Bitcoin vs Altcoins is the greatest fight for every time. On one hand, there is Bitcoin with a market cap of $120 billion. On another side are Altcoins, a worthy pretender with plenty of potentials. Who will get the victory in final?
From the very beginning, Bitcoin was the only one digital currency in the crypto world. But after that, the investors started realizing the great potential of digital money, and this way altcoins or alternative coins have appeared. From that time, the constant fight between the investors started. Where to invest in Bitcoin or altcoins? A lot of investors choose the Bitcoin-only and do not pay much attention to altcoins, but what are they lose?
The main rule is that when the price of Bitcoin rises, the price of altcoins will generally fall and vice versa. To make you the decision on which one is best to invest in – Bitcoin or altcoins – we must first look through at what makes each one unique and what are the pluses and minuses of investing in either.
What is Bitcoin?
Bitcoin is a digital currency which was created by a man named Satoshi Nakamoto in 2009. Until this day, no one knows about cryptocurrency nothing at all. Bitcoin is the gold standard of the cryptocurrency in the world and is unique in the sense that it is decentralized. This means that no bank, no government or institution that runs it and there is no middleman to take your money away from you. Another great part of Bitcoin is the fact that its ledger is anonymous. 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 to Bitcoin appearance. The goal is to improve the Bitcoin system in different 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 the blockchain, you can mine or trade them on exchanges, and use them to conduct business or pay for products and services.
So, where to put your money?
When you invest in cryptocurrencies, remember it can be risky. Do not think that this is the scheme for quick and light getting money on the internet. This "game" requires patience and carefulness. The industry is still extremely unstable with bad and good news, and prices can correlate from one day to another. At the end of the day, cryptocurrencies provide a wonderful possibility for investors who are looking to make their money increase.
So, which one should you invest in? As previously marked, Bitcoin is the king of the cryptocurrency world and, therefore, is the much 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.
Thank God, there are many of tools on the Internet to help you analyze the charts of altcoins and predict your next move. You can communicate with different communities over social networks to know more details about which altcoins are said to make the next big move. It’s almost like playing chess.
Bitcoin is less risky, but you should wait longer for return on your investment than with altcoins. Another way, no matter what you choose, good luck with investing.