Coinranking
Trending Altcoins
| Coins | Price | 24h | |
|---|---|---|---|
| |  Illuvium ILV | $ | +31.52%  |
| |  Onyxcoin XCN | $ | -5.01%  |
| |  Snek SNEK | $ | -4.97%  |
| |  Simons Cat CAT | $ | -2.59%  |
| |  Pudgy Penguins PENGU | $ | -6.98%  |
Top gainers
| Coins | | | |||
|---|---|---|---|---|---|
| |  MYX MYX | $ | +327.37%  | ||
| |  TOWER TOWER | $ | +74.26%  | ||
| |  LayerAI Token LAI | $ | +51.88%  | ||
| |  TROLL TROLL | $ | +51.83%  | ||
| |  The Spirit of Gambling TOKABU | $ | +44.97%  | ||
| All gainers | |||||
What are Altcoins?
The term Altcoin comes from combining "alternative" and "coin" to form "altcoin." It refers to all cryptocurrencies that are not Bitcoin.
Types of altcoins
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Stablecoins
Stablecoins are digital currencies that aim to keep their market value stable by linking it to an external point of reference. This makes stablecoins a better choice for purchases since it maintains a stable value. Some better known stablecoins include :
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Memecoins
A meme coin is a type of cryptocurrency that is associated with popular online trends, often represented by funny or animated memes. These coins are supported by enthusiastic traders and followers on the internet.
Some commonly known memecoins include:
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Staking coins
Staking is a process where you hold onto your digital money for a certain time to help a blockchain system work smoothly. By doing this, you get rewarded with additional digital currency.
Some cryptos you can stake:
DeFi essentially means Decentralized Finance.
DeFi changes how our financial institutions work by removing the need for middlemen like banks, brokers, and financial companies. DeFi allows individuals by allowing peer-to-peer digital transactions of assets
Some DeFi coins to know:
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Privacy coins
Privacy coins, also known as "private coins" or "anonymous coins," are digital currencies that keep all transaction details hidden to prevent any connection between an individual and the transaction. This includes concealing information like the amount of the transaction and the current balance of wallet addresses.
Some examples of privacy coins include :
Should I invest in altcoins?
Altcoins are alternative digital currencies that offer more uses than Bitcoin, which is mainly used for storing value. Altcoin prices could increase significantly if they become widely accepted.
However, there are some drawbacks to buying altcoins. With so many options available, it can be difficult to choose the best ones to invest in. Altcoins carry more risk, and many of the smaller ones may not be trustworthy investments and could even be scams.
If you're an active cryptocurrency investor who is willing to do thorough research, it's worth exploring altcoins. Remember to be cautious and not take on too much risk.
How to use the Bitcoin dominance to trade altcoins?
Bitcoin dominance, also known as BTC dominance, refers to the proportionate market share or dominance of Bitcoin in relation to the overall cryptocurrency market.
BTC dominance is also referred to as the Bitcoin dominance index or the Bitcoin dominance ratio.
The level of Bitcoin dominance is determined by comparing the overall market capitalization of Bitcoin with the combined market capitalization of all other cryptocurrencies.
Historically, Bitcoin Dominance has been a good indicator of where the market is and where it is heading.
There are generally two seasons you could look out for within the crypto market : Altseason and Bitcoin season
Altseason or better known as Altcoin season refers to a period where non-bitcoin cryptocurrencies, known as altcoins, outperform BTC.
During Bitcoin season, Bitcoin outperforms all altcoins.
Here are a few scenarios that might help you out when trading with altcoins:
- Scenario 1: Bitcoin dominance decreases, but Bitcoin price increases
When the dominance of Bitcoin decreases while its price goes up, it means that altcoins are performing better than Bitcoin in a positive market.
- Scenario 2: Bitcoin dominance decreases and Bitcoin price decreases
If Bitcoin dominance decreases alongside a decline in Bitcoin prices, it could indicate a bear market, and most cryptocurrencies are likely to experience a drop.
- Scenario 3: Bitcoin dominance increases and Bitcoin price increases
When Bitcoin dominance increases along with a rise in Bitcoin price, it means that Bitcoin is outperforming altcoins.
- Scenario 4: Bitcoin dominance increases, but Bitcoin price decreases
When Bitcoin dominance increases while Bitcoin prices decline, it indicates that altcoins are performing better than Bitcoin.
Investors should be aware that the Fear of Missing Out (FOMO) sometimes leads to impulsive trades in an attempt to make quick profits. Additionally, some investors tend to panic-sell at the slightest sign of a market downturn. Such reactions can cause short-term fluctuations in crypto prices and its dominance.
Is it better to buy Bitcoin or altcoins?
Deciding whether to buy Bitcoin or altcoins depends on what you want to achieve with your investment, how much risk you can handle, and how well you understand the specific altcoin you're thinking about. It's a good idea to do careful research, think about the project's basics, technological advancements, and market trends before you decide to invest. You might also consider spreading your investments by having a mix of Bitcoin and a few selected altcoins in your portfolio.