To date, we have all heard of cryptocurrencies. However, within this industry, we often hear of a lesser-known term, namely that of Altcoin. This is a category of cryptocurrencies, which, while having some downsides, is an investment area that should be carefully considered. So, let’s take a look at what altcoins actually are, what their advantages are, and most importantly, where and how it pays to buy them.
What are Altcoins
In the world of cryptocurrencies, it is customary to distinguish between Bitcoin and Altcoin. While the former is none other than the most famous digital currency in circulation, as well as the one that currently has the highest value, the latter are simply all cryptocurrencies that are not Bitcoin. Altcoin, in fact, stands for Alternative Coin. Given this definition, it is clear that Altcoins are numerous and include both the most famous digital currencies, such as Ethereum or Dogecoin, and others more or less unknown.
Is it worth investing in Altcoins?
As mentioned, there are many altcoins in circulation. Because of this, wondering whether or not it makes sense to invest in them at all does not make much sense. In fact, what is appropriate to ask is which of these digital coins are or are not worth considering for an investment. Depending on which cryptocurrencies you choose, in fact, the outcome can be very different. Let’s take a detailed look at what the advantages and risks of altcoins are.
Advantages and Risks
The advantages of altcoins are many. First of all, this category of cryptocurrencies is very numerous and constantly updated. Therefore, it will be relatively easy to find an asset that meets your investment ideas. Within the category, in fact, you can find both large projects, on the market for years, and for this reason relatively solid, and more recent assets but for this reason often with a great potential for growth.
Besides being numerous, then, altcoins present a great variety within them. Many of these cryptocurrencies, in fact, correspond to highly innovative projects, which propose to revolutionize the digital world. Therefore, even within one’s investment preferences, it is easy to find diversified assets to choose from based on the validity of the project behind it.
However, altcoins also present some risks. The main one, as in any financial investment, is that these cryptocurrencies have a certain degree of volatility. Therefore, it is impossible to know their future performance with certainty. However, following careful evaluation, it is possible to make potentially very profitable investments. In fact, over the years many altcoins have experienced impressive growth, coming to multiply their value by several dozen times.
Best Platforms to Buy Altcoin
Buying Altcoins is quite simple and there are numerous tools available online in this regard. Among the most famous and popular platforms, we undoubtedly find eToro and Binance.
eToro
eToro is an online broker born in 2007 and in recent years has gained a leading position in the world of buying and selling financial assets. As far as its activity in the European Union is concerned, the company operates under the rules of the Cyprus Securities & Exchange Commission (CySEC), which guarantees high standards of security and transparency.
Using eToro is quite simple. First, you need to log in to the official website and create a free account, entering some data such as a username, a password and your email. Later, you will be asked to verify the account. Again, you’ll have to provide some personal information and answer some questions.
Once this is done, you can start trading. Buying Altcoin on eToro is a quick and intuitive procedure. In fact, once logged in, you just need to position yourself in the search bar at the top and enter the cryptocurrency you want to buy. At that point, you need to click on Invest, select the desired amount and follow the indicated procedure.
In general, eToro is a pretty convenient platform from an economic point of view. In fact, creating an account is free and the only thing you pay is a commission on each cryptocurrency purchase. Specifically, this commission, called a spread, varies depending on the asset you want to buy. For example, it goes from 1.9% on Ethereum purchases to 4.5% in the case of MIOTA.
Binance
In addition to being a buying and selling platform, Binance is a true ecosystem of services dedicated to the world of cryptocurrencies. With an average daily trading volume of around $2 billion, the company constitutes one of the largest and busiest exchanges you can find online.
Again, using the platform is very simple. Registration consists of just a few steps, which include accessing the official website and entering personal data and an ID to verify your account. As for the payment methods, there are many options available. You can, in fact, pay a sum of money as a deposit and use it for your purchases. Alternatively, you can trade directly, using a credit or debit card.
In addition, it is possible to carry out a so-called Peer-to-peer exchange. In this case, you interact directly with another user, through a marketplace made available by Binance, and the payment is made through one of the modes chosen by the seller. However, this feature is not available in all countries around the world.
Buying Altcoin on Binance is simple. Once logged in, you need to select the Buy Crypto menu at the top left and choose one of the purchase options. Once you have done that, simply choose the asset and the amount you want and follow the directions.
Even in the case of Binance, registration is completely free. What you pay is a commission on each trade, which varies according to your monthly trading volume and the type of trade you make. In any case, we are talking about figures measurable in tenths of a percentage point.