New Crypto Coins: Good News for Bitcoin?

Bitcoin paved the way for other cryptocurrencies. There are thousands of coins and many more new crypto coins yet to launch. Where does this leave the almighty Bitcoin?

What Are Altcoins?

Altcoins are cryptocurrencies that are not Bitcoin. In other words, they are alternative coins to Bitcoin. These coins share similar characteristics with Bitcoin but can improve their features. Ethereum is the second-largest cryptocurrency after Bitcoin, making it the largest altcoin based on market cap. Some other major altcoins are Binance, Solana, and USDC.

New crypto coins are emerging. Based on the level of advancement in the crypto world, they are likely to do even better. For example, there were older cryptocurrencies before Solana launched, yet it is currently one of the largest coins in the crypto space.

There are more than 14,000 altcoins; some are still rising in price while others have been struggling to stay relevant. Despite the number of altcoins available, in November 2021, according to (CMC) CoinMarkeyCap, Bitcoin and Ethereum had 60% of the cryptocurrencies available in the market, while altcoins accounted for the remaining 40%.

Currently, the price of Bitcoin influences most cryptocurrencies, a significant change in the price of Bitcoin leads to a significant change in the price of altcoins.

Type of Altcoins

There are different types of altcoins and different categories based on their functions. Each of these categories plays a different role in the crypto world. The categories include; Mining-based coins

Like Bitcoin, these coins are mined to create more and serve as a way of controlling the circulation of the coins. Some examples of mining-based coins are Litecoin and Zcash.

Stablecoins

Stable coins play a really important role for investors in the crypto market. They are called stable coins because they are influenced by fiat currencies, for example, US dollars. Stable coins include NUSD, NUSD, and USDT.

Meme coins

These are usually short-term gain coins. A joke on existing popular cryptocurrencies inspires meme coins. Examples of meme coins are Shiba Inu and Dogecoin.

Security tokens

Security tokens are a replica of the traditional stock.

Utility tokens

These are tokens used to provide services within a network. An example of a utility coin is Filecoin.

Are Altcoins Good Investments?

Profit and loss in cryptocurrency trading depend on the coin you invest in. So the first step in determining if a coin is a good investment is to DYOR. With that, you will be able to figure out if the coin is worth the risk. Not all altcoins are good investments, although many have proven profitable.

Generally, investing in cryptocurrency is risky as it is a volatile market. If you invest, ensure that you do proper research, especially on new crypto coins, and take wise risk decisions.

Are More Altcoins Needed in the Market?

The emergence of new crypto coins positively impacts the crypto market. Bitcoin is out of reach for most crypto investors based on its current price. There are lots of altcoins with good potential going for a way lesser price compared to Bitcoin.

Some new crypto coins are making waves in the crypto world and making their investors rich. Meme coins may be short-term gain coins and have a high level of volatility, but that doesn’t change the fact that it has made many millionaires overnight.

More altcoins mean more opportunities for cryptocurrency investors. It is up to you to ensure that you are making the right investments.

What Do Bitcoiners Think About Altcoins?

Altcoins are more advanced than Bitcoin and are considered good alternatives. Despite all the new features altcoins possess, Bitcoin still stands as the most popular and most prominent cryptocurrency in the crypto space. Bitcoiners may not be too open to new crypto coins, but the fact is that the entire crypto space is aware of the positive impact altcoins have on the crypto market.

Bitcoin remains the number one cryptocurrency in the whole crypto market. Bitcoiners are aware that these new crypto coins cannot replace Bitcoin.