Table of Contents
What gives an Altcoin value?
The value of anything is determined by supply and demand. If demand increases faster than supply, the price goes up. For example, if there’s a drought, the price of grain and produce increases if demand doesn’t change. The same supply and demand principle applies to cryptocurrencies.
How do you evaluate Altcoins?
In addition to researching the price history, you can check the altcoin’s market health through its trade volume. Simply put, when more people trade higher amounts of an altcoin in the market, that altcoin is in good shape. It’s even better if people find actual use in that altcoin.
What is Altcoin worth?
ALT Price Statistics
| AltCoin Price | $0.0000007928 |
|---|---|
| Trading Volume24h | $23,791.59 53.49\% |
| Volume / Market Cap | 0.03001 |
| Market Dominance | 0.00\% |
| Market Rank | #5314 |
What are altcoins and should you invest in them?
Altcoins have a smaller investment market as compared to Bitcoin. As of April 2021, Bitcoin has a 60\% share of the overall cryptocurrency market. The absence of regulation and defined criteria for investment means that the altcoin market is characterized by fewer investors and thin liquidity.
Do altcoins go up or down when Bitcoin goes down?
You might expect that, given Bitcoin’s technical problems, altcoins might go up in value when Bitcoin goes down. But, over and over, we’ve seen that the opposite is true. When Bitcoin goes down, altcoins tend to go down, too. All we’re saying is: Don’t treat altcoins like an alternative to Bitcoin that will help you diversify your portfolio.
Why are altcoin valuations so volatile?
Thin markets and an absence of regulation produces quicksilver volatility in altcoin valuations. Consider the case of Ethereum’s ether, which reached a peak of $1299.95 on Jan 12, 2018. Less than a month later, it was down to $597.36 and by the year’s end, ether’s price had crashed to $89.52.
Will altcoins’ price movements be independent of bitcoin trading signals?
However, analysts say the maturity of cryptocurrency investing ecosystems and the development of new markets for these coins will make price movements for altcoins independent of Bitcoin’s trading signals. The term “altcoins” refers to all cryptocurrencies other than Bitcoin.