Best Altcoins Guide 2021

Altcoins

The word altcoin refers to any cryptocurrency other than Bitcoin or an alternative to the popular BTC. Altcoins were launched after the massive success of Bitcoin, and their numbers are rapidly rising. Since the release of Bitcoin, more than 900 altcoins have been created. 

Bitcoin, the first cryptocurrency that got much recognition and became so popular in such a short time, lacked on many terms and thus, other Altcoins came into the picture. For example, Litecoin was designed to process the transactions faster; some are developed to optimise privacy, hashing algorithms, distribution methods, etc. Namecoin, Litecoin, and Dogecoin are some examples of altcoins. 

Which was the first Altcoin? 

Namecoin is the first altcoin that went public in April 2011 and worked as a cryptocurrency. The main aim of Namecoin was to decentralise domain name registration. It maintains its place under the top ten cryptocurrencies, according to market cap. 

How do Altcoins work?

A sender sends a payment from his/her account by using a private key to the receiver’s account or digital wallet. There is a recording ledger known as the blockchain in cryptocurrency, where all the transactions are recorded. The transactions are permanent and public, making it accessible for anyone, and secure. Thus, these can’t be altered and can’t be denied. This recording ledger or blockchain is secured by mathematical proofs that validate the transactions in the blocks.

Types of Altcoins

Altcoins are of varied types and were created with different purposes. Some formed the majestic coins out of sheer enthusiasm while some had a dedicated business plan behind it. For example, Solarcoin was created as a unit that can be exchanged for solar power production. Namecoin was designed to decentralise domain name registration or a new system of domain names on the internet. Litecoin was created to process the transactions faster. 

1). Stablecoins

Stablecoins are altcoins and a type of cryptocurrency designed to tackle the volatility of cryptocurrency. It binds the value to an underlying commodity, index, or security. Tether is an example of a stablecoin; Libra is also a stablecoin under development by Facebook.

2). Digital tokens

Altcoins which operate as digital tokens are backed by an underlying blockchain platform. For example, Tether (USDT) can also be deemed a digital ticket because it is created on Ethereum and other blockchains. 

Some investors strive to earn profits by exchanging altcoins with each other. But it is risky, as an investment. Digital currencies that trade on non-regulated exchanges make a trader vulnerable to frauds, price manipulations, and other problems.

Pros and Cons of Altcoins

Pros: 

1) Low Transaction Fees: Apart from the blockchain technology, another benefit of using altcoin as a payment method is the low transaction fee for every transaction as compared to BTC.

2) Revamped on Bitcoin’s shortfalls: Altcoins are often tailored to convey a recognised defect with the Bitcoin framework, it could be anything such as mining cost, speed, or some other factor.

3) Provide competition: By twisting the rules under which Bitcoin is controlled, altcoin creators make some space for new candidates to join the Bitcoin system.

Cons:

1) High possibilities of frauds and scams: There are high chances of frauds and scams with Altcoins. Compared to Bitcoin, altcoins are usually the subject of fraudulent and scams activities. 

2) Value is very volatile: Altcoins are not a good option as an investment. These are new, and the value of altcoins change drastically.

Top 3 Brokers offering crypto trading 

1) HFTrading: 

HFTrading is a financial service provider offering a gateway to many traders to exploit and discover new trading opportunities in the global financial market. It allows traders to trade on various asset classes, including FOREX, commodity, cryptocurrency, indices etc. Here some of the essential details about the site:

  • Headquarters of HFTrading: DJCA Ltd, Level 3, 50 Victoria Street, Christchurch Central, 
  • It is regulated by ASIC (Australian Securities and Investments Commission) and also FMA (Financial Markets Advisory) 
  • It a trading brand of CTRL Investments Limited
  • Registration number of company (CTRL Investments Limited): 2446590

Trading features offered by the broker  

1) Trading platforms available for trading are Web Trader and Mobile app. 

2) Charges zero commission on trading 

3) Execution speed of trade is 0.05 seconds 

4) Provides three retail accounts along with professional, Islamic and demo accounts. You can choose any depending on the market you wish to trade. 

5) Research instruments offered by HFTrading includes economic calendar, trading signal, earnings report calendar, latest financial news and trading examples 

6) Offers educational courses such as tutorials, videos on demand, articles, lectures and EBooks. 

7) Provides trading on more than 350 asset classes including Forex, commodity, indices, cryptocurrency etc. 

8) Execution speed 0.05 seconds 

9) Pip value 0.1 

10) Maximum Leverage up to 1:400

2) 2invest 

2invest started its operation in the year 2019 and is one of the leading financial service providers acting as a link between the trader and the financial market. Though the firm is new, it has captured many investors’ interest because of its exciting trading features, affordable trading charges, and advanced trading platform. The maximum leverage offered by the trading site is 1:500. 

  • Headquarters of 2invest: Suite 3, Global Village, Jivan’s Complex, Mont Fleuri, Mahe, Seychelles.
  • It is regulated by the FSA (Financial Service Authority) 
  • Regulated under the licence number: SD014
  • 2invest is operated by two major firms Habonix Solutions Ltd and Aronex Corporation Ltd
  • Registration number of company (Habonix Solutions Ltd): HE396742 Aronex Corporation Ltd: 8417765-1

Trading features offered by the broker 

1) Provides three retail accounts (gold, silver and platinum) and professional, Islamic and demo accounts. You can choose any based on your demand.

2) Zero commission on trading 

3) Easy account opening process 

4) Trading platforms available for trading are Web Trader, MetaTrader 4 and Mobile app.

5) Provides trading on a wide range of asset class including Forex, commodity, indices, stock, cryptocurrency and several more 

6) Research instruments offered by the broker includes economic calendar, earnings calendar, trading signal, latest news 

7) Offers educational courses such as videos on demand, tutorials, webinars, classes, articles and eBooks. 

3) T1markets

T1markets is a leading financial service provider offering the latest and advanced tools for carrying out trade. CySEC (Cyprus Securities & Exchange Commission) is the central authority that regulates the firm and keeps an eye on its operations. The brokers offer trading on more than 300 tradable assets including Forex, crypto, commodity, indices and several others. Note that the minimum leverage offered by the trading site is 1:30 and the spreads are as low as 0.03. 

  • Headquarter: World Trade Centre, 1st Floor 28th October Street 359 3107 Neapoli, Limassol, Cyprus 
  • T1markets is regulated by CySEC (the Cyprus Securities and Exchange Commission)
  • Regulated under licence number 333/17
  • It is a trading brand of General Capital Brokers Ltd.
  • Registration number of GCB: HE 345774

Trading features offered by the broker 

1) Provides three retail accounts (gold, silver and platinum) and professional, Islamic and demo accounts. You can choose any based on your demand.

2) Trading platforms available for trading are Web Trader and Mobile app.

3) Provides trading on more than 300 asset class including Forex, commodity, indices, stock, cryptocurrency and several more 

4) Research instruments offered by the broker includes economic calendar, earnings calendar, trading signal, latest news 

5) Offers educational courses such as videos on demand, tutorials, webinars, classes, articles and eBooks. 

6) Commission-free trading 

Rounding Up

Alternative coins are gaining popularity increasingly and are a good investment option. Currently, Litecoin is leading the charts, but other top coins like Bitcoin Cash, Tether, and Ripple are also in the ultimate race. Apart from it, make sure to build your trading knowledge. Many top brokers provide educational material, like webinars, seminars, videos, guides, journals, e-books, and courses. The material is useful for both Beginners and professionals and keeps getting updated with brokers like T1Markets.  

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