Becoming an Altcoin trader is no different than getting started with Bitcoin, the largest cryptocurrency on the market. In order to effectively become a successful Altcoin trader, there are a few steps to take to ensure you are moving forward in the right direction.
While Bitcoin is still the largest cryptocurrency on the market with an estimated valuation of more than $30 billion USD, Altcoins are steadily on the rise and are helping to diversify the market.
What are Altcoins?
Altcoins are alternative digital currencies that operate similarly to Bitcoin, utilizing blockchain, mining, and virtual wallets. Since the creation of Bitcoin, Altcoins have become increasingly desirable as they launch with a lower value, allowing anyone to get involved for a much lower original investment. Due to the increasing cost and value of Bitcoin, members of the cryptocurrency are flocking to new Altcoins in hopes that the coin they choose skyrockets in value similarly to Bitcoin.
Some of the most popular and rapidly expanding Altcoins within the cryptocurrency community include Litecoin, Ripple, EOS, Zcash, Stellar, and Tron. There are currently hundreds of Altcoin options to choose from, which is why having a firm grasp on how cryptocurrencies work and which Altcoins are succeeding the most is essential before making an investment of your own.
Research Altcoins and Get Engaged
Getting involved when a new Altcoin is launched is risky and does not always deliver immediately, though it is best to make an investment in coins that are relatively cheap and on the rise. Research current trending Altcoins and join online communities such as
Bitcointalk or CryptoCoinTalk to keep track of news and updates regarding the release of new Altcoins.
Set up Google Alerts to receive immediate news related to Altcoins and other cryptocurrency keywords of your choice. Track and monitor popular cryptocurrency exchanges such as Coinbase to keep an eye on growing Altcoins and market trends.
Compare Cryptocurrency Exchanges
Compare popular cryptocurrency exchanges including Coinbase, Bitstamp, Bitpanda, and Kraken (among others). Browse the exchanges to find an interface that works for you and to seek out an exchange that features or covers updates pertaining to the Altcoin you wish to purchase.
Get Yourself a Virtual Wallet
Obtaining a virtual wallet is the first step to getting involved with cryptocurrencies aside from registering as a member on a cryptocurrency exchange site. Virtual wallets keep track of your digital cryptocurrency and provide a streamlined solution to buy, sell, and trade your coins. If you are new to cryptocurrency, consider using Coinbase as a starting point, one of the largest cryptocurrency exchanges in the US. Coinbase not only provides a live exchange market, but a virtual wallet to help get you started with less hassle.
There are alternative virtual wallet solutions such as
Blockchain and Exodus.
Consider whether you prefer a mobile virtual wallet that is accessible using Android and iOS devices or if you prefer a hardwired wallet that only allows you access to your cryptocurrency funds using a standard desktop setup.
Follow Market Trends and Play it Safe
Unless you have a massive amount of disposable income available to risk, play it safe when choosing a new Altcoin to back and financially support. Follow market trends using online forums, communities, groups, and crypto-centric blogs. Test the waters with multiple growing Altcoins while monitoring and tracking results using live reports available from popular exchanges. Buy, sell, and trade once you become comfortable with the system and see a clear path for success with your preferred Altcoin.
Becoming an Altcoin trader is as simple as getting started with a virtual wallet and Bitcoin. Once you have a complete understanding of the digital currency marketplace along with virtual wallet providers, choose an Altcoin that shares your same vision for a non-fiat currency future.