What are altcoins, and where can you buy them?

Altcoins can be broadly classified based on their functionality, mechanism or origin. Some popular categories include:

Stablecoins are a type of altcoin that peg their value to another cryptocurrency, fiat currency, or a commodity like gold. Stablecoins are designed to remain 'stable' and always be equal to the pegged asset irrespective of market speculation. Tether USDT, for example, is a stablecoin whose value is pegged to the US Dollar (USD), such that one Tether USDT is always equal to one USD. Binance USD and USD Coin are some other examples of stablecoins.

Meme coins are cryptos that are based on popular internet memes. Dogecoin, for example, is a meme coin named after Doge, a popular meme of a Japanese dog breed. 

Meme coins are generally considered the most volatile type of altcoins because community sentiment often sways their value. Meme coin Shiba Inu's price, for example, soared after Elon Musk tweeted a picture of his Shiba Inu puppy. Dogecoin, Shiba Inu, and MonaCoin are some popular meme coins.

Non-Fungible Tokens, or NFTs, are unique digital assets that can be purchased, owned, transferred, and sold. The most common type of NFTs are pieces of original artwork, like the collections by Dribblie and Bored Ape Yacht Club. NFTs are not limited to artwork though, and can also be used to represent other unique assets like ownership documents.

Utility tokens are altcoins designed to be used within a specific blockchain network. They are often issued at an Initial Coin Offering (ICO). Investors can purchase these utility tokens in different cryptocurrencies or even fiat money to access unique products or services within the blockchain. Utility tokens may also be offered as rewards to users on the blockchain. Basic Attention Token (BAT) and Golem (GNT) are popular examples of utility tokens.

​​You can buy different altcoins at crypto exchanges that list them. Just sign up with one of the available exchanges and invest the amount of money you're comfortable with into any altcoin you select. But before you sign up, compare crypto exchanges by analysing their fees, features and benefits. You should also consider checking if the exchange you choose is registered with AUSTRAC to ensure it complies with local laws and regulations.

If you are thinking about which altcoin to buy, there's no straightforward answer. Every cryptocurrency other than Bitcoin is an altcoin, and which altcoin to buy or whether you should buy crypto at all depends on your risk appetite and investment goals. 

Altcoins like Ethereum and Binance Coin are quite popular with investors, but they still experience price volatility. Stablecoins are considered safe bets against market volatility but don't increase in value. They may not suit someone looking to profit from a price rise. Some meme coins might quickly fetch big profits, but they are highly volatile and can just as easily lose you money. Therefore, one can’t really pinpoint which is a good altcoin to buy for everyone. 

You need to carry out your own independent research and invest your money in a cryptocurrency that is most likely to help you meet your investment goals. However, don’t forget that cryptocurrency is a highly volatile asset class, which could lead to huge gains and losses, depending on the crypto you choose and your timing. To avoid losing your hard-earned money, you might want to limit the amount of money you invest in cryptocurrency to a sum you can afford to lose.