Longtime investor and entrepreneur Ryan Hoggan is one of the most popular names in the altcoin market. He has been focusing on altcoins in the last few years, especially as many of them follow the popularity of Bitcoin and Binance Smart Chain.
We talked with Hoggan recently about altcoins and what makes them so exciting. He shared a few points that investors need to understand when looking at what makes altcoins valuable and useful for investment needs.
Bitcoin is already a highly popular cryptocurrency. So why are there so many altcoins out there? What makes them special?
Altcoins are designed to improve the Bitcoin network. Some altcoins are faster to process and mine, while others don’t cost as much to mine. Some altcoins like Tether and Libra link to an underlying security.
You’ve also got some coins that focus on specific activities, like how Namecoin helps record and transfer domain names between parties. These coins are extremely diverse and varied in how they work.
Can people spend altcoins on different things as they can with Bitcoin?
People can use their altcoins to pay for many things, whether for certain online services or in-app orders. I’ve noticed some of these coins are very popular on the NFT arts market, especially with some NFT art costing more than others.
The investment potential for these coins is massive. You never know what to expect from these features.
What should people know about altcoins if they’re going to invest in them?
Before investing in altcoins, investors should look for as many details. Look at who’s issuing the coin, where the money is going, and whatever rights you are entitled to with your investment.
A developer should provide a white paper that explains everything surrounding the coin and what you can expect.
Can altcoins be as volatile as Bitcoin?
Many altcoins can be volatile, although some are more volatile than others. Litecoin and Bitcoin Cash are both volatile because they are traded more often.
But not all coins are going to be traded very often. I recommend checking the statistics of whatever coin interests you the most when seeing what is open.
All investors must notice what is available when finding something based on whether something might change.
How can you tell when an altcoin is ready to break out and become more valuable?
An altcoin will break out if it experiences a substantial upgrade. An altcoin might receive an upgrade through either faster mining times or increased functionality for whatever it offers. A competitor to a coin might also be facing additional scrutiny, leading people to look for an alternative.
I recommend people do their research and keep up on how these coins are developing and what they can find on the market. Don’t forget to look for the white papers for these coins, as they can tell anyone more about something open.
The odds are you’ll find something helpful in one of these papers.