With thousands of cryptocurrencies available out on the market and hundreds of exchanges across the globe, it has never been easier to start buying digital currency. Flagship crypto currencies like Bitcoin have always remained popular, but many traders express interest in altcoins due to their potential.
Altcoins, otherwise known as alternative coins, play an important role in the crypto world. They are enticing because they can offer different functions and capabilities beyond what a large crypto like Bitcoin can do.
With faster block processing and a different hashing algorithm, Litecoin is often deemed as an upgrade to Bitcoin. Developers can use Ethereum to build programs and smart contracts. Ripple users often use the coin for international money transfers due to its fast processing speeds.
Purchasing altcoins on platforms like CryptoExchange.com is mostly just as simple as buying Bitcoin. While some platforms require buying Bitcoin first and then trading the crypto for an altcoin, other exchanges give users the option to buy altcoins directly.
Keep reading for a simple guide to purchasing altcoins.
The Simple Steps To Purchase Altcoins
Research & Make A Decision:
While altcoin projects are lucrative due to their immense growth potential, many projects do fail or have a short lifespan. Crypto traders should research different altcoin projects and determine how much risk they are willing to take on their portfolios.
Prospective buyers should think about why they want to purchase a particular altcoin (as a pure investment, because they believe in the concept, etc.) and make their choices based on their comfort level.
To increase the chances of investing in a stable altcoin project, crypto users should check the altcoins trade volume on several exchanges, understand what types of wallets support the coin, and see if the project has a working website, updated social media, and other signs of activity on the Internet.
Decide How You Will Need To Buy The Coin:
Many altcoins require a crypto user to first purchase Bitcoin and then trade the crypto for altcoins. Buyers should be mindful of the exchanges they use, as fees can quickly add up depending on the scope of the transaction and how the account is funded (with a debit card, credit card, or crypto). More popular altcoins like Ethereum or Litecoin can be directly purchased on many exchanges without having to first convert fiat to Bitcoin.
Choose The Right Exchange:
Those looking to buy altcoins should stay away from less popular exchanges. These platforms might have gaps in their security or other issues that make it harder to purchase crypto.
Larger exchanges will always have more liquidity, which means altcoin purchases will be able to execute quicker and closer to the actual market price. Before deciding on an exchange, people should make sure to study the fee structure and reputation of the platform before making an account. Some exchanges will ask for a variety of personal information, while others are more privacy-focused and require fewer details.
Fund The Account And Make The Purchase:
Once an account receives funds, an altcoin buyer should either make the purchase directly or find the currency paid and trade Bitcoin for the chosen altcoin.
Secure Funds Off The Exchange:
Cryptocurrency should never be held or stored on an exchange unless immediately needed. The risks of hacking or other trouble are high, and there is a wide range of secure storage solutions. Altcoin holders should think about a hardware wallet like a Trezor or Ledger but should be mindful that some wallets will only support just a few altcoins. Hot wallets connected to the Internet are another storage option but are riskier than a cold wallet since they are network-connected.
The Simple & Easy Altcoin Buying Process
Investing in altcoins is an exciting prospect for any crypto user. Many of them have strong use cases, lucrative potential, and can be used to solve legitimate, real-world problems. They are also a good way to diversify a crypto portfolio and hedge against volatility (with an investment in a stablecoin).
Some altcoins are unique and fall into several classification categories, but these types of coins can be cutting-edge and open up new horizons for global e-commerce and finance. Altcoins remain an exciting and intriguing avenue in the world of cryptocurrency.
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