The word Altcoin is an abbreviated form of alternative coin. This cryptocurrency was established after Bitcoin came into existence. This digital token can be regarded as a suitable alternative to Bitcoin, the most renowned crypto to ever exist. Altcoins consist of all those cryptocurrencies which are not Bitcoins. These include Litecoin, Dogecoin, Uniswap, Cardano, and Zcash.
Sources suggest that these cryptos take up about 80% of the crypto market, only sparing 20% for the first established digital token- Bitcoin. It creates an opportunity for its users to earn high returns. Also, investing in this crypto posess high amounts of risks.
How Can I Purchase Altcoin?
Purchasing Altcoins is somewhat similar to purchasing traditional cryptocurrencies. This is because it is fairly straightforward and easy. Beginners must buy Altcoins through exchanges for easier transactions and avoiding fraud. If you are an advanced trader, purchasing this crypto from the owner’s over-the-counter will be a bold choice for you. The steps to follow for purchasing Altcoins are:
1. Determine The Percentage Of Portfolio Allocation For Investing Purposes
Since Altcoins consist of a variety of crypto coins other than Bitcoin, the consequences for different coins are distinct from one another. Usually, all Altcoins are in an innovative phase. Some teams of this crypto have instigated their coins and then disappeared after handling their allocated sums on the crypto market. This process is known as the Rug Pull. This is the sole reason the percentage of blockchain projects blunders quickly.
Since investing in Altcoins is comparatively riskier than investing in traditional cryptos, the chances of failure become quite high. So, separating the portfolio into distinct risk layers will be the wisest option to go for to be on the safe side.
2. Look For More Favorable Coins
Select the most appropriate Altcoin from a list of thousands of its varieties. Do this on the basis of suitability and the needs of the investor. You must always scrutinize and select the Altcoin that most appeals to you.
3. Exchange Fiat Currency For Altcoin
Investors must always swap their fiat currencies with cryptocurrencies. This is because most exchange platforms are not fiat on-ramp and guarantee the acceptability of purchasing using US dollars.
4. Select The Most Appropriate Exchange Platform
Finding the most suitable exchange platform to trade your Altcoins through is vital. Beginners can go for renowned exchanges as they offer high liquidity and fewer cases concerning fraud. For this reason, KuCoin makes for a credible Altcoin exchange today. So, you can test it out. You could also grab the opportunity to interact with nearly 18 million and more global investors worldwide.
5. Select A Currency Pair
Before trading your Altcoins, it is necessary to examine the trends of your currency pair. Also, view its performance over the past few weeks. This should be done to ensure that the investor trades at the right moment.
6. Proceed With The Trading
You need to keep all the above-mentioned points in mind. Also, you must take necessary actions to ensure efficiency so you can execute your trading seamlessly.
Purchasing Altcoins can be straightforward if you follow all the necessary steps mentioned above. Try out now.