By When looking for which Altcoins are the best, I will assume you are looking for the biggest potential gains, with the minimum foreseeable risks. There are currently over 1500 Alt coins and most are very early in their life cycles. That means, many of these coins will likely generate decent returns, while others will likely completely fail altogether. For the purpose of answering your question, I will share 3 types of coins I believe have huge potential and why they should also mitigate risks (a little).
Privacy Coins
While many people assume that Bitcoin, Litecoin or Ethereum are anonymous to use, the truth is, most are able to be tracked through their blockchains. Transactions are anonymous in terms of wallets not having a name attached, but as the complete transaction histories are readily available on the blockchain, once any particular address owner is identified, it becomes easy to track where and to whom these funds are then transferred to.
For example, you open an exchange account and verify your identity. You then fund that exchange account with Bitcoin. The address you funded from could eventually be traced back to your email and identity. If you were to use that address to send money or receive money, someone who specializes in dissecting the blockchain could easily find out what you were up to. While currently, this is not an issue unless you are engaging in illegal activity, if the government was to ban or regulate cryptocurrency, this could pose an issue.
Privacy coins like Monero or Verge are therefore becoming more popular as they are much harder to track and trace. In the event that a ban or heavy regulations were to happen, these currencies could surge and maybe a great hedge against a complete collapse of your portfolio due to these adverse market conditions.
Platform Coins From China
Platform coins like Ethereum, are essentially coins that are emerging to compete with Ethereum and build other blockchain based solutions on their platforms. While Ethereum is a clear market leader in regards to these types of coins, newer technologies are emerging that look very promising.
For example, Neo is hailed as the Chinese Ethereum and if the Chinese block on internet traffic to the Ethereum network was to happen, like they do with Facebook, for example, it would mean a large percentage of Chinese blockchain solutions would be built on NEO. Considering that China has nearly 25% of the world’s population, this could present a great opportunity to buy and hold it as a hedge against that actuality. Other coins that also may fit into this class of coins and be worth a look include TRX (Tronix).
TRX is very popular in China and has a huge community behind it. Their mainnet was launched at the end of March and we should see a lot of price action around the time the overall market picks up and their virtual machine is released, end of July.
Both of these coins are great buys, especially if China does only allow Chinese-based solutions to penetrate its firewall. If this does happen, both coins could surge creating large returns for investors. Even if China does allow traffic from abroad, both solutions have much bigger followings in Asia and will likely still see some sort of positive price movement and returns.
Scaling Solutions For Bitcoin
While Bitcoin is the world’s first and most reputable cryptocurrency, it also has been struggling with a few problems. The main concerns are that its mining network is becoming centralized, its transaction fees are getting too high and its speed is becoming too slow.
LTC, for example, was created for this very reason – to be a lighter, faster version of Bitcoin.
While Bitcoin and cryptocurrency, in general, is becoming more mainstream, more users are going to put more strain on Bitcoin’s older infrastructure. Bitcoin is attempting to address some of these problems like, for example, attempting to reduce fees by introducing the lightning network. That being said, many emerging Alt coins have already addressed some of these concerns and are gaining traction and adoption in the sector. 
One such Alt is BitcoinGold. BitcoinGold (BTG) is ASIC resistant and, therefore, less likely to become too centralized in terms of the mining network. Then there is BitcoinCash (BCH), which has attempted to increase the overall block size to allow more transactions to be done at a cheaper fee.
These are just a few of these types of coins and as the sector progresses, we will likely see the best options surge in value. Alts that look to solve the issues with growing electricity costs for mining and limits in circulating supply are also worth a look.
Coins with Real-World Uses
Other things to look for are very cheap, low cap (under $1- $20 million market cap) coins, with great ideas that look to solve real-world problems.
For example, recently I came across one coin called Amchart that is looking to put medical records on the blockchain. Another one is Ponderapp, which is planning to make a blockchain-based dating system that rewards matchmakers for making introductions between individuals. These are both real-world examples of solutions that may one day revolutionize their industries and can potentially have huge returns to those who invest early in their adoption cycles.
Picking the Right Coins
Professional traders spend hours scouring the Internet looking for these types of opportunities and then assessing their fundamentals. If you are just randomly picking coins that may or may not take off, with 1500 plus coins, it will be like buying a lottery ticket and winning if you do get lucky. Additionally, many of these coins pump and get dumped and get bought again during their early phases, so learning to read the markets or finding professionals with some experience in the industry may be worth the time and effort.
CoinBeat is a platform that connects investors with industry professionals, traders, and insiders. Using CoinBeat as a primary source for information and tips allows for investors to piggyback and copy their own portfolios on the positions of professional traders and their strategies. Using it can vastly improve your chances of success while reducing the chances of buying into a coin that has bad fundamentals and will likely fail.
The key is to buy into a coin relatively early and slowly sell into the FOMO (fear of missing out) growth period that these types of coins usually experience. Also, do your research and only invest in projects you believe in and have done your homework on.
Another option is to subscribe to the daily and weekly market recaps and trading advice on CoinBeat, that will help cut down the time and energy required to do that market research and build a trading strategy around your picks and the ones that have the biggest potential.
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