Investing in Altcoins: Start Now
Bitcoin is still king, but there are lots of cool projects out there that you could investigate. There are some serious limitations on BTC that altcoins are working to overcome.
Without Lightning Network, Bitcoin transactions can take a while to be processed and be expensive, depending on the network’s speed; on the other hand, other projects offer much better performance and transaction fees.
There’s more: altcoins can be far more than just digital assets: Ethereum, for instance, is mainly a smart contract platform that uses ETH, its native token, to validate automated contracts inside its blockchain.
Here are some tips on how to invest in altcoins:
Studying the market
It’s crucial to study markets in depth before buying anything. Some of them are very similar, but there are some key differences outside the box.
Binance Smart Chain (BSC) is a blockchain-focused on digital assets and smart contracts, just like Ethereum, but centralized; Polkadot reminds of Ethereum 2.0, but with “cross-chain” functionality, and so on.
Each project has its level of acceptance and implementation — and that will determine the market volume and their volatility. Check the whitepaper, roadmap, effective partnerships with other businesses, etc.
Look for more than crypto
Innovation is key inside the Web3 concept. Check out the main issues faced by users and developers alike and projects that aim to solve them in the long term.
Metaverse is a great example of something that goes way beyond crypto. Decentraland (MANA) and The Sandbox (SAND) are great examples of cool environments to invest in and enjoy.
Non-fungible tokens (NFTs) are the thing: according to DappRadar, this single niche moved around US$ 25 billion in digital assets during 2021.
Investing in CSHOP
E-commerce is one of the biggest online niches in the whole world. CoinShopp is when a traditional marketplace meets decentralization and freedom for its users.
Since Web3 means less centralization and the liberty to make things your way, choosing e-commerce that respects your money and your privacy is a must.
Would you like to know more? Check out our full article on how to buy and use CSHOP!
The bottom line
The fundamentals are clear: study (a LOT) before buying anything since altcoins are usually way more volatile than Bitcoin.
Search for consistent and innovative projects that offer more than just digital assets: don’t forget that NFTs and metaverse are extremely popular and expected to grow exponencially throughout the years.
Don’t forget to diversify your portfolio: it’s too risky to put all your coins into a single project.
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