What altcoins to buy in a new year? We are ready to present you a small guide to the altcoin world and a brief overview of the best altcoins to invest in.
Before you buy altcoins, let’s find out what the word itself means.
“Altcoin” is a combination of the two words “alternative” and “coin.” Altcoins are all the cryptocurrencies other than Bitcoin. Some investors even point out that altcoins may be those coins that are not Ethereum as well because most cryptocurrencies are usually forked from either Bitcoin or Ethereum.
Usually altcoins try to distinguish themselves from these two by using other consensus mechanisms and opening new blocks. Developers do it as they have different visions on crypto and its utility. Many altcoins are developed to compete with Bitcoin as means of payment.
By the way, get an international merchant service to accept payments in altcoins.
Here is a brief description of every altcoin type:
These altcoins are designed to be used as currency. Bitcoin Cash is an example of such coins.
Cryptocurrencies are volatile and the only way to use crypto without the fear of price change is to use stablecoins. The volatility is reduced by pegging the price of the crypto to other assets, such as physical currencies and values, such as fiat, precious metals, or even other cryptocurrencies.
Tether’s USDT is the most notable stablecoin out there. It is pegged to the USD and is widely used to save crypto assets from volatility.
These assets are tokenized stock market securities. The process of tokenization is a transfer of value from an asset to a token. Anything can be tokenized – from stocks to real estate. Although, the asset tokenized must be secured and held, as it adds value to the token.
Utility tokens are used to provide services within a network. Use them to pay network fees, purchase services, or redeem rewards. The tokens can be purchased on exchanges and held, but they are meant to be used in the blockchain network to keep it functioning.
Meme coins are inspired by jokes or a silly take on other cryptocurrencies. They usually get hyped on the internet and gain a short period of popularity. This allows the investors to obtain short-term gains.
The rights for voting for changing a protocol or having a say in decisions are what is allowed for the holders of governance tokens. They are not the same as utility tokens as they are native to a private blockchain and are used for blockchain purposes.
Which new altcoins are worth buying this year? Here is a list of new good altcoins with potential for growth:
Tamadoge (TAMA): It is a memecoin that has its own purpose. Tamadoge is a part of a Play-to-Earn crypto NFT platform that allows users to mint, train and take care of their virtual puppies.
Battle Infinity (IBAT): Another P2E gaming ecosystem that exists in NFT, DeFi, and Metaverse forms. The IBAT is a native altcoin that covers all needs of users.
Lucky Block (LBLOCK): The biggest altcoin to reach $1 billion market cap value.
Enecuum (ENQ): It works on a unique protocol that unites all mobile devices in a single network offering vast reserves of computing power to its users.
We compiled a list of the best altcoins for you:
Ethereum is the second largest coin after Bitcoin and the biggest altcoin. The digital asset has all the potential to become even bigger.
It is an open-sourced and distributed computing network. Being a favorite of program developers because of its potential applications: non-fungible tokens (NFTs), smart contracts hosting and dApps creation.
One of the oldest altcoins. It’s just a peer-to-peer digital asset. The uniqueness of it is in Litecoin’s fully decentralized nature. The coin aims to overcome Bitcoin by its fast confirmation speed.
Dogecoin is one of the most popular cryptocurrencies to buy this year. The open-sourced digital currency works on a Proof-of-work consensus. It is an original meme coin that started as a joke in 2013. The token became popular because of the social media backing led by Elon Musk. Gaining a huge amount of attention, Doge soon became a prominent cryptocurrency.
Bitcoin Cash is a faster and cheaper fork of Bitcoin. While Bitcoin is regarded as a store of value like gold, Bitcoin Cash is treated as a payment provider.
Tether is not like the other cryptocurrencies in the list. It is a stablecoin, which means that the asset is backed up by fiat currencies and keeps a value equal to the currency it is pegged to. Tether value is supposed to be more stable than the value of other currencies. Investors who are wary of the extreme volatility of other coins prefer it to other coins.
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