ALTCOINS

You will also come across the term ‘Altcoin’ when talking about cryptocurrencies and this word is used to describe ‘Bitcoin Alternative’ and applies to the many other smaller coins that are in the market place. Many altcoins are much cheaper than Bitcoin or Ethereum, whereby investors are basically looking for the next Bitcoin type price increase by investing on cheaper prices. Whilst this may be appealing, it’s important to do your research as many coins fail.

The figure below shows why altcoins can be a good place to start.

Some may have logical economic reasoning behind them and can be easily mined compared to the large two of Bitcoin or Ethereum, which, paired with the fact that some altcoins may have more coins available, make them attractive. It is also key to have some sense of understanding of the programming protocols involved with altcoins, as they will be another key component that will affect investors’ choices. Investors will not want to be involved in an altcoin if it is hard to mine and isn’t easily available on an exchange to buy and sell. Furthermore, miners won’t want to mine it either so its life will be limited under such circumstances.