To many, even those who have dealt with cryptocurrency for a while, the temptation to refer to bitcoin as cryptocurrency is real. Actually, so many find themselves talking about crypto but keep referring to bitcoins af if they mean the same thing. The truth is that bitcoin is just one of the many other cryptos but has gotten prominence as having been the first one in the market.
The first people to venture into cryptocurrencies without a doubt started off with bitcoins before altcoins started emerging in their numbers. To test the popularity of bitcoin, just search cryptocurrency on the internet and wait for it. I bet a significant number of feeds that will come up won’t miss mentioning the term bitcoin.
With myriads of trials, success stories, tragic failures, awry scamming experiences and more that bitcoin investors might have, maybe it’s time to look the other way. Looking the other way by investing in altcoins does not just mean that the bitcoins are bad, but it’s also a great strategy for risk distribution. Any person who wants to grow their investment and avoid the tragedy of massive losses never give a blind eye to diversification of investment portfolio. So, we nudge bitcoin investors to try some level of risk aversion just in case bitcoin experiences a nosedive in the future like it recently plummeted of course before picking up.
Drawing the line Between investing in Bitcoins versus Altcoins
While Bitcoin is still believed to be the standard coin in the cryptocurrency market, altcoins have quickly taken an uphill growth trend. This is based upon the recent reports showing a surge in the interest in alternative coins the past two years. Many investors are now strengthening their tendency to build portfolios with different digital coins.
Other than just creating various portfolios, users are also establishing these portfolios with numerous blockchain companies. Pioneer Bitcoin investors like Mark Cuban have taken this drive to have his portfolio consist of different digital coins. Cuban now has his cryptocurrency holdings comprising 60% BTC, 30% ETH, and 10% other altcoins like Litecoin and Dogecoin.
It is not a bad idea after all to have a diversified digital investment platform with different digital coins. A message that should be clear to the pioneer Bitcoin investors is that investing in altcoins is just the same as investing in anything else. Altcoins are not any different from stocks, private and public companies, as well as bonds. So, it is critical that as a pioneer Bitcoin investor you can give it a try.
Investing in Cryptocurrency (BTC and Altcoins)
One factor that every cryptocurrency investor has at the back of their mind is that investing in cryptocurrency can be very risky. The degree and level of instability and fluctuations in the market are very high and strong. It is very possible that an investor can make profit and build a fortune in a very short time but for some people, they may lose gravely. In most instances, it is advisable to just inject the much that you are comfortable losing.
Bitcoin remains to be the oldest and the very first cryptocurrency in the crypto market to be created. It has since remained famous and has reigned for quite a long time in the industry despite the existence of alternative coins. An, it is for this reason that most pioneer investors have stubbornly stuck with it without folding. Should I call it an element of brand loyalty?
However, looking at the recent technological advancements and developments in the cryptocurrency industry, many coins other than Bitcoin have come up. The alternative coins other than Bitcoin are what is commonly referred to as Altcoins. Ever since the creation of the first altcoin in 2015, there has been nothing but tremendous value growth recorded.
So, investing in Altcoins in the present cryptocurrency industry is equally worth just like investing in Bitcoin. Despite the fact that investing in cryptocurrencies particularly in altcoins can be riskier than in stocks or bonds, the returns are very promising. Besides, the market for altcoins is now popular to invest in.
Reasons for the Need to Divest into Altcoins
Altcoins are a good investment save for stablecoins, altcoins have a very high rate of volatility. It is just natural to find many users having Bitcoin as the very first in their mind when they are making intentions to invest in cryptocurrency. However, numerous but splendid alternative coins are present in the market today.
If you are looking for an alternative coin with a more stable value than Bitcoin, then it is best to try a stablecoin. However, there are numerous famous altcoins for instance Ethereum and Litecoin that are doing very well in the market today. In fact, many experts have already perceived a future where Ethereum has overtaken Bitcoin in the cryptocurrency industry. Altcoins’ design is purposefully to improve upon the weaknesses of Bitcoin given the fact that they came after through versions of improved technology.
As a matter of fact, altcoins have a higher rate of survivability within the market given a chance that there is quite a number to choose from. The future offers a high level of predictability where altcoins will explode in terms of prices and value. This considers a look into their past levels of applicability, sustainability, and scalability in blockchain technology.
When considering which cryptocurrency to invest in other than Bitcoin, then a great consideration must be given to the top ten leading altcoins. Ethereum takes a lead, closely followed by Ripple which is the most popular cryptocurrency offering a great rebound potential. Then we have BNB, SOL, Apecoin, ADA, MANA, Shiba Inu, dogecoin, and Litecoin.
The future of Altcoins
With a close look into diversifying in the cryptocurrency market, the prices of altcoins are less expensive than it is with Bitcoin. Altcoins form the bigger part of the cryptocurrency market and every investor needs an understanding of how they work. It is not only to understand their operations but also which one would be the right one to put your money in.
You should have great considerations to invest in altcoins if you must cryptocurrency a greater part of your portfolio. The future of altcoins has already been told since most of these altcoins are key ambitious projects with diversified uses than Bitcoin. Bitcoin only stands out as a store of value. Altcoins are gaining popularity and are foreseeing a larger price increase if they catch on.
If you are a pioneer cryptocurrency investor willing to do your homework, altcoins could give you very great returns in the future. But I clearly find no reason to fumble since some of these altcoins like Ethereum just compliment the giant. ETH builds various cryptocurrency platforms and also builds on other currencies.