Alt Coin Investment
Have you ever considered an Alt Coin investment in New Zealand? We know it sounds scary and complicated, but there's a lot less to it than you think. This is a concise, easy-to-read guide with just enough technical jargon to give you the edge when adding Alt Coins to your investment portfolio.
Check out the basics of cryptocurrency especially alt coins. Invest In Alt Coins In New Zealand
Beginners guide to investing in Dogecoins. Learn all about Doge coins. DOGE
All you need to start investing in Litecoin in New Zealand. Learn the basics now. LTC
Looking to invest in Stellar then you need to the basics of it. How it works and why it has any value as an investment. XLM
Looking to invest in Bitcoin cash from New Zealand then you need to know the basics. Learn the basics of what it is and why it has value. BCH
Alt Coin Investing 101
Cryptocurrencies are digital currencies that use encryption techniques to regulate currency units’ generation and verify the transfer of funds.
Cryptocurrencies are not issued by central banks, and their value does not depend on central bank policies. They are not backed by any physical commodity, although they may be pegged to a physical asset such as gold.
The word cryptocurrency is generally used in reference to Bitcoin, which was the first blockchain-based cryptocurrency. The cryptocurrency community also refers to cryptocurrencies as altcoins (alternative coins). These are cryptocurrencies other than Bitcoin
What is Altcoin?
Altcoins are all the alternative cryptocurrencies other than Bitcoin. That’s every cryptocurrency that isn’t Bitcoin.
Bitcoin was the first mainstream cryptocurrency to be created, and therefore it has had the most time to grow and develop. As a result, it has become the largest market cap coin, with a current market cap of over $60 billion NZD. However, Bitcoin has become slow both in terms of transaction speed and adaptability as new technologies have come out. Therefore altcoins have been created to take advantage of these newer technologies, as well as provide lower fees and faster transaction times than Bitcoin.
Ethereum (ETH) is a cryptocurrency that went live in 2015. While its roots are in the cryptocurrency industry, Ethereum’s main focus is on smart contracts.
Smart contracts allow for the creation of decentralized applications (dApps) that don’t rely on third parties for verification. These dApps can be anything from social networks to games and are stored entirely on the blockchain. This means they won’t disappear if the company running them goes out of business, or a government decides to shut them down.
Ethereum uses its own cryptocurrency called Ether (ETH) as a form of payment to verify transactions on its blockchain. Ether is also used by the developers to settle transaction fees and services on the Ethereum network.
Ether is the second-largest cryptocurrency by market capitalization after Bitcoin.
Jackson Palmer : Dogecoin was originally founded by Jackson Palmer as both a joke and a response to other altcoins that were gaining popularity at that time. Palmer had been observing the growth of cryptocurrency through his Twitter account, and he felt that many of the new coins were nothing more than scams or “get-rich-quick schemes” without any real purpose beyond making money for their founders. To help poke fun at these projects, he decided to develop his own joke coin based on one of his favorite meme characters.
Dogecoin still has a lot of potential, but whether or not it will do well in the future depends on how much effort its community puts into it.
Launched in 2011, Litecoin was one of the earliest altcoins and has seen a surge in value in recent years, as well as adoption by many online retailers.
Litecoin is designed to be quicker than Bitcoin, with faster block generation times and a higher supply cap. The developers claim that Litecoin can handle a higher volume of transactions because its blockchain is capable of handling higher volumes than Bitcoin’s, thanks to its faster block generation speed.
Proof of Work : Lite coin uses a different proof-of-work algorithm called Scrypt. This is designed to make it more difficult for miners to create ASICs (specialized software) for the coin..
The Polkadot blockchain is a multi-chain network that allows blockchains and other technologies to securely connect and exchange information.
Block Chain : By operating its own blockchain, it enables users to build applications that can process high transaction volumes without sacrificing decentralization or security. The platform also supports interoperability with other blockchains, meaning it can talk to other networks and share information in a fast and secure way.
Polkadot has received support from the Web3 Foundation and Parity Technologies. Parity developed the Polkadot software alongside its Ethereum client, which allows people to connect to the Ethereum blockchain. Polkadot’s native cryptocurrency is known as DOT.
Binance Coin (BNB):
The Binance coin is a native token of the Binance exchange, launched in 2017. At the time of launch, 100 million BNB tokens were created and distributed to investors who participated in the ICO.
In the past, Binance used to charge fees for trading cryptocurrency on their exchange. However, with the introduction of BNB coins, users can now use this coin to pay for transaction fees on Binance and enjoy lower transaction fees as well as other benefits. BNB has also been adopted by other exchanges and platforms as a means of payment for their services. This includes Kucoin and BitexBook.
Binance coin is one of the most popular altcoins in the market at $369.48 per unit at press time and a market capitalization of over $61 billion as of 2022. The coin has also been integrated into many financial products such as earning platforms (Celsius), lending platforms (Blockfi) and debit cards (Bitpay).
Cardano is a third-generation cryptocurrency that was launched in September 2017. It was started by Charles Hoskinson, who was also one of the founders of Ethereum. The goal with Cardano is to create a platform for decentralized applications and smart contracts, similar to Ethereum. However, this platform is more scalable and energy-efficient than Ethereum.
Cardano is based on research principles, and the code is open-source, so it’s constantly being updated by scientists and developers from around the world. This means that Cardano will be able to handle more transactions per second than Ethereum. This is because Cardano uses a proof of stake algorithm called Ouroboros instead of a proof of work algorithm like Ethereum does.
Blockchain : Cardano has its own blockchain with its own native cryptocurrency called ADA. At the time of writing, there are more than 25 billion ADA tokens in circulation, with an overall supply of 45 billion ADA tokens.
Tether is a stable coin created to try and provide the benefits of cryptocurrency without the volatility. It is pegged to the US dollar and is designed to maintain a stable value of $1.00.
Tether was launched in July 2014 by Tether Limited. USDT is issued as a token on top of the Omni blockchain as well as Ethereum’s ERC20 standard.
Tether’s concept seems simple enough: each issued USDT coin is backed by one United States dollar, held in reserve. In practice, however, this has proven more difficult than it sounds.
Stable Currency : It’s not hard to see why Tether would be attractive – a cryptocurrency that can remain stable against fiat currency could make an ideal medium for exchanging between cryptocurrencies or for sending funds internationally. Trading using USDT avoids exchange volatility and allows traders to take advantage of price movements without worrying about extreme price fluctuations.
Monero (XMR) was created in 2014 with the purpose of offering more privacy than other public blockchain networks. That’s why Monero is considered a trustless and untraceable cryptocurrency.
Monero uses a proof-of-work (PoW) consensus algorithm to issue new coins and secure transactions. The algorithm is designed to work on any computer, which means Monero can be mined using any CPU or GPU. You can download Monero mining software for free from the website for any operating system.
Privacy : Although there are many cryptocurrencies that offer some privacy features, Monero differentiates itself by making all transactions completely anonymous by default. The only information included in a transaction on the Monero blockchain is the amount sent to protect users from being identified by their transaction history.
Transactions : No one can tell who made a transaction or where the money came from and went to — even if they have access to the blockchain ledger. It also makes it much harder for people to analyze the network and track down individual users.
Stellar (XLM) is an open-source payment system that allows you to send, receive and trade currencies over the blockchain. Developed by the Stellar Development Foundation, it is a not-for-profit organization with the goal of supporting financial inclusion across the globe.
Stellar was created in 2014 as a fork from Ripple. The big difference between the two is that Stellar uses its coin (XLM), whereas Ripple uses XRP. XLM’s value is derived from supply and demand, unlike XRP, which has no limit to the number of coins available for issuance and is owned by a private company.
Market Cap : Stellar currently has a market cap of $4 billion and a circulating supply of 18 billion XLM coins. It ranks in the top ten cryptocurrencies by volume and is listed on most major exchanges, including Coinbase.
The Stellar network acts as a ledger for recording financial transactions and is capable of exchanging any asset type, including fiat currencies, cryptocurrencies, and commodities.
Bitcoin Cash (BCH)
Bitcoin Cash is a derivative of Bitcoin that was created to solve some of the perceived flaws in Bitcoin. These flaws included slow transaction speed and high fees.
The difference between BCH and BTC is that BCH has a larger block size, which means that more transactions can be processed per second, and therefore it’s a faster network. In addition, because the block size is larger, it’s going to have lower transaction fees.
Bitcoin Cash came into existence as a result of a hard fork from Bitcoin in August 2017. Those who owned Bitcoin before the hard fork received an equal amount of Bitcoin Cash after the split.
BCH ticker : Bitcoin Cash trades under the BCH ticker symbol and is regarded by its enthusiasts as the genuine continuation of the Bitcoin project as peer-to-peer digital cash. Supporters of BCH believe that it provides an efficient and decentralized means of conducting transactions on the web.
What is the Future of Altcoins?
The future of altcoins is bright, and that’s good news for kiwi investors.
There’s a lot of excitement in the cryptocurrency space right now, thanks to the rise of bitcoin and the other coins that have since sprung up around it.
The value of these altcoins is highly volatile, but they could be great assets for you to consider if you’re looking to make money off your investments.
Many altcoins were created with a specific purpose in mind, so their value may very well be tied to that purpose. Alts that have utility or practical applications may be more valuable as long as they keep their user base active and engaged with the projects behind them.