The story of cryptocurrency began with the introduction of Bitcoin (BTC) in 2009. Since then, crypto has come a long way and there are thousands of cryptocurrencies circulating in the market. Bitcoin is a first-generation cryptocurrency, and one Bitcoin may be out of your reach now. But since there are other cryptocurrencies present in the market, you can start investing in crypto today. Cryptocurrencies other than Bitcoin are known as altcoins. These are second-generation and third-generation coins that you can buy.
According to the recent estimations, there are nearly over 10,000 cryptocurrencies worldwide. It can be difficult for you to decide how you can safely buy any of these cryptocurrencies.
Let us find out how you can safely buy altcoins in 2022.
What are Altcoins?
An altcoin is the abridged version of an alternative coin. Altcoins include all cryptocurrencies other than Bitcoin.
Some of the popular altcoins include Ethereum (ETH), Uniswap (UNI), Litecoin (LTC), Cardano (ADA), and more.
Since the launch of Bitcoin, many cryptocurrencies have been introduced into the market. These cryptocurrencies offer an alternative for investors who cannot afford Bitcoin.
But altcoins are important for another reason too.
Altcoins are an effective way to diversify your crypto portfolio. Crypto is highly volatile and your returns can fluctuate at any time.
So, you should avoid investing all your money in one cryptocurrency instead own several coins.
Carl Runefelt, alias, The Moon, is a global crypto leader who believes in the mass adoption of cryptocurrency.
He says, “Sell coins when they hit the top value and purchase another coin, take your profits, and buy other coins as cryptocurrencies are highly volatile. This applies to everything whether it is Bitcoin or any other coin.”
How to Buy Altcoins?
There are a just few steps that you need to follow when you are looking to buy altcoins.
Today, nearly 600 crypto exchanges are operating worldwide inviting investors to buy cryptocurrency. But buying crypto becomes easy when you are aware of some important things.
Here is how you can safely buy altcoins.
Determine the Percentage of Your Investment
As a crypto investor, the first thing you should do is to determine the percentage of your investment.
Altcoins are extremely volatile. But this does not mean that they are not worth investing in.
It is recommended you should invest in crypto that you can easily afford to lose. Cryptocurrency is volatile and you can lose your money within seconds.
So, always be careful about what you are investing in.
Find the Best Altcoin
You can consider several factors when you are looking to buy altcoins.
But the most key factor is to find the best altcoin to purchase.
Carl on his YouTube channel, The Moon, says, “To make huge profits from investing in cryptocurrencies, one must carry rigorous market study and notice the factors which affect a particular cryptocurrency.”
You should study the trade flow chart of a particular altcoin before buying it. This will help you find the right time to trade the coin.
Choose an Exchange
Once you decide about the coin that you want to purchase, the next step is to choose an exchange platform. Many exchanges are working in the crypto market through which you can trade crypto.
An exchange is a platform that allows you to buy, hold, and sell cryptocurrency. You can buy altcoins with traditional currency or fiat using a credit card or can exchange your existing coins if you already hold crypto.
You should remember that there are several altcoins which you can only buy by exchanging crypto – for instance, Bitcoin for Cardano.
When you are choosing an exchange platform, there are a few points you should consider.
- Is it reputable?
- Has it been hacked before?
- Are its fees and rates reasonable?
Move Your Altcoins into a Wallet
Once the purchase of altcoins is completed, you should move your altcoins into a wallet.
A crypto wallet is a place where you can hold your cryptocurrency for as long as you want to.
There are two types of wallets: hot wallets and cold wallets.
A hot wallet is connected to the exchange and is live on the internet. On the other hand, a cold wallet is an offline wallet that is not connected to the internet.
You can move to any part of the world with your altcoins saved in your wallet. You must not forget that you should never share the key to your crypto wallet with anyone.
The global financial market is gradually moving towards the mass adoption of cryptocurrency.
Countries are already recognizing crypto as their official currency. By following the above-mentioned steps, you can easily purchase altcoins and make a lot of money in the future.