Top Altcoins for Long Term Investment – How Do You Shortlist Them?
An altcoin is a cryptocurrency that’s not Bitcoin. As you may know, Bitcoin was the first cryptocurrency to hit the market back in 2009 and it has since become one of the most valuable digital currencies in existence today.
Altcoins are considered alternatives to Bitcoin and they are often thought of as “Bitcoin 2.0” or “second-generation cryptocurrencies” because they are built on different code bases than Bitcoin (usually Ethereum).
Because there are hundreds of altcoins out there, choosing which ones to invest in might seem like a daunting task for beginners who want to get started with crypto investing but don’t know where to start!
What Are The Best Altcoins for Long-Term Investment?
The best long-term cryptocurrencies are the ones that have a strong team, a solid community, and a proven use case.
Some coins have all of these things, while others do not. Once you know what to look for in a cryptocurrency, it’s easier to determine which ones are likely to succeed in the long term.
There are several different categories of altcoins: privacy coins, platforms, payment methods, and utility tokens. Let’s take a closer look at each type and what makes them appealing as investments.
Privacy coins offer enhanced anonymity while protecting user information from prying eyes (such as governments).
Monero is one of the most popular privacy coins because it uses ring signatures to hide users’ identities on their blockchain ledger records by obscuring the sender of money or transaction amount from anyone other than the individual who owns it.
Bitcoin isn’t private by default (the network tracks users’ transactions). There are some ways to make it more anonymous using features like the Tor browser or coin mixers like Wasabi Wallet.
It mixes Bitcoin into anonymized pools so nobody can tell who sent what amount where when they’re spending those funds later on down the road.
You can consider the new cryptos too while considering this set. These can include the Polkadot. If you are wondering what is Polkadot, then you can google them to learn about Dot and how to buy Polkadot.
How to Shortlist Altcoins for Long-Term?
There are several factors you can use to shortlist the best altcoins for long-term investment.
The market cap is one of the most important factors. A large market cap indicates that there are enough investors who believe in the potential of this coin and want to get involved in it.
A high market cap also means that more people will be willing to buy when their price goes down, which means that your chances of making money increase significantly because you have lots of opportunities for buying low and selling high.
You should also look at whether there’s a large community behind a particular cryptocurrency. If there are lots of people talking about it on social media, then there’s probably something special about it!
Just remember, don’t invest based solely on what you see online, always do some research first before making any decisions!
Another thing I always do when looking into new coins is checked out their developer communities (or “devs”). If they’re active developers who constantly update their projects with improvements, then this could be another indicator that they’re worth investing in over time.
They Have a Large Market Cap
Another way to gauge the health of a cryptocurrency is to look at its market cap. This is the total value of all of the coins in circulation and it’s used as a way to compare differences between various cryptocurrencies.
The higher the market cap, the more confidence there is in that currency. For instance, Bitcoin has a large number of coins in circulation (21 million) and so has an extremely high market cap ($111 billion).
The more coins available for trade, also means that more people own them. So if you’re looking for altcoins with low supply but high demand then you may have trouble finding some good options since there aren’t many left!
They Have a Large Community
When you invest in a cryptocurrency, it’s important to know who the community is behind it. This will give you an idea of how much support there is for a certain coin, and if people will continue to use their technology or not.
If you look at the top 10 cryptocurrencies, many of them have very large communities supporting them. Ethereum and Bitcoin are two examples of this type of project that have been around for over 10 years now, with millions upon millions of dollars invested into their platforms.
Their Technology Is Novel
The novelty of technology is another important aspect to consider when choosing the right altcoin for long-term investment. It’s not just about whether a cryptocurrency has “new” technology, but rather whether the technology is novel and interesting enough.
This is because new technologies are more likely to be adopted by the community and improved upon, which leads to better liquidity, wider use case applications, and therefore higher value growth over time. Let’s take a look at some examples:
Ethereum (ETH) – Ethereum was one of the first cryptocurrencies built on top of an existing blockchain network (Bitcoin).
However, it introduced some significant upgrades such as smart contracts that allow developers within its ecosystem to create decentralized applications (DApps) without having to worry about hosting costs or scalability issues that come with using Ethereum as a currency itself.
As such it saw much wider adoption than other coins like Litecoin or Dash did previously, while they might still have value today due to their unique features being more niche than ETH’s versatility.
Offer them different ways to make money through mining activities or even trading cryptocurrencies on exchanges (in case you didn’t know how exactly these things work).
You want to invest in a coin that has a novel and useful technology. The world of cryptocurrencies is very dynamic and fast-moving.
To stay ahead of the curve, you need to choose coins with a wide-ranging application for their technology. You must take into account ease of use as well as whether or not the technology is easy to understand and implement.