Best Altcoins? How do you choose the right one? With so much information out there it’s very easy to get caught up and make a decision that you will regret later. Don’t fall into any hypes or listen to people who love to “pump and dump” the best altcoins. Further you need to make an educated decision vs. reading XZY coin will hit $X in 3 days!
Please not this should not be regarded as financial or legal advice. Please be mindful of any and all regulations regarding cryptocurrency in your particular jurisdiction. Never invest more than you are willing to lose.
What is an altcoin? In simple terms. Anything that’s not Bitcoin.
How do you pick the best altcoins? Here is my strategy I use when I am picking an altcoin:
- Got to Coinmarketcap.com to see if the altcoin is listed. First take a look at the chart and see if the altcoin has had any major runs or dips. CMC will also show you the exchanges the altcoin is available on.
- Visit the website of the altcoin (Coinmarketcap will have a link.) What is the function of the altcoin? What problem is it going to solve? Is it a cool technology? Does it make life easier?
- Is there a whitepaper for the altcoin? Make sure you read it and it makes sense. Even if you are not technical you need to understand what it’s trying to solve. How old in the whitepaper? Do they keep it updated?
- Who is the team? The website should list the teams with their credentials. Who are they? Are they credible? What is their background? And most important how many are there? I have seen too many “one man” teams which isn’t good.
- Anyone backing the altcoin? Always look to see if any big organization is backing the altcoin. For example, Stellar is backed by IBM.
- Any news on the altcoin? Search Google and see if the altcoin has made any headlines recently.
- Visit Reddit and read the forums for your specific altcoin. There you will see what others are saying about the altcoin.
Be very careful with websites who like to pump coins and then dump them once the price has gone up. You will not be able to recover from that. Most legit altcoins must be relative, in other words they need to provide some value or use.
Also, be aware of people who create FUD. Fear, Uncertainty and Doubt. These are the same people who like to pump and dump the best altcoins.
Please be well informed before you make any decisions on the best altcoins. Read articles about Cryptocurrencies, listen to Podcasts and be aware of what the market is saying. The crypto market is very volatile.
If there is one thing you can take from this post, whatever you invest in, make sure your currency is protected. Either purchase a hardware wallet, download a digital wallet or use a paper wallet. Make sure you are not depending on the exchanges.
Hope this helps. Please share and comment if this was useful.