If you even take the slightest bit of interest in crypto-currency, I am sure you have heard of bitcoins. But have you heard of altcoins? If you haven’t, then read this article to the end as I tell you everything you need to know about altcoins, including the pros of investing in them.
As there are several cryptocurrencies available at the exchanges, it can be difficult for a new investor to make the right choice. Hence, invest only the amount that you are willing to lose.
The thing to note here is that there’s no such thing as a ‘good cryptocurrency’ or a bad cryptocurrency. What you invest in solely depends on you and your goals.
However, staying informed about all the cryptocurrencies is a must if you intend on investing in them. This not only saves your time but also makes you aware of Cryptocurrency’s pros and cons.
Investment Opportunities in Galore
The fact that cryptocurrencies have been so successful is because of the blockchain system, as it has proved that it can be relied on and limited the creation of bitcoins. If people could mine unlimited bitcoins, inflation would take place as it does in the fiat currency.
People are already fed up with the existing financial system. That is why people are turning towards cryptocurrency as they are viewing it as a lucrative investment option. In December 2017, bitcoins’ value reached its peak; it increased a lot from its original value.
You can experience the best trading experience try bitcoin loophole today. Fiat currencies can never increase this much. This is why cryptocurrency investment opportunities are in galore.
What Are Altcoins?
Bitcoin is widely known as the ‘poster child’ of cryptocurrency. Altcoins are great alternatives to Bitcoins. The world alt is the free three letters of the word alternative, which means another choice. The thing to note here is that altcoins are formed through bitcoins, and they provide the same functionality.
As of 2020, there are over 5000 altcoins in the cryptocurrency blockchain. All the cryptocurrencies except bitcoins are regarded as altcoins. Though Altcoins are not famous enough compared to Bitcoin, their value cannot be underestimated.
I admit that the value of bitcoins surpasses the value of altcoins. But you must understand that the higher the value, the higher the rate of volatility, and furthermore, it’s quite difficult for people with normal jobs to invest in Bitcoin. So, to them, investing in altcoins becomes more lucrative. Some major altcoins and respective market capitals are listed below.
- Bitcoin Cash – $7.7B
- XRP – $18B
- Ethereum – $21B
- Litecoin – $3.1B
- Dash – $1.3B
- Stellar Lumens – $4.5B
- EOS – $4.9B
Pros of Investing in Altcoins
As I mentioned previously, Altcoins are just alternatives to Bitcoins, but the way they function is the same. All cryptocurrencies function the same way.
- Accessible to normal people: I love the most about bitcoins because they are quite cheaper than bitcoins, and a normal salaried person can think of investing in them. But when it comes to bitcoins, only people with huge capital can invest in them. Salaried people can’t even think of investing in Bitcoins.
- Less Volatility: As the market capitalization of bitcoins surpasses that of altcoins, the volatility also increases. During the COVID-19 pandemic lockdown, Bitcoins’ value came down a lot, which made the investors very nervous. Some investors even started selling.
The volatility of altcoins is relatively less, and an investor can have a good night’s sleep after investing in them
As the Bitcoins market is very volatile, the value of Bitcoin can fall anytime, but if you invest in altcoins, you will be relatively safer. It’s worth noting that Bitcoin may have the highest market capital value, but most of the crypto transactions are made using altcoins such as Ethereum. If you are a new investor, I highly suggest you start investing in altcoins.