The cryptocurrency world has been booming within the past decade with many investing in and trading digital currency.
Bitcoin is by far the most well known coin on the market, but what about all of the other coins out there?
We refer to these other coins as altcoins and they make up around 40% of the cryptocurrency market. Altcoins in the cryptoworld could be compared to penny stocks in the way that they’re extremely cheap but volatile investments.
Some popular altcoins include Ethereum, Litecoin, Cardano, and even Dogecoin, however, there are close to 5,000 other altcoins on the market.
What makes an altcoin grow in popularity and value? It’s pretty simple, if people believe in it, they will invest in it, and the more people who invest in a coin, the higher the value of the coin becomes. For example, Dogecoin started out as a funny joke coin, but soon soared in popularity with tons of people investing in it.
Altcoins are extremely volatile. The prices for altcoins are typically fairly cheap with a high risk high reward trend. There’s a high chance you could lose out on a digital coin, so you want to make sure you know your risks beforehand. This is why it is extremely important to do your research on a digital coin before investing in it.
It’s a good idea to only invest in altcoins that you strongly believe will be successful in the long run and try to avoid jumping on current trending coins.
If you’re going to invest in altcoins, you’re ultimately gambling and betting on very unstable digital currencies. Before you invest in altcoins, ensure you’re okay with losing everything you invest.
Another thing you need to keep in mind if you’re investing in altcoins are the many fake coins and the malicious scams associated with digital currency.
Cybercriminals are taking advantage of the cryptocurrency trends and creating fake social media platforms, websites, and coins to entice individuals into investing in their malicious attacks.
One malicious method that has proven successful is the use of deepfake videos. Cybercriminals will use deepfakes to promote their fake coins or to spread misinformation. They will typically use the face of a prominent or famous individual to catch the attention of more investors. This is a form of social engineering and it is used to gain consumer trust to steer investors into a specific direction.
Some deepfake videos are meticulously edited which makes it extremely hard for your everyday person to detect if it is legit or not.
Because the world of cryptocurrency has few regulations in place and the majority of trading is anonymous, it is extremely difficult to track down perpetrators of these crypto-scams.
It’s impossible to predict the future, but with more and more investors joining the crypto world, there’s a possibility digital currency will be even more widely used in the years to come.
There are still many unknowns, but if you’re thinking of investing in altcoins in the meantime, know your risks when you in invest, and ensure to do adequate research beforehand.