Bitcoin vs Altcoins is the greatest battle of all time. In one corner we have Bitcoin with a market cap of $120 billion. In the opposite corner are Altcoins, a worthy contender with plenty of potential. Who will emerge victorious?
In the beginning, Bitcoin was the sole digital currency in the crypto world. But soon after investors started realising the great potential of digital money, altcoins or alternative coins were born. Ever since, it has been a constant battle for investors. Should they invest in Bitcoin or altcoins? When is the best time to buy Bitcoin and when is the best time to buy altcoins? Many investors opt for Bitcoin only and do not pay much attention to altcoins, but what are they missing out?
A general rule of thumb is that when the price of Bitcoin rises, the price of altcoins will generally fall and vice versa. To help you make the decision on which one is best to invest in – Bitcoin or altcoins – we must first take a look at what makes each unique and what are the pros and cons of investing in either.
What is Bitcoin?
Bitcoin is a digital currency that was created by a man named Satoshi Nakamoto in 2009. Till this day, no one knows the true identity of the man who is responsible for the phenomenon of cryptocurrencies, but oh boy, we are glad he did so! Bitcoin is known as the gold standard of the cryptocurrency world and is unique in the sense that it is decentralized. This means that no bank, government or institution regulates it and there is no middle man to take your hard-earned money away from you. Another great feature of Bitcoin is the fact that its ledger is anonymous. Bitcoin is built on a blockchain technology that allows it to be anonymous and gives its holders the freedom to trade it or buy and sell goods and services. Bitcoin can be ‘mined,’ which is basically a way of saying that a machine uses a specific algorithm to write a code that gets you Bitcoin. There are even people who have mining farms with hundreds of such machines making Bitcoin on a daily basis.
What is Altcoin?
Altcoins were made to support Bitcoin and provide investors with an alternative after Bitcoin had been introduced to the market. They aim to improve the Bitcoin system in various ways and get the competitive edge. There are literally thousands of altcoins that you can choose to invest in. They are similar to Bitcoin in the sense that they are also built on blockchain, you can mine or trade them on exchanges, and use them to conduct business or pay for goods and services. It should be noted that it is a lot easier to mine altcoins than it is to mine Bitcoin due to the staggering demand for Bitcoin. The best altcoins on the market at the moment include Litecoin, Feathercoin, Dogecoin, Verge, Monero, Ripple, Neo, and others.
Check out the latest prices of Bitcoin and altcoins here.
Bitcoin vs Altcoins – Where to put your money?
Investing in cryptocurrencies can be risky, as is the case when investing in the stock market or through a bank. Do not think that this is a “get rich quick” scheme. This industry requires patience, actually lots of it, and only then will you reap the rewards. The industry is still extremely volatile to bad and good news, and prices can drastically fluctuate from one day to the next. At the end of the day, cryptocurrencies provide a wonderful opportunity for investors who are looking to make their money increase.
So, which one should you invest in? As previously stated, Bitcoin is the king of the cryptocurrency world and, therefore, is the safer option for investment. But altcoins have become extremely popular amongst day traders and, if chosen wisely, can grow with up to 600% in a day. Altcoins are riskier since any movements in their prices are directly linked to Bitcoin activities.
Bitcoin is obviously a lot more expensive than altcoins, but altcoins generally grow faster than the king of crypto. For example, you can buy some Bitcoin for $3,000, but if you take that same amount and buy Verge, should the price increase by 70%, you would have seen a greater return on your investment.
Fortunately, there are tools on the Internet to help you analyze the charts of altcoins and predict your next move. You can interact with various communities over social networks to stay up to date about which altcoins are said to make the next big move. It’s almost like playing chess.
Hot altcoins to invest in
Ripple – Ripple (XRP) was the first open transaction network and, regardless of the initial faults in the system, can secure a very prosperous future for holders. Ripple is the next big thing to rock the cryptocurrency world and has been called ‘the sleeping giant.’ One Ripple costs about $0.20.
Litecoin – Litecoin (LTC) was invented in 2011 by Charlie Lee, a former employee of Google and is aimed at faster transactions than Bitcoin. Litecoin’s total supply is 84 million as opposed to Bitcoin’s 21 million. The only downside of Litecoin is that it is prone to dramatic price swings. In the past, it has risen to $40 and then went back to $1.4. If you’re looking for high risk and quick gains, Litecoin may be a good option for you. The current price of Litecoin is $55.28.
Ethereum – Ethereum is a great investment because of its founder, Vitalik Buterin. Ever since he introduced Ethereum, every other project he has got involved with has turned to gold. Buterin is a superstar in the cryptocurrency world, and anything that has his name on will surely be an excellent investment! Ethereum is unique as it has its own blockchain, and various other altcoins are built on this blockchain that features smart contracts. The current price of Ethereum is $298. 68.
In conclusion, do your research before investing in any altcoins to avoid unnecessary risk. Bitcoin is less risky, but you may have to wait longer for return on your investment than with altcoins. In any way, no matter what you choose, good luck with investing!