In early 2021, the price for altcoins was spectacular but the bulls are not evergreen. Altcoins are accounted for more than 40% of the total cryptocurrency market, with over 10,000 cryptocurrencies and counting. The explosion of decentralized finance and smart contracts give rise to some of the altcoins’ value. The highest altcoins by market cap remain to be Ether, Tether, Binance Coin, and even Dogecoin. The total market capitalization of altcoins, excluding Bitcoin, is at a all-time high, according to CoinMarketCap.

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Investing or trading cryptocurrency can be lucrative. In early 2021, the price for altcoins was indeed spectacular but the bulls are not evergreen. Still, we could not ignore the fact that more institutions and retail traders are jumping into the crypto bandwagon. In fact, the explosion of decentralized finance (DeFi) and the use of smart contracts give rise to some of the altcoins’ value.

According to some crypto analysts, the best altcoins include LINK, ADA, DOT, UNI, and MATIC. But, there are also other alternative coins worth looking into.

In this guide, we highlight some of the prospects of these altcoins and help you better evaluate an altcoin before investing in it.

What Is An Altcoin?

Altcoins or “alternative coins” refers to cryptocurrencies other than Bitcoin. In other words, any cryptocurrency that are alternative to Bitcoin are classified as Altcoins. That includes Ethereum’s Ether and Ripple’s XRP. Altcoin deviates from the monopolization of Bitcoin and offers a cheaper alternative for digital transactions.

Bitcoin remains one of the largest digital assets with over 48% of the total market capitalization but altcoins are growing as corresponding to the rising demand of DeFi, including NFTs and DApps development. Among those, Ether (ETH) has around 17% of the global cryptocurrency market cap in June 2021.

Today, altcoins are accounted for more than 40% of the total cryptocurrency market, with over 10,000 cryptocurrencies and counting. Some of these include utility coins, stablecoins, security coins, and meme coins. Still, the highest altcoins by market cap remain to be Ether, Tether, Binance Coin, and even Dogecoin One of the main drivers of value behind these altcoins is the project, platform, or blockchain it is connected that gives validity and utility to the real world.

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Source: hackernoon.com