In the wake of Bitcoin, a horde of alternative coins (altcoin) have risen to try and fill up the world of cryptocurrency with brave new ideas and moneymaking opportunities. It’s a kind of every coin for itself world out there, with each trying to muscle their way into the limelight so that consumers will choose them as investment properties and products.
The sheer number of these initiatives indicate that many are bound to fail, in the same manner, that many new small businesses fail to make it through their first year. It is heartbreaking when one of these endeavors go under, but not just for the people who undertook them. It is also a hit on those who invested hard-earned capital in their hoped-for success that never came to fruition.
If you are on the investment side of the equation, you need to know what alternative coins really the stuff must succeed. And not just in terms of a splashy opening and successful initial coin offering, but also for the long haul as a major player in the cryptocurrency market.
If you can spot these, they offer excellent opportunities for great investment returns. A trading program in the manner of Crypto CFD Trader can help you do that without you having to do any of the sleuth work. Here are some of the characteristics that set the best alt coins apart from the many in competition with them that never make the big time.
1. The Hook
It’s one thing to have a great idea. But if it’s endlessly complicated to explain, it can lose a lot of people in the translation. Boiling an idea down to one line is something that movie producers have been doing for years to shorthand what their film is all about. And it’s a skill that all alt-coin creators should have in their toolbox as well. Because the public attention span is so fickle, you need to be able to grab them quickly.
2. A New Angle
Everybody wants to do what Bitcoin has done. But unless you somehow have the technology to counteract what flaws there might be in the design of Bitcoin, you’re fighting an uphill battle as an alt-coin maker. Even if you did have that technology, you’d be fighting against the entrenched niche that Bitcoin has carved. It’s better as an alt-coin creator to strike out on your own and find an underserved idea that no one has yet approached.
3. Staying Power
As with any new undertaking, there will be excitement and fanfare at the beginning of an alternative coin’s existence. But as time passes, consumers’ attention will be drawn to newer coins. That means the team behind an alt-coin must be continually looking for ways to innovate and keep the attention, as much as possible, focused on their product.
If you’re investing in altcoins, you should be keeping an eye on these characteristics. And, if you’re about to create one, you better make sure you have them all covered if you wish to succeed.
If you are interested in even more cryptocurrency-related articles and information from us here at Bit Rebels then we have a lot to choose from.