The Complete Guide to Altcoin: Part II
Altcoins: Part II
As we covered in a post a few weeks back, Altcoin is a catch-all term used to describe all the types of cryptocurrencies other than Bitcoin. Bitcoin is the most popular and commonly known cryptocurrency. But, there are thousands of other types of coins available through cryptocurrency markets and exchanges.
Like Bitcoin, most Altcoins have significant privacy and flexibility advantages, while coming with the additional risks of being an unregulated marketplace.
Most importantly, each individual altcoin comes with its own strengthens and weaknesses.
A good altcoin investment strategy is never tied to just one coin. You must diversify your coin portfolio by mining or buying a variety of different kinds of altcoin.
As a reminder, Litecoin is the major cryptocurrency with the cheapest transaction fee. When buying smaller coins, it’s helpful to use Litecoin to minimize transaction cost.
Additionally, some services are beginning to offer transaction fee free trading. Robinhood Crypto is a prime example. This service is an offshoot of Robinhood, a widely popular app that allows users to trade stocks without fees.
Unusual & Valuable Altcoin Profiles
As a continuation of our last article, I’m digging into more types of altcoin. In this article, however, I’m not going to cover the industry leaders like last time. Instead, I’m going to explain a few newer and more unique coins.
This is by far one of the most interesting concepts being explored by a blockchain technology. Decentraland is an entire virtual reality built off of blockchain. In Decentraland, you can “create, experience, and monetize content and applications.”
But that sounds so sanitary. What they mean is that you can watch live music, shop with friends, even visit an underwater resort. And it all happens within a 360-degree virtual world. This world is built on the purchase of land within the virtual universe. The blockchain creates a permanent “deed” of your ownership.
You’ll be able to have an avatar, interact with other players, and build custom items.
More than 3,000 people purchased more than 70,000 parcels of land for millions of dollars in the last auction round.
If you’re familiar with the movie coming out called Ready Player One, or the book it’s based on, this may seem familiar. The seeds of the truly immersive and immense virtual reality world in Ready Player One can be seen in Decentraland. While still in the early stages, this technology has significant potential.
Civic isn’t fun in the way that Decentraland is. However, it’s no less fundamental to what the future will look like. Civic allows for identity verification to be on-demand, secure, and lower cost. Instead of entirely new background checks for each job, these could be done via Civic. Or, you could ensure the person you’re contracting with is who they say they are. Civic calls this their “identity ecosystem.”
And while the current uses could certainly be disruptive to some markets, there’s more. If a blockchain tech like civic becomes advanced, secure, and established enough, it could be used to vote. Even in political elections. In some ways, Civic is already more secure then many systems used in elections. Civic could not just disrupt but revolutionize parts of society.
In a world where data breaches and identity theft are all too common, Civic has incredibly potential. That’s probably why it won the Best New Startup award at the K(NO)W Identity Conference in 2017. And why a billion tokens have been issued.
FunFair is one of those platforms where you immediately go “oh of course.” It’s the sort of functionality blockchain can be great out. Essentially, FunFair aims to be an online casino platform. By leveraging blockchain technology, FunFair hopes to create instant trust and security. While there are other blockchain casinos and traditional online casinos, FunFair believes it can combine the best of both with few of the downsides of either.
It also promises low operating costs and a rich user experience. If it pairs up more closely with a platform like Decentraland, things could get really interesting.
Bananacoin is a coin that’s almost to odd to be real. But it is. It touts itself as being an “environmentally friendly plantation in Laos.” Essentially, the plantation or someone related to it has released a token built through Ethereum. The coin is connected to the export price of 1 kg of bananas. In this way, it’s backed by an actual commodity. This means your money has some actual tangible real world value.
This is the exact same monetary theory that was the reason we kept gold in Fort Knox. Essentially, if money is tied to an amount of a real thing, you can be more confident in it. Except this is bananas. Literally.
That being said, they’d sold millions of coins as of the writing of this article.
Weekend Millionaire’s Club (WMC)
Don’t buy this one. Seriously, don’t. No reverse psychology, it’s just not a coin that truly has any potential value. I’m including it to show you something to watch out for. Even if it is, in theory, a cool idea, the practically challenges are significant. I’ve explained it as best I can figure out.
So, you buy WMC’s token. Once bought, you can use this token to bid on contracts that will come out periodically. Bidding “burns” or destroys your token. So why would you want to do this?
Because the contracts are for a special “millionaire” vacation for you and five other people who are chosen. You will spend a luxurious weekend with a special influencer or celebrity and live likes millionaires.
It sounds cool but it seems a lot like playing a shady, unregulated lottery. Might be fun to watch the TLC show on this one though.
Investing in Altcoin Moving Forward
These are only a few of the thousands of existing coins. More and more coins are released through special assets sales called initial coin offerings (ICOs) every day. One of the primary things you should look for in any coin is functionality. Coins are reflections of their blockchain functions. The more useful the function, the more valuable the coin.
The best way to invest is to think what might be valuable in the future. Will millions scramble to log on to a VR platform with their friends? Will we need a more secure method of protecting our identity? Or will blockchain serve an even more important purpose? Those questions for you to answer as you make your investment decisions. Happy hunting.
P.S. We have plenty more Cryptocurrency Articles to read!
- Machine Learning Basics - April 16, 2018
- Vital Information About Cryptocurrency Wallets - February 12, 2018
- The Complete Guide to Altcoin: Part II - February 5, 2018
- How to Invest in Bitcoin: A Complete Guide - January 29, 2018
- Blockchain Explained - January 22, 2018
- The Basics of PPC Management - January 18, 2018
- Altcoins – What are they, and why are they useful? - January 15, 2018
- Beginner’s Guide to Backlinks from a Link Building Expert - January 11, 2018
- Ultimate Bitcoin Guide: How Does Bitcoin Work - January 8, 2018
- How SEO Works: What Every Business Owner Should Know - January 4, 2018