A person who trades cryptocurrencies alternative to Bitcoin.
What Is an Altcoin Trader?
Altcoins refer to any cryptocurrencies that are not Bitcoin, and are seen as “alternatives” to Bitcoin, hence the name. Altcoins are blockchain-based but use different consensus mechanisms to validate transactions. Typically, altcoin developers may advertise their token to be superior to Bitcoin in some way (such as a faster transaction speed, cheaper transaction fees and so forth). Various altcoins compete with Bitcoin for market capitalization hoping to overtake Bitcoin’s top position someday.
A few of the more well known altcoins include Ethereum, XRP, Litecoin, Cardano and Dogecoin. Altcoin traders generally trade large volumes of altcoins by the day seeking short term profits. Unlike HODLers, who intend to buy altcoins and keep them for years to come, altcoin traders aim to strategize based on real time news and anticipate optimal timing to realize greatest potential gains, but can incur big losses instead. Altcoin traders attempt to capitalize on the volatility and price fluctuations that a cryptocurrency (specifically altcoin) may undergo in a short period of time.