Why invest in altcoin and not bitcoin?
Since bitcoin made its first appearance as the first ever cryptocurrency in 2009. it has been accepted by people and organization all over the world before all other crypto currencies, tokens came in. Those crypto currencies other than bitcoin is known as alternative coins (Altcoins) in short form used by institutional investors, crypto influencers all over the world.
These Crypto currencies are built for different purposes, though are classified in different categories like the stable coin, mining based, staking based and governance tokens. These will be explained in a different article so be sure you are following me and make sure you subscribe to get my stories delivered directly to your inbox when i post.
Now with all that been said a lot of people has been asking “what crypto currency should I invest my money in” Well I don’t give financial advice, but i know vividly that altcoins are good alternatives to cryptocurrency market investors interested in diversifying their portfolios. Though some, like Ethereum’s ether, are recognizable by name, a majority of the more than 10,000 altcoins out there still have yet to make a mark. Altcoins are representative of the potential for cryptocurrencies to reshape modern finance. But investors should do their research before investing in them. The risks associated with altcoins are similar or — in some cases — greater than those for Bitcoin investing.
I will add a link of an article written by my friend Ugwu Silas that gave in details HOW TO YOUR RESEARCH a very important topic in the crypto space.
Are Altcoins Good Investments?
Altcoins have many of the same investment risks associated with Bitcoin. In addition, many of the small altcoins are illiquid. But well-established altcoins, such as ether and XRP, are competitors of Bitcoin.
This article is written to tell you why its better to invest your money in alternative coins that could do 100 times its previous price when bought and not bitcoin that has already done over 1000 times since creation. I have few reasons why altcoin is a better investment over bitcoin;
- Unique Usecases: Most altcoin are believed to have unique usecases and utilities than btc, for example ethereum through its ground-breaking combination of features like smart contracts, Ethereum is used for a variety of innovative applications in finance, web browsing, gaming, advertising, identity management, and supply chain management which tends to be amazing most of these uses ain’t present in bitcoin because of these investors normally takes advantages of services that are rendered in the ethereum blockchain and not bitcoin blochain.
- Fast transaction and low fees: Most altcoins have faster transaction rate, While bitcoin’s high volatility, transaction times, and fees can cause a barrier for many customers that are not eager to risk spending more than they need to for small purchases, altcoins can provide cheaper and faster transactions.
- profitability: Investing in altcoin can give high returns than bitcoin in some cases, you should ask me why? let me give a past example about this; let say Investor A and B invested same amount of money $7200 on bitcoin and solana respectively as at october 2020 bitcoin was about $7200 and solana (sol) was $1.5. investor A decides to buy 1 bitcoin after his research B made up his mind to buy an altcoin solana (sol) at the current price he bought 4800 solana for $7200. As at the time i wrote this article bitcoin was $40,300 and solana is $102 now lets go with the current prices to calculate the current profit, since bitcoin is $40300, remember he bought 1 for $7200 with this his profit is $40,300-$7200(original investment)=$33100. So investor A is currently in $33100 profit. For Investor B since solana is currently $102, remember that he bought 4800 sol for $7200 so probably $102*4800=$489600, then $489600–7200(original investment)=$482,400. So investor B is currently in $482400 its actually a huge profits compared to bitcoin.
I said i was gonna share a link to Ugwu Silas article on how to do your research here is below;
read carefully to understand the concept.
Thanks for going through my article.
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