Bitcoin vs Altcoin: Where to Invest? – Guide For Dummies – Knowing where to invest your money is more important than investing it. Bitcoin is one of the famous cryptocurrency which most of them have heard about.
Apart from Bitcoin, you can also invest in alternative coins such as Litecoin, Feathercoin, Dogecoin, Novacoin, Ethereum, Factom, and Ripple, etc.
Altcoin uses blockchain technology and solves a lot of problems faced in the real world. For instance, you can read an interesting cryptocurrency exchange use to show the value of Altcoin in Bitcoin, but the actual value of them happens in dollars.
So if you buy a Bitcoin at $2700 and invest it in an Altcoin, you’ll get Altcoin worth $2700 and not worth 1 BTC. If in the future even if the value of Bitcoin falls or increases, you don’t have to worry, because the actual value of Altcoin happens in dollars.
To get an Altcoin, you should first buy a Bitcoin and then get the BTC converted into an Altcoin of your choice. Since we use Bitcoins to buy Altcoin, a lot of people are worried, what if BTC falls down tomorrow? Will the value of the coins also fall? The answer to such questions is “NO”. The price of BTC won’t affect the value of the altcoins, it is because BTC is just a medium of purchase, while the real value is in USD.
Bitcoin vs Altcoin
Note: When you invest in Cryptocurrencies, always invest the amount you are ready to lose. There is a huge fluctuation on a daily basis. One day you might be the King and the other day you won’t be near to a beggar, yes that happens. Bitcoin fell from $34 to $1 to reach $100 in 2011. You must invest only if you are ready to lose the money.
On the other hand, you can make 2 times, 5 times, 100 times profit for the risk you bear. Coming to Bitcoin vs Altcoin, Investing in Bitcoin is a safer option, but the growth in Altcoin is tremendous and quick.
There are many Altcoins which grew around 1000% in 8 months. With such profit, risk follows. While Altcoin is riskier when compared to Bitcoin. Bitcoin has a stable growth & drop, but Altcoin growth and drop are exponential.
Real Life Instance-Based on Statistics
Just for an instance, the current value of Bitcoin is $2700 in July 2017, after investing for a year the value of Bitcoin may increase up to $10000 (which is just 400%). While the value of Ethereum (Altcoin) was just $10 in Feb 2017 and has reached a whopping $380 in June 2017 (which is 3500%).
In the case of Altcoin, the wait time would be less and there are chances of higher profits. After reaching the heights at $380, ETH as on 30th July 2017 is $195 (which is falling by 50%), such falls won’t be seen with BTC. If you had invested in Bitcoins then it would give good returns but after some waiting. But other cryptocurrencies can find better growth in a short duration. When you invest in other cryptocurrency you can prefer more quantity of it at a lesser price.
Our Catch on Bitcoin vs Altcoin Investment
For example, For $2500 you can purchase 1 Bitcoin, while for $2500 you invest in 12 Ethereum. If the price of 1 Ethereum hikes by $25 dollars you would be making $250 easily. If you invest in other cryptocurrency the profit margin can be higher when compared to Bitcoin.
An Altcoin costing $2 may rise by just $1 in a week, imagine you had a quantity of 10000, you would be making such a huge profit.
Bonus Tip: How to Make Money when Bitcoin Price Drops.
While you invest $10k on Bitcoin it would rise by $300 after a year, BTC has a better stability rate when compared to other cryptocurrencies. On BTC you can invest and leave it for a while, which does not require day to day monitoring while the value of Altcoin change every single hour, day. The market may go upside down in just a week. You need to analyze very well in you are going to invest in Altcoin. While waiting with patience also counts many a time, most of the instance the price picks up and you may be profitable.
Whichever cryptocurrency you invest there is risk involved. You can make an analysis looking at the growth and fall graph which would help you predict the best time for investment or encashment. This analysis from your side matters a lot but in the end, either you would make a hefty benefit or end up losing everything. Apart from this luck should be on your side, even great economists and analysts go wrong sometimes.
You need to plan and decide properly before you go for such investments. As I said earlier you can invest in Bitcoin which is less risky and long waiting time, or you can prefer Altcoin with high risks, less waiting time, and high profits. Stocks, Shares, Cryptocurrencies, margin trading are the best ways to make a profit but it’s not guaranteed every time. If you are ready to face losses or can recover back then invest in them. Else find a better way of investment such as mutual funds, fixed deposits, etc.