How to distinguish between altcoins and mainstream coins? Which one is more worth investing in? Learn about the coin circle in one article

The difference between altcoins and mainstream coins is mainly reflected in: 1. Market value and liquidity: The mainstream currency has a large market value and strong liquidity; the altcoins have a small market value and poor liquidity. 2. Technology and innovation: The mainstream currency technology is mature and has extensive innovation; innovation or replication based on altcoin technology. 3. Application scenarios and communities: mainstream coins are widely used and active in the community; altcoins are narrow and small in the community. Investment choices require risk tolerance and goals.

Altcoins and mainstream coins can be distinguished from the following aspects:

• Market value and liquidity
  • Mainstream coins : usually have a large market capitalization and ranks high in the cryptocurrency market, such as Bitcoin, Ethereum, etc. They are highly liquid and have a wide range of trading pairs on many cryptocurrency trading platforms, and investors can buy and sell more easily.
  • Altcoin : The market value is relatively small and the liquidity is poor. Some altcoins may only be traded on a few small trading platforms, with large bid and offer spreads, and large transactions may have a significant impact on prices.
• Technology and innovation
  • Mainstream coins : They often have relatively mature technical architecture and extensive community support. For example, Bitcoin adopts the classic architecture of blockchain technology, while Ethereum introduces the concept of smart contracts, providing a platform for blockchain application development. The technology updates and upgrades of mainstream coins are usually rigorously discussed and tested by the community and have high stability and security.
  • Altcoins : Some altcoins are modified or innovated based on mainstream currency technology, trying to solve some problems in mainstream currency, such as increasing transaction speed and reducing handling fees. However, there are also some altcoins that simply copy the code of mainstream coins, lacking substantial innovation.
• Application scenarios and communities
  • Mainstream coins : have clear and extensive application scenarios. Bitcoin is often regarded as digital gold for storage of value and cross-border payments; Ethereum supports the development of various decentralized applications (DApps), covering multiple fields such as finance, gaming, and social networking. Mainstream coins have a huge and active community, and community members actively participate in the development, promotion and maintenance of projects, providing a strong impetus for the development of projects.
  • Altcoin : The application scenario may be relatively narrow, or it is just in the conceptual stage and has not been widely used and recognized. Its community is usually smaller in size and is not as active as mainstream coin communities, which may affect the development and promotion of projects.

Regarding which one is more worth investing, it depends on the investor’s risk tolerance, investment goals and expertise:

• Mainstream coins : suitable for investors with low risk tolerance and pursuing stable investment. Due to its large market value, good liquidity and mature technology, mainstream coins are relatively stable and do not easily experience extreme price fluctuations. In the long run, mainstream coins are expected to increase value with the development of the cryptocurrency market, but because their prices are already high, the potential room for upward growth may be relatively limited.
• Altcoins : Altcoins may be more attractive for investors with high risk tolerance, high returns and certain knowledge and investment experience in cryptocurrency. Some altcoins with innovative technologies and application prospects may bring several times or even dozens of times the return on investment if the project develops smoothly. However, the risks of altcoins are also relatively high. Due to their small market value, easy to be manipulated by the market, and the price fluctuates dramatically. Many altcoin projects may fail due to technical problems, market competition or poor team management, resulting in investors losing all their money.

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