You have now decided to step into the world of cryptocurrency. Hope, you have become a little familiar with bitcoin and now you have friends talking about ETH, XML, LTC , Tron etc. Are you wondering about what these are? These are called altcoins. Trading and choosing the best altcoin wisely can make you a millionaire.
No worries! This article will guide you with the same.
This article includes:
What are altcoins?
How do I Purchase Altcoins ?
- Research and make a decision.
- Decide how you will need to buy the coin.
- Choose the right exchange.
- Fund the account and make the purchase.
So, let’s take a look.
What are altcoins?
An altcoin is a common name for any digital Cryptocurrency other than Bitcoin. The term is said to stand for “alternative to Bitcoin” and is used to describe any Cryptocurrency that is not a Bitcoin.
Generally, they project themselves as better substitutes to Bitcoin. The success of Bitcoin as a digital currency has resulted in varieties of altcoins. For example: Ethereum, Litecoin, Stellar, Ripple etc.
Are you wondering how to buy them? Keep reading below for a simple guide to purchasing altcoins.
Steps to purchase altcoins:
- Research and make a decision:
While Altcoin projects benefit from their enormous growth potential, many projects fail or have a short life span. Crypto traders should research different altcoin schemes and decide how much risk they can afford. And buyers should think about why they want to purchase a particular altcoin and make their choices based on their comfort level.
- Decide how you will need to buy the coin:
Many altcoins require crypto users to buy bitcoin first and then trade crypto for altcoins. Buyers should pay attention to the exchanges they use as fees can quickly add up, depending on the scope of the transaction and how the account is funded (Like with credit card, debit card). More popular altcoins like Ethereum or Litecoin can be directly purchased on many exchanges without having to first convert fiat to Bitcoin.
- Choose the right exchange:
Those looking to buy altcoins should stay away from less popular exchanges. These platforms might lack in security or other issues that make it harder to purchase crypto. Larger exchanges will always have more liquidity, which means altcoin purchases will be able to execute quicker and closer to the actual market price. Before deciding on an exchange, people should make sure to study the fee structure and reputation of the platform before making an account.
- Fund the account and make the transfer.
Once an account receives funds, an altcoin buyer should either make the purchase directly or find the currency paid and trade Bitcoin for the chosen altcoin.
Now you have the necessary knowledge about the simple steps involved in purchasing altcoins. Therefore, don’t rush and fall in a trap because the world of crypto is wide and trends keep changing every now and then. Do thorough research and follow the steps mentioned in this article to avoid the greater risk.