faster than Bitcoin, investors will have a desire to sell Bitcoin and buy Litecoin.
In this article, we will try to uncover what criteria investors use to evaluate the investment attractiveness of altcoins. The main rule of the trader in the market is to follow the trend. If the trend is up, you need to buy, if trend is downward - you should sell. To start, we will take a look at the most popular altcoins, which are offshoot projects of Bitcoin.
This cryptocurrency was launched in 2011. Unlike Bitcoin, which has a limited number of 21 million coins, the number of Litecoins is four times higher - 84 million. Moreover, Litecoin transactions are also four times faster than Bitcoin - 2.5 minutes for Litecoin vs. 10 minutes for Bitcoin. Litecoin is characterized by high volatility and high volume on the trading market.
A relatively new exchange unit, which unlike other cryptocurrencies, can serve as a means for sharing resources using smart contracts. ETH is often called as cryptographic fuel, which is necessary for the Ethereum platform to work. Therefore, ETH generally has an interest for specialists who develop and disseminate decentralized applications.
Since the issue of ETH is limited, its price is expected to increase over time.
Peercoin is considered to be a self-cryptocurrency, which has an improved security system and a special algorithm. Payments in this cryptocurrency can be sent around the world. The mining has low expenses, as there is no need for enhanced maintenance of equipment to achieve the minimum commission for transfer payments.
The basis of this cryptocurrency algorithm was adopted from Litecoin. The number of coins in circulation can be unlimited. The DOGE price is first calculated against Bitcoin and then multiplied by the ratio of Bitcoin exchange rate against the US Dollar.
Neu is a relatively young cryptocurrency. Its launch was initiated in early 2015. Initially Neucoin was developed for the micropayment market below $1. However, in September 2015 Neucoins value reached 14 USD per 1000 Neu, which forced investors to pay attention to this altcoin. A characteristic feature of this altcoin is high volatility in the market.
To make it clear how altcoin prices change on the market, lets take a look at one of the examples. This is a graphical analysis of the Litecoin price over the past 2.5 years:
Dynamics of LTC/BTC exchange rates in June 2016
The dynamics of the price of LTC/BTC from 2014 to 1st half of 2016
The dynamics of the price of LTC and the BTC against the US Dollar from 2014 to 1st half of 2016
As you can see in the charts, the Litecoin price against the US Dollar and Bitcoin has been steadily declining. Thus, advantages of Litecoin over Bitcoin had no effect on the price increase of Litecoin. However, considering these charts it is difficult to assume a rising trend for Litecoin.
Similarly, we can try to analyze the direction of the trend of any other altcoin.
Using the review of the major altcoins we will try to identify the top-5 most important criteria when buying cryptocurrency.
1. Investment attractiveness. The rising cost of a cryptocurrency over a time interval is an important criterion when selecting an object of investment. Stable growth for 2-3 years speaks to the confidence of players in the cryptocurrency. Moreover, using collected information, the investor should be aware of the direction of the trend.
2. The cost of production of coins - a factor that consistently affects the market value of the coin.
3. The number of coins that can be mined. An unlimited number of coins in circulation have a negative impact on the growth of altcoin price. Too limited a number of coins can also scare away investors.
4. The volume of sales and the number of participants. The more activity around a certain cryptocurrency, the greater the likelihood of its price growing.
5. Appearance on the cryptocurrency exchanges and partnerships with other existing payment systems. It is important to select the exchange with higher prices, and for depositing or withdrawing funds when buying or selling cryptocurrency.
Each investor must independently determine the feasibility of buying a particular investment instrument.
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency.
See original here:
How to Choose Which Altcoin to Invest In? - Coinidol.com
- Crypto Analyst: Ethereum, XRP and Altcoins Poised for Major Rally As Bitcoin (BTC) Dominance Drops - The Daily Hodl - November 18th, 2019
- Bye-Bye Bitcoin? Why the Altcoin Bottom is In - newsBTC - November 18th, 2019
- Proof of Stake Creator: Bitcoin Unlikely to Dominate Altcoins in Long Run - Ethereum World News - November 18th, 2019
- Best Bitcoin/Altcoin Wallets For iPhone [2019 Edition] - October 1st, 2019
- Crypto Conundrum: Bullish Bitcoin Price Action Halts Altcoin ... - April 24th, 2019
- Altcoin Season 2019 Thrives: Everex (EVX) Leading Binance ... - April 21st, 2019
- What is an Altcoin? - CCN - February 9th, 2019
- Altcoin Trader South Africa - ice3x Altcoin Exchange ... - February 2nd, 2019
- Altcointrader.co.za Review - Altcoin Trader, Login ... - January 27th, 2019
- Bitcoin History Part 5: A Wild Altcoin Appears - Bitcoin News - January 9th, 2019
- Latest News on Altcoin | Altcoin Breaking News | DC Forecasts - January 9th, 2019
- Altcoin Daily Preview: Tron (TRX) Could Bounce back ... - January 9th, 2019
- Most promising Altcoins and ... - Captain Altcoin - January 8th, 2019
- Altcoin - Investopedia - December 12th, 2018
- GoChain (GO): Here's Why This Altcoin Might $GO All The ... - November 10th, 2018
- Find The Best Bitcoin, Altcoin, or Multi-Cryptocurrency ... - November 10th, 2018
- Altcoins Explained | The Best Altcoin Guide for the Beginning ... - October 3rd, 2018
- Altcoin.io | The cryptocurrency exchange of the future | Wefunder - September 30th, 2018
- Android Bitcoin ~ Altcoin Price Ticker ~ Coin Maker - September 4th, 2018
- 7 Altcoin Exchanges Without KYC & AML - CoinSutra - August 22nd, 2018
- Altcoin News Archives - Ethereum World News - August 7th, 2018
- Altcoin News | Altcoin News today | Latest Altcoin News - July 27th, 2018
- USING ALTCOIN TRADER - rsainvestments.blogspot.com - June 24th, 2018
- Guide: Compiling an altcoin daemon in Ubuntu Linux ... - May 31st, 2018
- Top 3 Altcoin Trading Exchanges - [Reviews and Ratings] - May 27th, 2018
- PacCoin VPS Masternode Guide AltCoin Guide - May 12th, 2018
- Asian Cryptocurrency Trading Roundup: Top Altcoin is Tron ... - May 10th, 2018
- Alternate Cryptocurrencies aka altcoins r/altcoin - reddit - May 9th, 2018
- Garzik Forks UnitedBitcoin Away from "Maximalists" to Support Altcoin ... - April 13th, 2018
- Bitcoin, Altcoin and Cryptography explained - April 4th, 2018
- ZClassic and the Bitcoin Private fork : altcoin - March 4th, 2018
- Altcoin Trustworthy Decentralized Cryptocurrency Exchange? - March 4th, 2018
- Blockfolio Bitcoin Altcoin App on the App Store - March 4th, 2018
- Morning Asian Altcoin Trading Roundup: the leader is Tron - February 28th, 2018
- Webinar: Bitcoin Overshadowed by Altcoin Surge - Nasdaq.com - February 12th, 2018
- Bitcoin Mine News Bitcoin & Altcoin Mining & Trading News - January 7th, 2018
- Ethereum, Litecoin Prices Headline $20 Billion Altcoin Rally - January 7th, 2018
- What is an Altcoin? - CryptoCurrency Facts - January 4th, 2018
- What is an Altcoin? - ccn.com - December 20th, 2017
- Trading Bitcoin for an Altcoin Won't Shield You From the IRS ... - December 20th, 2017
- Buy or Sell Bitcoin, Litecoin, Altcoin Multi Crypto Currency ... - December 20th, 2017
- Altcoin Exchange Performs First Atomic Swap Between Bitcoin ... - December 6th, 2017
- GitHub - ander7agar/altcoin-rpc: A modern Bitcoin Core REST ... - December 2nd, 2017
- Altcoins - BTCMANAGER - November 28th, 2017
- Markets Update: Bitcoin Bull-Run Primes Altcoin Markets for ... - November 25th, 2017
- Altcoin Exchange, the Decentralized Cryptocurrency Exchange ... - October 17th, 2017
- Altcoin Watchlist | Meet & Learn Cryptocurrencies - October 4th, 2017
- CryptoCurrency Investing: Research and Due-Diligence ... - September 6th, 2017
- ATC Coin Review: ATCC altcoin with massively inflated ... - September 5th, 2017
- JRM Altcoin Update - Quit chasing the headlines! - YouTube - September 4th, 2017
- Bitcoin Cash Statistics Confirm BCH is Just Another Altcoin - Live Bitcoin News - September 2nd, 2017
- Which Altcoins to Buy This Week? (31st of August, 2017) - Live Bitcoin News - September 1st, 2017
- OpenBazaar Developers May Introduce Altcoin Support in the Near Future - The Merkle - August 27th, 2017
- Exante launches XAI, the world's first altcoin fund - GlobeNewswire (press release) - August 25th, 2017
- ALTCOIN | Bitcoin Insider - August 23rd, 2017
- Altcoin Forum - Alternative Cryptocurrecies Location - August 23rd, 2017
- Op Ed: Drivechains Could Kill Off the Altcoin Market - August 22nd, 2017
- Nakamoto Institute Daniel Krawisz: I Don't Like Altcoins, but I Like Forks - Bitcoin News (press release) - August 22nd, 2017
- Bithumb, Highest Volume Exchange Globally, Adds Monero - Inside Bitcoins - August 22nd, 2017
- One-Man Band To Create The Second Altcoin Forum In The World - Coin Idol (press release) - August 18th, 2017
- When altcoin life imitates art - FT Alphaville (registration) - August 14th, 2017
- ALTCOIN CAPITAL - Trusted Crypto Traders - August 12th, 2017
- Overstock Now Accepts Various Altcoins for Payment - Including ... - Bitcoin News (press release) - August 10th, 2017
- What are Altcoins and ICOs Bitcoin Whiteboard Tuesday - 99 Bitcoins (blog) - August 9th, 2017
- Cryptocurrency Symbol BCC Belongs to BitConnect Coin, Not Bitcoin Cash - Markets Insider - August 8th, 2017
- Crypto-Startup Hubcoin Announces Distribution of Pre-Mined HUB to Altcoin Developers - Bitcoinist - August 3rd, 2017
- This Altcoin Is Ready to Challenge Bitcoin's Domination of the ... - Futurism - July 31st, 2017
- Beginning of altcoin's end: US signals digital coins may be subject to federal securities law - CalvinAyre.com - July 31st, 2017
- All Major Indian Exchanges Reject Bitcoin Cash Completely - Live Bitcoin News - July 31st, 2017
- Global Advisors Launches ICO and Altcoin Closed-End Private Fund - Finance Magnates - July 31st, 2017
- USING ALTCOIN TRADER - rsainvestments.blogspot.co.za - Google - July 9th, 2017
- Payza Commits to Cryptocurrency: Unveils Full Bitcoin Services, Introduces Altcoin Exchanges - CoinDesk - July 7th, 2017
- What is an Altcoin? Bitcoin Magazine - July 7th, 2017
- CryptoPing completes $2.5 million ICO to further develop altcoin trading intel bot - CryptoNinjas - July 4th, 2017
- Saturday Slump: Ethereum, Bitcoin Prices Headline Crypto Market Downturn - CryptoCoinsNews - July 1st, 2017
- Monday Massacre: Bitcoin, Ethereum Lead the Way as Cryptocurrencies Retreat into the Red - CryptoCoinsNews - June 26th, 2017
- Altcoin signal app CryptoPing set to conclude ICO with over $1m already raised - CryptoNinjas - June 25th, 2017
- EasyMINE: Altcoin Mining for Everyone - Coin Idol (press release) - June 22nd, 2017
- Altcoin 2017 Forecast: Litecoin (LTC), Peercoin (PPC ... - June 18th, 2017
- Which Altcoins To Buy This Week (16th of June, 2017) - Live Bitcoin News - June 17th, 2017