Even novices to the world of cryptocurrency probably know a lot about Bitcoin. After all, it is the biggest player in the market, it was the first of the many cryptocurrencies to emerge, and it has dominated the financial news cycle thanks to its rapid growth in value. All of that brand recognition is obvious in its price, which may be a bit steep for some investors, especially if they fear that Bitcoin doesn’t have much more room to grow. That might be why investors turn to coins other than Bitcoin to try and make the most profits in the world of crypto.
The coins, sometimes called alternative coins or alt-coins for short, may be trying to become currency alternatives like Bitcoin, or they have been mined to support some other endeavor. In any case, they can make for lucrative investment opportunities, whether you’re choosing them yourself or getting the help of a trading system such as Ethereum Code. The problem for the investor is that there are so many of these alternative coins that it can be difficult to tell which of them are worth anything. Here are some tips on navigating the weird, wild world of alt-coins.
- Invest in the Idea
If you look at the coins that have made it through the morass of alt-coins to gain a solid part of the market share in the cryptocurrency market, you’ll note that they all have a strong idea behind them. Each was able to define a niche separate from the one already carved out by Bitcoin and, as a result, had a built-in advantage in attracting investors.
- Backing the Builders
Let’s face it: A wonderful business idea can come from anywhere. The problem is that even the best idea isn’t worth anything without the kind of acumen and experience to push it through the competition and get it to the masses. That’s why you should make sure that the brain trust of the alt-coin in which you’re planning to invest has a solid track record of success in the business world or, ideally, with other startup companies. If they’ve succeeded once or a few times before, chances are they’ll have what it takes to do it again.
- Watch the Pitch
When you go to the website or talk to founders of some sort of alternative coin, you will either see or hear a pitch all about their coin. If the focus of the pitch is on the positives that will be brought about by the introduction of this coin into the world, you might be on to a legitimate prospect. If, on the other hand, you hear a lot about how much money you’ll make without any lip service to the basic idea, you are most likely looking at a scam.
These are just a few of the ways to separate the wheat from the chaff among alt-coins. Tread lightly and with great care and you’ll likely find a winner or two among the bunch.