What Are Altcoins and How Are They Different from Bitcoin?

altcoin hand blue

This year, the cryptocurrency industry will celebrate its first anniversary. Bitcoin, the world’s #1 cryptocurrency will be exactly 10 years old In October. During this time, a large number of different coins have appeared on the market, which tried to improve or replace BTC. In this article we’ll talk about such a concept as altcoins, find out why we need them, when they were invented and what kind of future awaits for them.

Contents:
(please, click the topic to scroll down to it)

  1. What are altcoins?
  2. Why create altcoins?
  3. Promising altcoins of 2018
  4. Conclusion

1. What are altcoins?

This concept is rather familiar to most of the experienced market participants. In fact, an altcoin is any cryptocurrency other than Bitcoin. It will make sense if you refer to the etymology of the word (altcoin – an alternative coin). Altcoin is not a specific coin, but implies a whole separate species, which already has a couple of thousand coins.

2. Why create altcoins?

New altcoins are designed to replace, improve or supplement #1 cryptocurrency. It is worth noting that the vast majority of these projects have not been successful, but there are also quite successful cases. If you look at this in terms of the years passed, you can confidently state that the key to success is not to copy blindly BTC with minimal corrections, but to create truly original projects.

So, let’s analyze the main parameters of altcoins that differ them from Bitcoin:

– The speed of transactions. This is one of the weaknesses of the cryptocurrency flagship, since the network is designed to handle only seven transactions per second, so they can be delayed for two to three hours. Some developers have succeeded in creating altcoins with high network bandwidth and with the ability to scale the user base.

– Hashing algorithm. All cryptocurrencies are built on the technological base of blockchain. Coin systems need to hash transaction data and enclose them in blocks to work correctly. Bitcoin works on the SHA-256 algorithm, which takes about 10 minutes to generate one block. This is by no means the only algorithm, there are other, faster and more efficient ones, such as scrypt, X11, X13, X15, etc. They spend much less time creating a single block, which allows for greater transaction speed.

– Altcoin mining algorithm. The extraction of alternative coins often does not have any fundamental differences from Bitcoin mining. Since altcoins are less popular, they are mined by fewer participants, so the overall complexity of the network is smaller. Therefore, it is much more profitable to mine altcoins than to mine BTC. There are coins that are not available for mining, since the developers initially produced a full emission.

3. Promising altcoins of 2018

Each year there appear new interesting decentralized projects that collect impressive amounts at the ICO stages. Not only can they bring their depositors insanely big money, they can also change the development vector of the industry as a whole. For example, the same thing happened with Ethereum.

If we mark some specific promising altcoins at a given time, we should point out the following:

Ethereum;

Ripple;

Bitcoin Cash;

EOS;

Waves;

Monero;

Dash.

Almost all of them are in the TOP-10 of the global CoinMarketCap rating, but all these projects have not yet fully revealed the capabilities of their technologies, so they are still quite promising for investments.

4. Conclusion

Altcoin is not a definite coin, it is any cryptocurrency, except Bitcoin. Each of them was created as a counterweight, addition or replacement of BTC. Different projects solve various problems of the original blockchain. Many altcoins can have a great future, as some of them have every chance to outshine Bitcoin.

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Cryptocurrency Prices Today, February 15: Cryptocurrencies “Stand Still”

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) remained stable over the past 24 hours. The price at the time of writing is $3604 per coin.

For the most part, cryptocurrencies did not change in price throughout the day:

Bitcoin Cash lost 0.99% over the past 24 hours and costs $121 per coin;

Ripple dropped by 0.03 and costs $0.30;

EOS added 2.3%, and its price is $2.85;

Litecoin grew by 0.18%, and its value is $42;

Cardano gained 0.27%, and its cost is $0.040;

Stellar added 2.66% and costs $0.078;

IOTA grew by 0.87%, and its cost is $0.27;

Dash lost 0.6, and its price is $79;

Monero fell by 0.06% and costs $47.

Over the past 24 hours, Ethereum remained stable. The exchange rate of the coin is $122.

The total market capitalization is $120 billion. Bitcoin accounts for 52.7% of the total volume. In monetary terms, it is $63 billion.

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How To Read Trading Charts

Cryptocurrency exchanges work on the same principle as traditional exchanges. Potentially, it is possible to earn very good money on these platforms, but for this, it is needed to be able to correctly read the cryptocurrency coin chart. Of course, in order to become a professional trader, it needs to learn and practice a lot, but if your goal is to understand the basics, this article will be an excellent starting point in the exciting world of trading for you.

There are a huge variety of different charts, but the most common is the “Candlestick chart”. The chart is a much more informative tool than digital or text analysis. Using graphics, it is possible to quickly navigate and understand the current mood of the crowd, as well as the balance of power between sellers and buyers of a particular asset. Based on the obtained data, it is possible to calculate the potential profitability or unprofitability of a particular deal.

1. The main types of stock charts

As it was mentioned above, there are a huge number of different types of charts, but the main ones are lines, bars, and candlesticks. All of these tools (with the exception of the line charts) can tell about:

  • price at the beginning of the selected period (1 minute, 5 minutes, 15 minutes, 1 hour, 1 day, 1 week, etc.);
  • price at the end of the selected period;
  • the minimum and maximum rate of the selected period.

By and large, the crypto chart clearly shows the history of the struggle between bulls and bears. In the process of this confrontation, a large number of deals are made. It should be understood that even a slight fluctuation of the price means that some have already earned on it, while others, on the contrary, have suffered losses.

2. “Candlestick chart”

Let’s take a closer look at the most common version of charts, namely “Candlestick chart”. It was invented almost 400 years ago by a rice seller from the country of the Rising Sun. The process of observing a line chart is not entirely convenient; for this reason, the construction of “Candlestick chart” is based on the principle of dividing the total time into specific periods. This principle helps to quickly navigate what is happening on the market and, accordingly, to give the Bitcoin trend prediction or any other financial asset forecast.

3. How to read the chart “Candlestick chart”?

One candle represents the range of prices for an asset for a certain period of time. The boundaries of the candle are the lowest and highest asset price in this period of time. If the candle`s color is green, this means that the asset has increased in value over a given period of time; if it is red, then, on the contrary, it has fallen.

Source: https://www.tradingview.com/

If you look closely at the above chart, you will notice:

  • the candle corresponds to the time interval – 60 minutes;
  • the minimum asset price was $3485,24;
  • the maximum asset price was $3733.58;
  • This hour began with a price of $3506,42 and ended with the price of $3687 (for this reason, the candle is green).

The main parameters that should be paid attention to when reading cryptocurrency charts are:

  • asset price;
  • time;
  • trading volume.

By and large, the entire analysis of charts is an ordinary calculation of the balance between supply and demand. It is possible to estimate the level of the strength of bulls or bears through the asset price (vertical axis) and the volume of transactions (horizontal axis). These skills allow experienced traders to take the right position in advance and earn money on any price movement.

4. Conclusion

In this article, we talked about how to read cryptocurrency charts. As it was mentioned above, there are a huge number of different types of charts, but the most popular and often used is the option “Candlestick chart”. The basic principle of this type of charts is to divide the time into certain periods. It is quite informative and easy to read. If you want to start trading, then you definitely need to get a deeper understanding of this topic.

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Cryptocurrency Prices Today, February 12: Is Cryptocurrency Once Again Moving into the Red Zone?

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) lost 0.3% over the past 24 hours. The price at the time of writing is $3602 per coin.

Part of cryptocurrencies began to decline slightly:

Bitcoin Cash lost 3.49% over the past 24 hours and costs $120 per coin;

Ripple dropped by 1.4% and costs $0.29;

EOS added 1.59%, and its price $2.80;

Litecoin lost 3.97%, and its value is $43;

Cardano decreased by 3.57%, and its cost is $0.040;

Stellar fell by 5.69% and costs $0.074;

IOTA lost 2.6%, and its value is $0.26;

Dash gained 6.13%, and its price is $83;

Monero grew by 1.63% and costs $48.

Over the past 24 hours, Ethereum lost 0.76%. The rate of the coin is $120.

The total market capitalization is $120 billion. Bitcoin accounts for 52.9% of the total volume. In monetary terms, it is $63 billion.

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Cryptocurrency Prices Today, February 11: Cryptocurrencies Are Steadily Growing

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the Coingecko online platform, Bitcoin (BTC) lost 0.3% over the past 24 hours after a period of growth. The price at the time of writing is $3634 per coin.

Cryptocurrencies are mainly in the green zone:

Bitcoin Cash added 1.67% over the past 24 hours and costs $122 per coin;

Ripple lost 0.13% and costs $0.30;

EOS grew by 3.55%, and its price is $2.79;

Litecoin rose by 1.82%, and its value is $44;

Cardano increased by 2.22%, and its cost is $0.041;

Stellar gained 1.81% and costs $0.079;

IOTA lost 1.2%, and its cost is $0.27;

Dash grew by 8.96%, and its price $79;

Monero dropped by 0.43% and costs $47.

Over the past 24 hours, Ethereum added 2.9%. The rate of the coin is $120.

The total market capitalization is $121 billion. Bitcoin accounts for 52.8% of the total volume. In monetary terms, this is $64 billion.

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Bitcoin Price Analysis: The Representatives of JP Morgan and Fundstrat Share Their Opinions About Bitcoin’s Future

Another week has passed, yet Bitcoin still shows quite plain dynamics on the graphics. In fact, its price has not changed significantly since January 10th. Bitcoin price is $3459 at the time of writing.

Source: CoinMarketCap

Since Bitcoin’s price has recently stabilized, many institutional players began changing their attitudes towards cryptocurrency, let us see what the representatives of global companies think.

JPMorgan

The Global Market Strategist at JPMorgan, Nikolaos Panigirtzoglou, reckons that due to Bitcoin’s stagnation many big players will return to the industry. The volatility has “calmed down” and it means that investors can give Bitcoin second chance. He also said:

“The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future. The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”

In his interview to CNBC, he stated that the cryptocurrency could not grow, because it was not regulated, but now the situation can differ.

Fundstrat

Wall Street research firm, Fundstrat Global Advisors, is sure that the cryptocurrency may see  new lows soon.

“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows,” Robert Sluymer, the spokesman of Fundstrat, said.

In addition, Sluymer stated that the price can vary from $4200 to $3100 or ever lower. If it suddenly hits more than $4000, it would mark a 25% increase over today’s prevailing prices. However, Robert emphasized that the technical fundamentals of Bitcoin remain weak, so the price can have downward tendency to the price mark of $3100 or even lower – $2700. The representatives of Fundstrat have also suggested that 250 small-cap coins are at risk, as they all are vulnerable to market jumps.

There are some reasons why Bitcoin price may fall down:

  1. Lunar New Year. During this period, Asian traders have relatively weak activity which may bring consequences to Bitcoin’s rate. The unofficial holidays will last till February 19.
  2. Uncertainty with the US budget. The Congress and the President of the US cannot reach an agreement, this will have influence on financial markets.
  3. Trade war between US and China.

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Cryptocurrency Prices Today, February 8: Cryptocurrencies Are Showing Growth

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Cardano, Stellar, IOTA, Dash, Monero: Cryptocurrency prices

According to the online platform Coingecko, Bitcoin (BTC) added 0.2% over the past 24 hours. The price at the time of writing is $3427 per coin.

Cryptocurrencies moved to the green zone:

Bitcoin Cash added 0.08% over the past 24 hours and costs $117 per coin;

Ripple grew by 1.49% and costs $0.29;

EOS increased by 3.59%, and its price is $2.45;

Litecoin grew by 10.3%, and its value is $36;

Cardano gained 1.35% and its cost $0.037;

Stellar dropped by 0.47% and costs $0.076;

IOTA added 1.33%, and its cost is $0.25;

Dash increased by 2.68%, and its price $69;

Monero became more expensive by 4.69% and costs $45.

Over the past 24 hours, Ethereum added 1.6%. The rate of the coin is $108.

The total market capitalization is $113 billion. Bitcoin accounts for 53.1% of the total volume. In monetary terms, it is $59 billion.

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