In the cryptocurrency saying “Wild West,” Bitcoin established its reputation at the top long before other types of coins were coined on the blockchain. Therefore, other coins called “altcoins” were lined up.
Since then, thousands of new altcoins or alternative coins have been created and added to the crypto ecosystem. “Altcoin” refers to all types of cryptocurrencies other than Bitcoin. Ethereum is the most popular altcoin, and people use the full name (Ethereum) when talking about the wider blockchain network, but use Ethereum (ETH) to discuss the currency itself. According to the price-tracking website CoinMarketCap, as of February 2022, there are more than 17,000 cryptocurrencies. Bitcoin accounts for almost half of the total crypto market capitalization, and Ethereum accounts for almost a quarter. Altcoins occupy the remaining market share (about 40%).
In other words, there are thousands of other coins exchanged in the Metaverse. Let’s take a closer look at what Altcoin is and why experts say most investors should avoid anything other than Bitcoin and Ethereum.
What is an altcoin?
The term “altcoin” is an abbreviation for “alternative coin” and simply means a cryptocurrency other than Bitcoin. Following Bitcoin, these are the nine most popular cryptocurrencies: ether USD coin
Need to invest in Altcoins?
Experts warn that Bitcoin is very speculative, and Altcoin is even more so. Ethereum, the most widely used altcoin, has grown significantly since its launch in 2015, thanks to its smart contract capabilities and the popularity of digitally rare art known as non-fungible tokens (NFTs). ETH has a market capitalization of over $ 500 billion at the time of writing.
But don’t allow the popularity of altcoin to lead to the fear of being overlooked (FOMO). Even crypto evangelists are seeing the rise of cryptocurrencies with sound skepticism.
“Everyone is always looking at other people who are making money and they are like“ What about me? ”,” Says Nelson Mercan, CEO of blockchain event company LightNode Media. “But I think the beauty of what cryptography can do for us is to reassess our relationship with money.”
Don’t think of cryptocurrencies as a quick cash earner, says Mercan. Instead, see it as an opportunity to learn about new asset classes without risking everything. Before actually investing in small altcoins such as tethers and Cardano, you first need to learn how they work.
Many experts say cryptocurrencies stay here — especially now that the Biden administration has revealed a desire to regulate them — and blockchain technology continues to hold potential across many different industries. ..
Need to invest in an altcoin? But don’t allow it to lead to fear that the popularity of altcoin will be overlooked (FOMO). I think the beauty of what we can do is to reassess our relationship with money. Don’t think of cryptocurrencies as quick money, Mercan says. Before actually investing in small altcoins like tether or Cardano, you first need to learn how they work.
Some altcoins include meme coins, forks, security tokens, governance tokens, utility tokens, stable coins, and many more.