How to buy alternative coins
Before we explain where and how to buy alternative coins, let’s first take a deep dive into what alternative coins are.
First, there was Bitcoin, then people examined the technology and figured out there were numerous other applications that could harvest its power.
The first altcoin that entered the market of cryptocurrencies was Namecoin. It was created in April 2011, 2 years after the creation of Bitcoin. Namecoin was introduced to decentralize the domain registration market, and it immediately showed the diversity of use cases for distributed ledger technology.
After Namecoin thousands of new coins have been created, ranging from smart-contract-platforms to privacy coins and from decentralized exchanges to Bitcoin clones. The reason new altcoins are created, which in essence isn’t that hard to do, can generally be placed in 3 columns:
- To improve current technology
- To decentralize a specific product or service
- To make a quick buck
To be fair, this is overly simplified, and if you want to dig in deeper you’ll find that its a bit more complicated. Some altcoins are build on top of other altcoins, some are forked away from an altcoin. Some are simply reused technologies with a different name and perhaps a slight adjustment in features.
However, there are coins invented that are actual game-changers. One of those game-changers is Ethereum. It was created with the idea to enable other altcoins and smart applications to run on top of it and it revolutionized the entire market. It increased the scope of possibilities and ideas, while also altering the perception of where cryptocurrencies were evolving towards.
There are people that believe that cryptocurrencies will cause the digitization of everything. From stocks to (virtual) real estate and even art. Ownership will become encrypted using distributed ledger technology. People will be able to only own a fraction of something, which will be recorded on a blockchain.
And all of these ideas and applications will probably use a different altcoin. But herein also lies one major problem of the creation of all these different altcoins. The amount of altcoins has exploded into the thousands. Many projects being abandoned, leaving investors with worthless coins.
That’s one of the reasons why we started CryptoDeepDive.com. We will look into the most interesting projects within a couple of specific verticals. We will review these in an honest, and open way, making sure we give you the right tools to make an informed decision. Then it’s up to you to pull the trigger, or not!
Binance is one of the only cryptocurrency projects that reached the unicorn status within a couple of months after its creation. It specializes in offering an enormous amount of different altcoins to trade, while at the same time trying to limit the number of worthless coins available on the platform.
Binance has grown to become a world-leading crypto exchange. So far it has always succeeded in staying ahead of the curve.
In the last 2 years, Binance has been ever-expanding and increasing the number of services they offer, while always making security their main focus. It has become a well know Brand (with a capital B) in the crypto space.
Only recently Binance started accepting different ways of Fiat into their system, before that all the trading was done using mostly Bitcoin.
After signing up you have the option to fully identify yourself (which makes it possible to withdraw and deposit bigger amounts), but since it isn’t registered in the US or Europe their KYC process is less strict. Don’t let that get you fooled though, it’s one of the most secure places to buy and trade crypto but they value your privacy.
Binance offers the possibility to margin trade, something we recommend to only be used by experienced traders. They also offer incentives for people to leave their crypto’s on the exchange, however, we still recommend using your own hardware wallet to store your cryptocurrencies.
All in all we personally use Binance on a frequent basis and wholeheartedly recommend them. By the way, they also have their own cryptocurrency called Binance coin, which has a couple of interesting features for holders and also halves the amount of fees you have to pay for trading on their platform.
You can learn more about them on their site.