Many people associate the term “cryptocurrency” with bitcoin. But as soon as you immerse yourself in the world of mining, you discover the critical period of “altcoin.” The term comes from the abbreviation of two words – “bitcoin” and “alternative.”
Each issued modification of the cryptocurrency tries, if not to replace the forward. Then provide users with a more convenient digital currency, but with a lower coin value. The emergence of altcoins is due to the lack of centralized regulation. Like any national currency, cryptocurrency has a specific value against:
- the US dollar;
- the euro;
- the Russian ruble;
- other real currencies.
There are ratings of popularity, demand, cost of the essential and unpopular altcoins. The first is on the same list as bitcoin, comparing other strong crypto market players. The market chose applicants. Look at the currencies that are most well-liked and pick your altcoin signals. Check safetrading.today for more help. If the investor decides to include several types of cryptocurrencies in the portfolio, conducting a thorough analysis of the situation for all applicants becomes faced. The first thing to pay attention to is the state’s position on digital money. In the case of negative assessments, there will be no particular prospects for the investor in this area. All altcoins are suitable for mining on a home computer.
With bitcoin, is it over?
img source: independent.co.uk
Get a warning from us right away – you need to understand that cryptocurrency is a volatile asset. It can lead to financial losses. Recently, there have been rumors that bitcoin is over. It is not professional to believe stories, so we are looking for arguments. Bitcoin has become the most well-liked of all digital currencies because:
1. people built the first token around which the physical infrastructure (bitcoin machines);
2. the media spread bitcoin.
Thanks to PR, people believed that:
- bitcoin = the whole crypto market;
- everything else – altcoins (secondary estimates).
The situation with bitcoin has been changing since the beginning of 2024 and is happening dramatically. How technically does bitcoin lag behind its competitors? Number, cost, and speed of transactions. Convenience is also lacking. And it is necessary to please the broad masses of the population. Before, transactions were processed in a few seconds, but now you can wait a day. There are no decisions on this yet. At the beginning of 2024, bitcoin had a share of 70% but has now fallen to 43%. Bitcoin remains a digital asset that is available to institutional investors. Bitcoin maintains leadership positions with regulators and other oversight bodies. It remains a magnet for institutional and retail investors. Institutionalists are specialists for their stable approach to assets; they do not sell them in panic attacks. If you feel the reversal of the trend, then go quietly like the actual British. When these experienced institutionalists leave, bitcoin begins to fall in price. A reduction of half a year on altcoins is quite common. Bitcoin is still powerful, and it takes 1-3 years to disappear completely.
Who is the new generation of investors?
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We mentioned that more technological tokens would replace bitcoins. New generation investors will work with them. These are the ones who will not take into account the number of ATMs for the crypt. These are the ones who understand that the crypt is at the next level where the number of countries that accepts
- the token;
- the banks that integrate it into their systems are essential.
These investors go beyond info drives. They study the specs, white paper and understand the benefits of tokens.
Alternative coins change the crypto market
Bitcoin slowed growth while altcoins became more active. Altcoin season is when investors invest in alternative coins, which occurs at this time. Altcoins are less capitalized assets. Investors want to make money because they have not grown like bitcoin and can update historical highs. The growth of altcoins increases the overall balance on cryptocurrency exchanges. Traders send coins to their exchange accounts for the potentially faster sale or purchase of alternative currencies.
How to analyze the market?
img source: businessnewsdaily.com
To choose altcoin, it is necessary to proceed from the sectoral analysis.
1. Identify which market sectors are currently in demand.
2. Determine which of the assets of these sectors lag behind the market.
The blockchain token season is now scorching, and assets such as NEO, EOS, and TRX, unlike Ethereum, Cardano, or purchases on Binance Smart Chain, are frankly slowing down. You can bet on the recapitalization of these assets against the background of sector growth and overall market capitalization.
3. Stay in trend and contemplate tokens of those sectors that are in demand from investors.
How to choose a coin?
img source: economictimes.indiatimes.com
- Exchanges on which the estimate trades. Better one – but the first or second echelon, than many, but poor quality;
- Evaluation of the expectation from the opinion of the section. What is the general information field around the project? How specialized forums conduct the branches.
- Assessments of the project from the belief of the work done. Whether the idea is exciting and promising, whether there is a working MVP (minimum working prototype), the guide looks like. How the work moves, whether meetings deadlines and deadlines;
- Rating of the project from the attitude of existing investors. If Grayscale or Microstrategy has invested in the project – it is most likely a good project;
- project appraisal from the sentiment of market analysis. Whether the occupation benefits and is necessary for the market;
- Team consideration. Who manages the project, whether there have been victorious predictions in the white-collar history of the team.
Conclusion
The infrastructure of cryptocurrency has changed dramatically in recent years. We don`t need more ATMs. In the first place is the integration with other payment systems, including banking structures. More technological, larger, most small volatile tokens will attract more and more money over time. A significant decline in bitcoin due to capital flows into other currencies would be a substantial blow to the community. It is possible that in this case, investments will come to the fore not even in individual tokens but in index funds, as is now happening in the stock market. Manufacturability provides the potential for expanding applications, consolidation in the economy, and rising prices. If the government officially accepts these changes, the altcoin will become the top of the cryptocurrency world.
