Altcoins are defined as being "alternative coins," which applies to all cryptocurrencies that are not Bitcoin. A popular strategy of generating a profit online is through 'altcoin trading.' This type of trade is not overly difficult and allows participants to make money even when prices are decreasing. The secret to being a success in altcoin trading is accurately predicting if the prices will rise or drop. Afterward, come the opening and closing of the current trading positions accordingly.
Selecting an exchange
Altcoins are paired with either Bitcoin or Ethereum in most exchanges. In order to obtain altcoins, they will need to be traded. Oftentimes, a trader will need to register and transfer cryptocurrency between a handful of exchanges so that they can get what they want. While it sounds taxing, it is actually a fairly easy process, and the returns typically offset the hassle.
First and foremost, one must register at a gateway service. Gateway platforms (aka. fiat-to-crypto platforms) are where users purchase cryptocurrencies with fiat. You will want to use a safe exchange such as https://cryptoexchange.com/.
It would be wise for traders to pick a service that suits their needs and is not blocked in their jurisdiction. Moreover, they must pay close attention to the fees for deposits and transfers. There are some gateway exchanges or brokers that provide quick credit/debit card transfers, though the cost is usually higher than a regular transfer. Also, one must check what cryptocurrency markets they have. Plenty of services work on listing more cryptocurrencies, so traders could potentially find a wanted altcoin on an accessible fiat-to-crypto platform. Should this happen, then it would be smart to purchase it there.
After choosing the most suitable exchange, the next step is to register an account and purchase bitcoins, ether, or altcoins (if they are listed there). Bitcoin and Ethereum are both popular cryptocurrencies that are widely accepted. On top of that, they have the most trading pairs, hence the convenience of swapping them for altcoins.
If a trader can acquire the altcoins they want using a fiat-to-crypto exchange, then their task is finished. However, these types of exchanges possess a very limited selection of altcoins. This is the main reason why there are so many alleged altcoin (aka. crypto-to-crypto) exchanges.
Crypto-to-crypto exchanges are cryptocurrency markets without fiat pairs and deposit options. Generally speaking, these exchanges endure by simply listing projects that are less popular, fresh, and/or promising. Moreover, they list projects that come at a low price, but can still fill the pockets of investors in the long run. Crypto-to-crypto exchanges are predominantly unregulated, so acting with caution is advised, and one should not take risks that they cannot afford to lose.
After selecting the right altcoin exchange, traders can finally make a deposit. If an investor wants to withdraw their altcoin from the exchange without converting it to currency, there is a way to do so with crypto wallets. To do this, the trader must withdraw their crypto-assets (presumably BTC or ETH) from the gateway exchange (fiat-to-crypto) wallet to the altcoin exchange (crypto-to-crypto) wallet. This is a straightforward process that is universal for all exchanges.
In the altcoin exchange, traders first need to find the deposit address and copy it. The wallet address must be for the asset that is about to be deposited. For instance, one must never send ether to a bitcoin address. In the event of a Bitcoin transfer, it is imperative that the trader sends it to a Bitcoin wallet address. While simple, this step is critical, and failure to do it right may lead to the loss of funds.
The next step is to go to the gateway exchange and find the withdrawal section. Enter the altcoin exchange's wallet address and click on the withdraw button. There are some exchanges where traders will need to provide confirmation that the withdrawal is using your email. The coins will arrive in a matter of minutes, an hour at the most, based on the network's speed and congestion.
Buying your altcoins
At this point, the trader reaches a point where they will want to retrieve their altcoins. As soon as the deposit reaches their crypto-to-crypto exchange wallet, they can go to the market and trade BTC or ETH for altcoins.
Purchasing low-key altcoins is not without its risks. In fact, it is just as risky to purchase them as it would be to obtain widely recognized projects. Lesser-known coins created by anonymous team members that promise perks that are too good to be true are ones to watch out for.