Altcoins faucet list
The term Altcoin stands for any other virtual currency "alternative to Bitcoin". Today there are many cryptocurrencies, some born with the intent to be complementary to Bitcoin as a digital currency, trying to improve its characteristics, others made only for speculative purposes.
Given that the value of these alternative cryptocurrencies are not today at the levels of Bitcoin, their faucets are currently more willing to provide a good amount, giving users the opportunity to build a good portfolio of Altcoins, waiting for their growth in value. So why not take advantage of it?
Here are the faucet lists of those cryptocurrencies that are emerging to be the most solid and with the highest potential.
Why accumulate Altcoins?
It must be premised that at present, almost all cryptomoney, beyond a few rare exceptions such as online services or specialized sites, cannot be used to make purchases directly, but must go through at least one conversion into Bitcoin. This is due to their extreme volatility in value, due to a still quite low capitalization.
The advantages of collecting altcoins are therefore others, namely:
- make profit in the short term, using exchanges and speculating on their frequent fluctuations in value, through trading techniques;
- or store in their wallets large amounts of these alternative electronic currencies, waiting for their future increase in value, similar to Bitcoin.
In the first case, then, after having scraped discrete amounts of altcoins from the faucets, they are traded on the exchange platforms in order to obtain rapid gains, exploiting the high volatility and the moments of pump and dump. All cryptocurrencies currently in circulation can be used for this purpose, even those defined as "shitcoins", i.e. born only for speculative purposes: intraday trading thus represents a good solution to gain. Moreover, the use of faucets to collect these coins for free contributes to calm the risk inherent to this kind of financial operations, as they allow you to avoid any investment in real money, such as euros or dollars.
In the second case, however, not all altcoins are functional for the purpose, but it is necessary to make a careful assessment of the underlying projects and understand which of them actually can aspire to represent a true long-term investment.
The requirements of the best altcoins to own
For those who prefer to have a drawer approach with altcoins, it is advisable to inquire carefully about the soundness of the coin and its actual ability to achieve the purposes announced: even if clamming in faucets is not an investment in money, it still represents a use of time not to be underestimated or wasted.
As an example, the basic idea of Dash cryptocurrency is to promote secure, private and fast transactions: in order to reach such ambitious goals, therefore, its developers must constantly improve the blockchain, promote the cryptocurrency in an adequate way through marketing in order to attract capital and, finally, surround themselves with a community that creates a debate around the growth of the project. Only if all these elements are present, we can talk about a currency with a good future potential.
Let's see specifically what are the requirements that differentiate a reliable altcoin from a shitcoin.
Technology
Cryptocurrencies are first of all based on technology, in the sense that they are born to solve problems, such as, for example, facilitate transactions, make them fast or private.
First of all, if accessible, it is very important to consult the documentation, such as the whitepaper, which explains what the altcoin wants to solve, with which algorithms and in which steps: who is not a computer technician is sufficient to evaluate more or less the abstractness or the feasibility of the stated purposes and methods.
A good cryptocurrency, moreover, must have its source code publicly accessible on platforms like Github: through these repositories it is possible to evaluate if the technological project is original or derived from others (fork) and the evolution of the same, considering constancy and relevance of updates. From these analyses it is possible to understand if the team of developers continues to implement the source code, fixes the bugs and therefore keeps the project active.
Capitalization and third-party trust
One of the most important requirements for a cryptocurrency is its capitalization, i.e. the amount of real money (FIAT) invested in it. The higher its capitalization the more solid and relatively less prone to sudden fluctuations the altcoin considered is, compared to the performance of other digital currencies. As proof of this, one of the most authoritative sites on cryptocurrencies, Coinmarketcap, ranks all altcoins first of all precisely according to their market capital.
In order to assess the economic soundness of an altcoin it is also necessary to investigate the trust given to it by third parties, by adopting it in online stores or as currency in credit cards and ATMs or as a means of donation.
Marketing
In order to raise capital, it is necessary to publicize the features of an altcoin, so marketing is used to entice users to buy and use it. But the advertising must be targeted and truthful: those altcoins that propose a very aggressive marketing, which promises too much, big easy earnings and that does not express with transparency the real purpose of the project, must be absolutely avoided!
The community
A coin that is not used obviously ends up having no value. So the community of users that gravitate around the project of an altcoin is important to understand its future potential. The more this community is big, active and able to develop debate, the more the transactions and the importance of the coin increase. To evaluate the amount of discussion about an altcoin you can refer to sites like Google Trends, social sites like Reddit or forums like BitcoinTalk.