This time, I will summarize the altcoins that are attracting attention this year.
I will explain the currencies that can be expected in the future in an easy-to-understand manner, so if you are considering investing in altcoin from now on, please read it to the end.
What is altcoin?
Altcoin is a general term for virtual currencies other than Bitcoin, and is an abbreviation for “Alternative coin”.
Since it was created one after another after the birth of Bitcoin, there are many virtual currencies that have improved the problems of Bitcoin such as scalability problems and soaring remittance fees.
Altcoin is now free to generate tokens from another cryptocurrency with a platform, so there are now more than 2,000 types .
There are many altcoins, but it is said that only about 100 of them are traded frequently.
Also, among altcoins, the currency with the lowest market capitalization is sometimes called ” grass coin “.
Benefits of investing in altcoin
Next, I will explain the merits of investing in altcoin instead of bitcoin.
- If you want to invest in altcoin from now on, please check the benefits here.
- You may be able to aim for a larger profit than Bitcoin investment
- Altcoin is generally cheaper per unit, so you can buy a lot of money.
In addition, some currencies move 20% or 30% a day, so you can expect a larger increase in profit than Bitcoin by purchasing in large quantities at a low price.
Bitcoin was also of little value when it was born in 2009, but the price has continued to rise and is now worth about 6.5 million yen per BTC (April 2021).
Although the price does not rise constantly like Bitcoin, there are a number of coins that exploded at once and gave birth to the so-called “billionaire”.
This is a virtual currency called Verge, but it recorded a sharp rise and swelled more than 10,000 times.
In particular, altcoin does not have millions of usd per coin like Bitcoin, but there are currencies of 1 usd or less per unit, so you can purchase a large number of coins with a small amount of money.
If you invest in altcoin, which has the potential and is still low in price, and the price of that coin rises, there is a good chance that you will make a big profit.
There are many characteristic coins
Altcoin has many characteristics in each coin, and there are many that have technologies that Bitcoin does not have.
If its performance is noticed and adopted by countries and companies, the price may rise.
For example, Ethereum is gaining attention as a platform for distributed applications, and with the popularity of Decentralized Finance, the price of Ethereum has increased.
Easy to diversify
Since there are many altcoins, it is easy to make diversified investments.
If you invest only in Bitcoin, your assets will decrease when the price of Bitcoin falls.
The same is true for stocks, but it’s safe to avoid investing all in one cryptocurrency because of concerns that your profits will be low.
By investing in various cryptocurrencies other than Bitcoin, if the price of Bitcoin plummets and the price of other cryptocurrencies does not fall, the damage to assets will be small.
For those who want to hold it for a long time and wait for the timing, we recommend choosing famous altcoins such as Ripple and Ethereum .
Features of altcoin that will grow in the future
Next, I will explain the characteristics of altcoin that may grow in the future.
If you are worried about investing, please check these features.
Clarify future vision
One of the characteristics of altcoin that will grow in the future is that it has a clear vision for the future.
Depending on the coin, the content of the project may be unclear or development may not be progressing at all.
In addition, there are some that are technically difficult to give up even if they are willing to proceed with development.
It is best to invest in a currency with high performance and high demand, given that you have a clear vision for the future and that your project is progressing.
Performance is attracting attention in various fields
Among the altcoin technologies, the high performance of smart contracts (automatic contract function) and blockchain is attracting worldwide attention, and it is adopted in various fields and services are affiliated.
Verge, which exploded during the cryptocurrency bubble, also rose in price in anticipation of the future due to the possibility of implementing smart contracts.
The price of altcoin with such high performance can be expected to rise.
Development is in progress
Some altcoins publish their development progress on their official website and SNS.
By clearly clarifying the current development status to the user, the altcoin will be recognized as safe by the user and the transaction volume will increase.
Some altcoins have not been developed at all, so if you disclose the progress of development, you will be able to trade with more peace of mind.
Recommended ranking and list of altcoin
Let’s take a look at Altcoin, which is attracting attention in 2021.
If you want to decide which altcoin you want to invest in as soon as possible, please refer to here.
- Ethereum (ETH)
Ethereum (ETH) will be the second largest altcoin in market capitalization as of April 2021.
However, Ethereum is originally a platform that can do various things such as smart contracts and Dapps development using blockchain.
The currency used on this platform is called ETH and is traded on exchanges.
- Engine coin (ENJ)
Engine coins are coins that can be used for buying and selling on an online game platform called Enjin .
Normally, you can buy and sell in online games only in the same online game, but in Enjin you can buy and sell in different games.
Enjin can create new tokens and manage the created tokens together.
- Litecoin (LTC)
Litecoin inherits the characteristics of Bitcoin and is more suitable for payment, with a market capitalization of 7th.
It is an altcoin released by former Google employee Charlie Lee, and it is a currency created for the purpose of payment like Bitcoin.
Bitcoin takes about 10 minutes to generate blocks, but Litecoin can generate blocks in about 2.5 minutes.
- Monacoin (MONA)
Monacoin is a domestically produced altcoin born in Japan, and is a virtual currency with the image character of 2channel’s ASCII art “Monacoin”.
There were many fans from 2channel, and the development of related services that could be used as a payment method was promoted.
In addition to being able to send money without disclosing personal information, Monacoin attracted attention as the world’s first altcoin equipped with a technology to delete electronic signatures called Segwit.
- Quantum (QTUM)
Quantum implements smart contracts, which are automatically contracted and even more anonymous.
It uses a light wallet that is even lighter and saves storage space.
This high degree of anonymity, smart contracts, and the adoption of light wallets are compatible with the business and have the potential to be utilized.
If Quantum technology is adopted, the value will increase further.