Altcoins, the latest innovation in the field of digital currency, are starting to be looked at seriously by the investment community. The phenomenon is taking place at a time when many are watching their budgets closely as the economy continues to recover from the recent economic turmoil. One reason that investors are turning to these digital options is because they offer many advantages that traditional currencies do not. For instance, altcoins do not have to be backed by any government. They can exist independently, and they are not subject to any central governing body.
Altcoins are also short for virtual currencies. As in, an alternative currency to bitcoins. However, unlike bitcoins, altcoins aren’t actually physical coins. Like bitcoins, altcoins are virtual currencies. According to Cryptocurrency expert and entrepreneur Jonathan Lewis, “altcoins are digital assets that can be traded and stored on Internet based computer servers.”
Some of the more popular altcoins include Dash, Litecoin, Dogecoin, Peercoin, and Stellar Lumineer. There are also several new lesser known currencies including Nxt, Pecunix, Dooney and Bourke. One of the best characteristics of these newer cryptosystems is that they work just like the original bitcoin but are placed in a separate network. This separation allows users the ability to track transactions and provide incentives for service as well.
While it is true that there aren’t any government or financial institutions backing litecoin, the value is based primarily on hype rather than hard facts. This hype has resulted in a significant jump in demand for litecoin, to the extent that it currently trades above the average daily volume of bitcoin. Moreover, litecoin investors will have little trouble finding a reputable broker to purchase this precious asset. While other cryptosystems may suffer short-term bumps in functionality, the long term outlook is strong and includes significant increases in market cap.
The top 7 largest altcoins by market cap are also listed as a definitive list of world currencies. They are as follows: the Canadian dollar, Swiss franc, Japanese yen, British pound, Australian dollar, Euro, and the American dollar. This list provides a great deal of insight into the diverse behavior of buyers and sellers throughout the world. Altcoins serve as a bridge between the core currencies of a particular country, and the local market where they can be purchased and held. In addition to providing useful information for investors, this type of market research also serves to give an idea of the relative strengths and weaknesses of different currencies. As we mentioned in our previous blog post, a key goal of the management team of the Dogecoin project was to enable the expansion of the Dogecoin exchange at a rapid rate, allowing new investors the opportunity to participate in this growing market with confidence.
By identifying which currencies are the best altcoins according to your criteria, you are able to find a trusted partner to help facilitate your trades. There are a number of free and paid services available to help guide in your decision making. Many traders have benefited from using automated software programs that identify the best currencies to purchase. The most reliable marketplace will provide a free trial to allow you the opportunity to test its algorithms and discover how it makes profitable trades. Many of these services will provide the best altcoins by analyzing the relative performances of several dozen of the world’s most popular currencies and then presenting a list of the best performing coins accordingly.