Altcoins

The differences between Bitcoin, altcoins and meme coins explained

Published

8 months ago

30 May, 2024

But before considering invest in cryptocurrencyIt is important to understand the difference between meme coins, altcoins and bitcoin.

Bitcoin is the original cryptocurrency and the largest in terms of market capitalization with more than $1.3 trillion, according to CoinMarketCap. It was created by Satoshi Nakamoto, a person or group of people whose identity remains a mystery. Nakamoto envisioned bitcoin as an alternative version of virtual money that would not rely on a government or financial institution, such as a bank, to operate and facilitate payments.

Like many cryptocurrencies, bitcoin is powered by blockchain technologywhich functions as a decentralized digital ledger that tracks transactions made within the network.

Bitcoin also has a limited supply of 21 million pieces. This means that no new bitcoins will be issued once 21 million coins have been mined. Scarcity is voluntary; The supply limit ensures that bitcoin remains a scarce asset, so that, theoretically, as demand increases and supply stays the same, the value of bitcoin also increases.

Altcoins, also known as alternative coins, refer to any cryptocurrency other than bitcoin. Although some of these digital tokens may function similarly to bitcoin, they are built on different blockchain networks.

There are thousands of altcoins, which are usually created for a specific purpose. Take stable coins, For example. A stablecoin is a type of altcoin that pegs its value to another asset, such as gold or the US dollar, in an attempt to stabilize its price.

Outside of stablecoins, many altcoins derive their value from market demand and trader preferences. However, this can make them particularly vulnerable to rapid and unexpected price changes, says James Royal, principal investment and wealth management analyst at Bankrate.

“If demand dries up, you’ll be left with worthless digital assets and a good story,” he told CNBC Make It.

Additionally, with so many altcoins available, it is important to be on the lookout for potential scams. One of the most common types of crypto investment scams encourages you to purchase a large amount of a given coin and then transfer it to the scammer’s wallet.

“Before investing in crypto, search online for the name of the company or person and the name of the cryptocurrency, as well as words like ‘review,’ ‘scam,’ or ‘complaint,'” the company said. Federal Trade Commission. says on its website.

Under the umbrella of altcoins are meme coins. These virtual tokens are usually created for fun and are named after Internet memes or pop culture references. And while every meme coin is an altcoin, every altcoin is not necessarily a meme coin.

While all cryptocurrencies carry risks, meme coins can be particularly dangerous for traders, says Royal.

“Meme coins are among the riskiest cryptocurrencies because they seem to emerge out of nowhere and information about them can be scarce,” he says. “They are expected to soar and crash as public opinion shifts one way or another. Meme coins can capture public attention today and disappear tomorrow.”

Aside from stablecoins, most cryptocurrencies are not backed by an underlying asset such as gold, other commodities, or fiat currencies. Many crypto coins are only worth what the next trader is willing to pay for them, which is why they are considered very volatile and subject to unpredictable price fluctuations.

“While well-established cryptocurrencies such as Bitcoin and Ethereum may now have trader sentiment in their favor, they are still ultimately driven solely by sentiment,” Royal said. “If traders decide these coins are no longer worth their time, there is no fundamental activity to support the price of the coins, as there is for stocks.”

Ultimately, Royal says to “avoid cryptocurrencies altogether.” But if you want to “try your luck” in the crypto market, try a Bitcoin exchange traded fundhe says.

An ETF is a type of investment fund that aims to imitate and track the price movement of an asset or basket of assets. You would purchase a Bitcoin ETF through your brokerage account instead of purchasing and storing Bitcoin yourself on a crypto exchange or on Bitcoin’s blockchain network.

“The annual fees are reasonable, cheaper in most cases than buying the crypto yourself, and you are buying a coin that has interest from institutional investors, so demand may remain robust,” Royal said . “You’ll also avoid the security, fraud, and theft issues that have plagued cryptocurrency exchanges in recent years, while paying lower fees.”

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Altcoins

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Published

6 months ago

29 July, 2024

CoinFlix Staff

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Popular crypto analyst Michael van de Poppe has highlighted his altcoin portfolio approach in light of the new Ethereum ETF. In a recent Youtube videoThe analyst explained the measures he would take for this major market event.

The Ethereum ETF was listed on the stock exchange and it took time to get approval and so far there has been no significant change in price. The analyst pointed out that the long-term effect could be quite significant, comparing it to the situation of the Bitcoin ETF where the initial decline was followed by large inflows.

According to Van de Poppe, the Ethereum ETF’s trading volume on the first day of trading was about 25% of the volume Bitcoin ETF He noted that the first day of trading was marked by low inflation, and said there was a net inflow of $150 million to $160 million, which reduced the available supply.

Altcoins are poised for growth

The analyst said that as Ethereum adoption increases in the future, the supply of Ethereum will decrease, which is a deflationary model. Ethereum is up about 15% since the ETF approval, the broader market reaction has yet to happen as several sell-offs have taken place, including the Grayscale Trust.

Van de Poppe also mentioned other important market events, including the end of Mount Gox The process of repaying creditors initially caused tensions in the markets, but had little effect subsequently. It also highlighted the role of macroeconomic factors, which can lead to Fed rate cuts, which can affect markets.

In this regard, looking at van de Poppe’s strategy, he is still keen to trade within the altcoins of the Ethereum ecosystem. He stated that there is a possibility of short-term price fluctuations that may discourage many people, but the long-term still looks good due to the improvement and adaptation that has been made to Ethereum and its environment.

According to the analyst, substantial inflows could propel Ethereum towards new historic highs with estimates ranging from $5,000 to $7,000. Despite the current market fluctuations, he is confident that macroeconomic changes and greater liquidity will be favorable for altcoins.

He explained that his broad approach to altcoins, especially those associated with Ethereum, will be beneficial because the market will react differently to these events. The basis for his optimism comes from the fact that he believes that Ethereum and all associated projects are still extremely undervalued and have the potential to skyrocket as sentiment changes.

Looking ahead and market adjustments regarding the Ethereum ETF and other macroeconomic factors, the analyst remains bullish on altcoins. He suggested investors stay informed and believe that in the ever-changing world of crypto, they will eventually be rewarded.

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Altcoins

Altcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

IntoTheBlock Releases Report on Institutional DeFi Trilemma

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Altcoins

Altcoins Correct Amid ETH Decline, Grayscale Outflows | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

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Altcoins

Epic Altcoin Rally Expected for August and September

Published

6 months ago

28 July, 2024

CoinFlix Staff

Crypto analyst predicts massive altcoin rally similar to Q1 2024, urging patience and accumulation.
Bitcoin’s potential as a reserve asset and its technical patterns suggest that it will drive the rise of the cryptocurrency market.

Captain Faibik, a renowned crypto analyst, has created excitement in the cryptocurrency sector with his latest prediction. He indicated that we are on the cusp of a massive altcoin rally, similar to the one we saw in Q1 2024.

We are on the verge of a massive Altcoin rally, similar to Q1 2024📈

Keep accumulating and hold with patience. (Patience will be rewarded)

The majority of #Altcoins have already hit rock bottom and are about to escape.

In my opinion, August-September is going to be epic for Altcoins.🚀🚀#Crypto pic.twitter.com/cMdHagiaYc

— Captain Faibik (@CryptoFaibik) July 24, 2024

Accumulating and Holding Altcoins: The Path to Potential Profits

He stressed the need to accumulate altcoins and hold them patiently, as it will eventually pay off. According to him, the majority of altcoins have already bottomed out and are about to break it. He believes August and September will be epic months for altcoins.

In a chart posted by Captain Faibik, the overall crypto market cap, excluding Bitcoin and Ether, known as TOTAL3, is approaching the upper boundary of a descending channel pattern.

This context suggests a potential breakout and a significant rally towards the $1 trillion mark. Technically, the decline since mid-March is interpreted as a corrective trend for the value of TOTAL3, signaling a preparation to enter a rally structure.

Bitcoin’s influence and legislative developments suggest good prospects for the future

Furthermore, based on sentiment and technical patterns, Bitcoin, the world’s leading cryptocurrency, appears poised to lead the charge in the cryptocurrency market. Bitcoin’s performance often sets the tone for the market as a whole, and a strong move in BTC could trigger a significant rally in altcoins.

Previously, as we have already said reportedSenator Cynthia Lummis said she plans to introduce a bill at the upcoming Bitcoin conference that would require the Federal Reserve to hold Bitcoin as a reserve asset.

If this law passes, the US will treat BTC as a long-term investment rather than selling huge amounts infrequently, which could disrupt the market.

In addition, asset management firm VanEck has proposed a bold scenario in which Bitcoin Price Could Reach $2.9 Million Per BTC By 2050based on its fundamental outlook. Matthew Sigel, head of digital assets at VanEck, and senior investment analyst Patrick Bush noted that their estimate is based on Bitcoin’s adoption as a global medium of exchange and reserve asset.

As Bitcoin price increases, altcoins are expected to gain popularity, indicating the start of a bullish rally shortly after the BTC halving event.

Meanwhile, at the time of writing, the price of BTC was hovering around $67,007.99up 4.67% over the past 24 hours following a short-term correction.