Ronald Ryan
by on May 14, 2022
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Any coin other than Bitcoin falls under the term ‘Altcoin.’ There are almost 17,000 types of cryptocurrencies - as of April 2022. While Bitcoin & Ethereum make up 60% of the market, Altcoins take up the remaining 40%, according to the crypto market-tracking website CoinMarketCap. 

Should You Invest in Altcoin Development?

Because of its smart contract capabilities and the appeal of digitally scarce art known as non-fungible tokens, Ethereum, the most widely recognized altcoin, has risen dramatically since its 2015 inception (NFTs). 

I think it’s time to perceive crypto as a get-rich-quick scheme. Instead, see the Altcoin development as a new opportunity to leverage blockchain-based assets without putting much on the line. 

 

Some Types of Altcoins

While there are so many Altcoins out there, the majority of them broadly fall under these four categories:

  • Stablecoins are virtual currencies either pegged to a less-volatile asset or a fiat currency (like the U.S. dollar), or even some other cryptocurrencies.
  • Memecoins often follow the trend and draw attraction from social influencers, drawing value from the online community.
  • Utility Tokens embed the community-specific governance functionalities or special accesses. Take Ether (for instance), which serves as the payment processor to mint currencies.
  • Security Tokens represent the fractions of a real asset with value (for instance, the real estate shares). Blockchain technology bestows immutable ownership records!

While your decision is ultimate, try to follow the trend - look up the market and identify which altcoin is drawing more traction; doing so would help you plan your Altcoin development accordingly!

Conclusion

It’s hard to foresee which altcoin type will have lasting value. A recent example of Terra (LUNA) - what was one of the best-performing Altcoins - crashed recently with a significant value drop. 

Consider Altcoin development if you’re serious about a long-term venture in the crypto sector - while not if you’re a passive investor.

If you’re serious about it, hire an altcoin development company now to assist you on the technical side.

Posted in: Business, Technology
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