They are highly volatile, fast paced markets, in which a lot of money can be made in a short space of time. Investors are using sites like KoCurrency which is designed to make cryptocurrecny price predictions in order to help them maximize profile and reduce risk.

But make no mistake: Trading on a decentralized exchange like Bitsquare is more secure, more private, and for anything other than very small trades the fees are cheaper too.

Altcoin Trading Terminology Here are a few common concepts and technical terms that you will need to know before you get started: The market capitalization of an altcoin is the total value of all its coins.

Update 2018

It is common practice to use the currently available supply rather than the total supply, and this trading exclude unreleased premines. Market cap is therefore calculated by multiplying the price per coin by the number of coins sus released onto the open market. Pre-mines can be used trading legitimate purposes: They can altcoin be dumped onto the market, for a quick and easy profit, by a developer who then abandons the coin and disappears sus a kind of exit scam.

One way to do this is to have very easy mining for a short period after launch, during which the developers seek to instantly mine a large number of coins for very little cost. The difficulty then increases rapidly after a short period sus time.

What are altcoins?

Sometimes this short and highly profitable mining period may take place before a coin trading even been announced to the public. A ninja launch is basically a method for conducting an instamine.

It involves announcing a coin suddenly with no prior warning, sus the mining beginning immediately as the coin is announced. By the time other users have had the chance to set themselves up to start mining, the developer may have already conducted their own instamine. Sus ninja launch tactic is to create an announcement with only very basic information, conduct and instamine, then add more information to attract interest only after a significant amount of coins have already been mined.

In cryptocurrency it is generally used to refer to negative talk about a coin which is inaccurate or misleading, often posted in forums and through social altcoin. This kind of FUD may be the result of a genuine fear response among the holders of a coin whose value is crashing, or it may be deliberately spread in order to suppress the price — either by competing coins, speculators looking to pick up a bargain before hyping the coin later, or just by angry trolls with some kind of grudge.

Some coins have anonymous developers who do not reveal their real identity. But if the developers are anonymous then there is a greater risk that they will disappear, and this can be especially risky if there is a premine that they may be able to dump for an easy profit before they vanish.

The rate at which new coins are generated and the pattern by which this changes over time. An investment scam in which initial investors are paid returns from the capital of subsequent investors, and an altcoin supply of new investors is therefore needed for returns to be paid. If there is no reason for people to buy a coin as anything other than an trading, or if its creators never intend to pursue regular users, for example, then it may be described as a ponzi sus.