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Altcoins and You: Your Ultimate Guide to New Crypto Coins8-min read

Karan Kumar

Karan Kumar |  Updated on 08/1/2023

The crypto ecosystem has grown far beyond its pathfinders in Bitcoin and Ethereum with thousands upon thousands of unique tokens being available on the market. These tokens range from fast-growing GameFi projects to some of the world’s leading DeFi initiatives. In terms of terminology, any crypto asset other than Bitcoin is called an altcoin with examples including Solana, Polygon, Sandbox and many many more.

You can buy crypto coins or altcoins using crypto exchanges. However, you must do thorough due diligence before buying any crypto coins. As of February 2023, there are more than 21,000 altcoins listed on the premier crypto tracking website, Coinmarketcap.

Altcoins: Best Crypto Brokers in February 2023

To buy new crypto coins you can use the top crypto brokers like Binance and CEX.IO.

CEX.IO Review

CEX.IO Review

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Pros

  • list bullet Very low fees, highest spot trading commissions capped at 0.25%
  • list bullet Very easy-to-use and user-friendly dashboard, one of the best UX scores on the market
  • list bullet Over 200 crypto markets to choose from, all accessible from their comprehensive mobile app too

Cons

  • list bullet Different fees for different payment methds
  • list bullet Some features are exclusive to US customers
Binance Review

Binance Review

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Pros

  • list bullet Advanced charting with a variety of choices for overlays and indicators.
  • list bullet Has the option to use Binance Lite which is very useful for beginners.
  • list bullet Low fees and one of the most reputable crypto brokers.

Cons

  • list bullet Digital wallet is third-party software.
  • list bullet UI can be most suited for professionals and may be complex at first glance.
  • list bullet Strict account verification.

Featured Exchange: CEX.IO

CEX.IO is one of the most user-friendly exchanges in the market and offers a wide range of altcoins for purchase. The exchange has a very smooth process for buying altcoins. It requires no verification process if you are only buying bitcoin and ether. For other altcoins, CEX.IO requires only a basic verification process that takes less than 10 minutes. The exchange also offers a variety of payment methods, including credit cards, debit cards, wire transfers, and SEPA transfers. CEX.IO offers a wide range of altcoins for purchase, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. They also offer a variety of lesser-known altcoins, such as Stellar Lumens, Cardano, and IOTA. CEX.IO is one of the few exchanges that offer Ripple for purchase. They also offer a variety of fiat currencies, including USD, EUR, and GBP.

 

CEX.IO

 

We recommend these platforms after testing many of the leading crypto brokers in the market. Various factors were considered like security, user experience, legal compliance, deposit and withdrawal limits, customer support, etc.

This being said, security was one of the main foci for our rankings. There are many instances where the security of commercial crypto brokers were compromised and funds were threatened or even stole. Therefore, it’s important to choose the brokers whose security and tech infrastructure are top-notch and always evolving. This list of recommended crypto brokers outlines the exchanges who’s security is the best in the industry with the aforementioned three being the most trustworthy and robust exchanges in the ecosystem so far.

What Are Altcoins

Blockchain has disrupted several industries like finance, games, arts and several others. Many altcoins, the tokens native to the Blockchain project in question, are being launched in different industries with examples of some of the altcoins in the finance domain being $AAVE( Aave), $COMP (Compound) and $YFI (yearn. finance). Similarly, the gaming domain sports leading altcoins such as $AXS( Axie infinity), $ALICE (my neighbour Alice), etc.

new crypto coins India

There are also some altcoin projects that are even challenging the incumbent Blockchain ecosystem king Ethereum like Cardano and Avalanche.

How to Buy New Crypto Coins in India

You can buy new crypto coins by following the below steps:

  1. Choosing a broker
  2. Creating an account
  3. Depositing funds
  4. Searching for new Crypto coins
  5. Trading

Step by step tutorial on buying new crypto coins

The process of buying new crypto coins is the same in most of the exchanges. Here, we will see how to buy new crypto coins from Binance:

Step 1: Login to Binance account and Click BUY NOW

Step 2: Choose the fiat currency that you have. Enter the amount you want to spend and the system will display equivalent crypto that you will get. Click CONTINUE

Step 3: Select your preferred payment option. To buy with a debit/credit card, click Visa/ Mastercard then Continue

Step 4: Enter your Card details

Step 5: Follow the payment instructions

Step 6: Your debit/ credit card will be added. Click Continue

Step 7: Check the fees and payment details and confirm the order within 1 minute else thereafter the crypto would be purchased on the current spot market price. Click Refresh to see the new price after 1 minute.

Choosing the Right Crypto Exchange for You

Some of the factors which need to be considered when choosing a crypto exchange.

Security: There are many exchanges whose security were compromised and funds were hacked. It’s best to avoid those exchanges, whose security were compromised in the past.

Trading Fees : The lower the fees, the better. Some crypto exchanges have their own native tokens, which can be used to pay trading fees.

Investment type: A crypto exchange can be used for different purposes like day trading, swing trading or long-term HODLing. A day trader selects crypto exchanges which provide high margins and leverage.

Deposit and withdrawal limits: most crypto exchanges have a limit on the amount of withdrawal or deposit in a given timeframe.

Recommended Brokers

There are also many other factors which need to be considered while choosing a crypto exchange like its tech infrastructure, user experience (UX), funds insurance, customer support, liquidity, jurisdiction amongst other valid criteria. We endorse crypto brokers only after a thorough due diligence process and analysis.

We open crypto accounts with them, test their different features, withdrawal and deposit limits, available payment options, customer support, etc. We also take community feedback before recommending the crypto brokers. You can also check review sites for the best crypto trading platforms.

How to Store Your Crypto Safely

When you use a crypto exchange, you will be provided a crypto wallet. A Bitcoin wallet helps you to view and initiate transactions to different addresses. There are different kinds of wallets like Web wallets (offered by the majority of Crypto exchanges), cold wallets, etc.

It’s more likely that you will hold your Bitcoin and Crypto assets through Crypto exchanges. The hard fact is no crypto exchange is 100% secure. It’s best to hold your Bitcoin through cold wallets for additional security.

Cold wallets: these wallets are offline, which means your crypto assets can’t be accessed by a hacker.

Multi sig wallets: this provides an additional layer of security. These require multiple forms of verification after which you are granted access to your wallet.

What Makes a Good Project

There are many industries like finance, health, supply chains, entertainment and more that are being disrupted by Blockchain. Let’s take an example in the Finance industry. Some of the crypto coins are Uniswap, Aave, Compound and Centrifuge. Each of these coins are solving a particular problem present within either the traditional financial system or in the novel Blockchain DeFi ecosystem. It’s very important to note that the value of the crypto coin depends entirely on the project and the problem it solves and the genuine economic value it provides. Otherwise it will lose its value over time and bleed out its investors as can be seen with Terra coin, which eventually collapsed due to flaws in its own financial engineering model.

Top Ongoing Blockchain Projects:

Polygon: This Project is solving a very important problem in the  larger Ethereum network related to scaling.
Aave: This protocol allows users to borrow and deposit crypto.
Solana: It is a blockchain network designed to host dapps (decentralized applications)

new crypto coins India

How to Find a Good Crypto Project:

In a growing ecosystem of Blockchain-based projects, one can separate the leading ventures from the scams through a number of relevant criteria. With this is mind, we have outlined the two factors what we have come to believe are the pillars of any good crypto project and its relevant token.

Use case: a good project is one which has a genuine use-case and attempts to solves a real problem of economic value. For example, Polygon($MATIC)

Team: Usually, a project conceptualised, structured and executed by a well-experienced team with a long track record of success and accomplishment is more likely to succeed than a project started by a newbie team.

It’s very important to do the due diligence of the crypto project before investing. You can also read the project’s whitepaper, engage with their team on Discord, follow their Github.

Red flags: How to Spot Coins that You Should Avoid

There are more than 21,000 crypto coins listed in Coinmarketcap. However there are many crypto coins which are most likely a scam. Therefore, it’s very important that you do a proper audit on the crypto project before investing.

Some of the red flags are:

Team: It’s very important that you cross verify the project’s founder and their team on social media sites like LinkedIn, Twitter, etc. An anonymous team or one without a solid track record of success or any established relationships with known and reputable players in the crypto ecosystem should raise alarm bells.

GitHub: Most of the crypto projects are open source. Make sure to visit their GitHub profile before investing.

Too good to be true: If a crypto project promises many things in their whitepaper and only paints a rosy picture, it’s better to take their claims with a pinch of salt.

Automated Crypto Trading

Crypto trading bots are AI powered algorithms designed to place trading orders, analyse new crypto coins and more. They can help you to track the market 24*7, automate trading strategies, amplify trading profits, backtest a planned strategy, calculate metrics like VaR (Value at Risk), Sharpe ratio etc. A systematic trading / investment strategy outperforms many professional traders and many of the leading experts in the financial field fully expect automated trading to wipe out Hedge Funds in the not-too-distant future. This is the primary reason that many bitcoin traders and investors are starting to use bitcoin bots.

Furthermore, these crypto robots can also help you analyze the crypto market using the latest machine learning technology which are used to predict the markets. However trading bots are not regulated therefore it is best only to use the bots which are proven to be safe to use.

How to buy Ethereum in India

Automated trading robots are genuinely revolutionary and, within a few years, they will irrevocably change the entire investment landscape. Earlier, only Hedge Funds with high AUM (asset under management) used these bots but now these technologies are available to retail traders and investors.

Let me give you an example of how these bots help generate great returns. Aladdin is a trading bot used by BlackRock (AUM: Around $10 trillion). This bot has delivered great returns to its elite investors which include pension funds, sovereign wealth funds and even sovereign nations.

Some of the top crypto trading robots can be found on our dedicated page linked above.

Top 10 Current Altcoins

1. Ethereum: As of sept 21, 2022 Ethereum market capitalisation is around $165 billion which is 16% of the entire crypto market capitalisation. Recently Ethereum has also moved from PoW( proof of work) to PoS ( proof of stake) consensus mechanism, which has significantly cut down on their energy costs and therefore made their ecosystem much more efficient and eco-friendly.

2. BNB: This is an altcoin which powers the Binance chain ecosystem. It can be used in a range of applications and has many use cases like in Binance DEX, Binance launchpad, etc.

3. XRP: It was launched in 2012. The primary use case of XRP is to transfer other currencies over its Ripple network. It reached a whopping $130 billion market capitalisation back in 2018.

4. ADA: Cardano is a scalable blockchain network and a very early adopter of PoS ( proof of stake) consensus mechanism. It was launched in 2017 by Charles Hoskinson, the co- founder of Ethereum.

5. SOL: Solana is a high performance blockchain network which can be used to build crypto apps. SOL is the native currency in the solana network. It’s TPS( transaction per second) is one of the highest among the blockchain network.

6. Doge: this altcoin is the original meme coin. This crypto coin was started as a joke in 2013. The dogecoin network is based on PoW( proof of work) consensus mechanism and mines 1 block every minute.

7. DOT: DOT is the native currency in the polkadot network. Polkadot is designed to support multiple chains called para chains in its network. It reached a market capitalization of more than $50 billion in November 2021.

8. AVAX: It is a blockchain network like Ethereum and Solana. AVAX is the native token of this network. Avalanche has a transaction per second of 4500+, which is one of the highest in this industry.

9. Matic: it is the native crypto currency on the Polygon, which provides scaling solutions in the Ethereum network. The token MATIC is mostly used to pay transaction fees.

10. UNI: This altcoin is an ERC 20 standard crypto coin. The Uniswap protocol is managed and governed by UNI holders. It was the first DEX ( decentralized exchange ) based on the AMM( automated market making) model.

Is Crypto Legal in India

The government of India has not passed any regulations regarding crypto. The Indian parliament is yet to table the crypto currency and regulation of the official digital currency bill. This being said, crypto trading and investing is not illegal in India.

However, the Indian tax authorities expect a solid tax compliance with the crypto exchanges operating in the country. We vet only those crypto brokers which are 100% tax compliant with the local tax laws.

Taxation on Crypto Earnings

Crypto earnings are taxed at 30%. Also losses from crypto trading or investing cannot be set off against any other income. Gifting crypto will attract tax from the receiver’s end. The Reserve Bank of India has also requested the Finance Ministry to come up with a robust Crypto bill.

How to Sell Crypto

You can sell your Crypto through the same exchange, from which you bought your crypto. There can be various reasons to sell Crypto holdings like you would like to book your profit, or exit from your crypto investments, etc.

Investing Responsibly

Crypto is a relatively new asset class compared to traditional asset classes like stocks, commodities and bonds. In September 2022, the total crypto market capitalization stood at $1.2 trillion and is expected to grow at healthy rates.

However, there are some important points which need to be followed. Crypto is a fast changing industry. Back in 2011- 13, coloured coins were the standard for the launch of new crypto coins. However things completely changed after 2015 with the launch of Ethereum’s ERC 721 standard. Many projects related to coloured coins back then are now practically worth zero, destroying the initial investments of many would-be crypto moguls. Therefore, it’s best to only invest that money which you can afford to lose.

The other thing to note is that the crypto market is hugely volatile. This should also be an important consideration before you invest your money. Also, do thorough due diligence on your selected blockchain projects before you invest your money on it.

Conclusion

If done properly, Investing in new crypto coins can yield good returns. However, It’s very important that you do a proper audit and research the project before investing. You can use their respective Whitepaper, GitHub links and other tools to analyse the aforementioned project in detail. Moreover, it’s best to buy crypto coins from crypto exchanges which have a robust level of security, well-constructed tech infrastructure, responsive customer support, positive user experience and other important pillars of a successful DeFi project.

Altcoins are emerging as a revolutionary force in the crypto industry. They offer an innovative way of reshaping the crypto concepts and unlocking increased profitability potentials. From increased market access to financial instruments, improved privacy, and innovative consensus algorithms, altcoins offer a world of opportunities for investors who are looking to maximize their profits.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

FAQs

How to buy new crypto coins in India?

You can buy new crypto coins using your debit/ credit cards on crypto exchanges.

Where to buy new crypto coins in India?

You can buy new crypto coins using crypto exchanges like CEX.IO, Binance, etc.

What are the best exchanges to buy crypto from?

Some of the best Crypto exchanges are Binance and CEX.IO.

Why invest in crypto?

Crypto is a new asset class and many good altcoins like solana, polygon have delivered massive returns.

How much can a crypto increase over time?

It depends on a few factors like technical analysis, government laws on crypto, and macro economic factors.

What are the pros of buying crypto?

Some of the pros are this is a new asset class for investment, also can be used for inflation hedge.

What makes a good Blockchain project?

A good blockchain project is one which solves a real problem or provides new useful or exciting services. For instance, Sandbox which is a Metaverse based altcoin.

How to buy new crypto coins online?

You can buy new crypto coins from crypto exchanges like CEX.IO and Binance.

When is the right time to buy altcoins?

It's best to invest in good blockchain project . You can use Coinlist to track new blockchain projects.