CHAPTER 2 Altcoins: the key to your new fortune Ask anyone about Bitcoin these days, and chances are they’ll have heard of it. They might not have invested in it, they almost certainly won’t be using it, but they’ll have read about it. But that’s as far as their knowledge goes. For the most part, nearly all cryptos are a mystery to most people. Even though they’re making some people very very rich. And you DON’T need a fortune to get started. This is all about taking money you can afford to play with a little, and A) Buying into my first batch of recommendations in the free report I’ve sent you to hopefully make you a mindboggling profit and B) joining me on my Crypto Hotwire to see how you can move in and out of cryptos to make 2- 10 times your stake again and again. So let’s take a closer look at the vast market of coins we’ll be making our money from – altcoins; what they are and how they work. The best way to describe an altcoin life cycle is to compare it to penny stocks. Penny stocks are just a more established market place but they often follow the same pattern as altcoins. Some companies fail on startup… some companies get their shares pumped to a high price then sold/dumped for profit. If you know how to ‘read’ those companies, so you can spot the ones likely to die and the ones likely to soar, you can make serious money.
In fact, penny share investing regularly posts the biggest gains across the stock markets, because they have the scope to boom. If I showed you a share today, valued at £1.70, I doubt you’d think much of it. It’s not a high value by any stretch of the imagination. But if I told you that share had been trading at 17p just two months ago, you’d quickly see the potential. Altcoins are the same. The key difference is, the gains can be MUCH higher. The flip side is more risk. However, nothing is more fun than the altcoin world; who wants to get involved with those stock traders in suits? The altcoin cats are a much cooler crowd. Most Altcoins are Bitcoin clones, changing only very minor characteristics, such as transaction speeds, distribution method or the hashing algorithm. And most don't survive for very long. However, there are a handful that have been around for almost as long as Bitcoin itself. One of these coins is known as Litecoin which was one of the very first Altcoins. Litecoin used a different hashing algorithm than Bitcoin and has a higher number of currency units, for this reason it has branded itself as “silver to Bitcoin’s gold”. The first Altcoin was actually created in 2011 - it was called Namecoin. Although it featured as a currency its primary purpose was to decentralise domain name registration, which makes internet censorship much more difficult. Other Altcoins have tried to be much more innovative. For example, Darkcoin hoped to provide a platform for completely anonymous transactions - this was a huge hit with the crypto community and soon sparked a line of clones. Bitshares described itself as “a fair version of Wall street”. And the hugely innovative and popular Ripple serves as a protocol users can employ to make inter-currency payments with ease, which is even being picked up and utilised by a handful of banks in the states.