Altcoins came after bitcoin and offered better transaction speed than bitcoin. So, we can say that many altcoins are better than bitcoin. Of course, being a newcomer to the world of cryptocurrency, you will certainly be making mistakes. But, the main idea should already be to learn quickly and trade better. So, check how is cryptocurrency used in the real world today to start your cryptocurrency journey with a safer approach.
So, what are altcoins?
An altcoin is a combination of “Alternative” and “Bitcoin.” So, altcoins are virtual coins that are alternatives to bitcoin. This concept of using altcoins and trading is becoming popular because of many reasons- one of the main reasons being the flexibility with which users can trade.
While it all depends on your portfolio and your decision to invest the right amount of currency to different altcoins, it has some cons. As altcoins are built after the bitcoin concept’s success, it usually comes with enhanced technicalities.
Here are some of the most critical pros and cons of altcoin trading platforms. We suggest you have a quick sight of different pros and cons so that it helps you decide the right coin to trade at different periods.
Pros or Advantages of Altcoins
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You get a plethora of choices to trade with your coin
600+ altcoins exist in the market today. So, you can imagine the choices you have that will make your trading better and instant. As an investor, you can quickly take a pic, and decide the returns, guess the acceptability of the coin in the market and predict the competitive advantages for the virtual currency you are trading with – all at once.
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Better and advanced than bitcoin
As the concept of altcoins came after bitcoin’s success, these virtual coins are advanced in features. Not only are the altcoins advanced and better in one way, but they also win the technicalities of being safer and better in transactional speeds than bitcoin.
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You get better stability with altcoins.
Price fluctuations are quite low in the case of altcoins. But, here, there is a catch! You know that whenever there is fluctuation in the price of bitcoin, there is automatically a change in the altcoins also. So, even if the instability is high, it may not always mean that your altcoin price will decrease. But, this change is clear- the flexibility you get to choose the different coins simultaneously, as per your portfolio.
So, we can say that trading and investing with altcoins is a safer and secure option as these can be considered stable.
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Accessibility is better than bitcoin.
Trading is super easy with altcoins. On the other hand, it may be confusing with bitcoins, if not at all times! For this reason, you find less competition for altcoins in the market. Also, we suggest checking the volume of who transacts with a particular altcoin because it gives you an overall idea of the time it may need to gain.
Cons of using altcoins
Indeed, know that bitcoin is dominating almost all of the market. Why? Undoubtedly, it has high promising value with a better Return on Investment (ROI). So, let’s run through some of the cons of using altcoins in today’s time.
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Oversupply of different altcoins
Now, you will find thousands of altcoins circulating in the market, which people are unaware of! For instance, before the name “Omnicron” hit the market, fewer people were aware of a cryptocurrency with a similar name. This fact makes it harder for people to diversify their portfolios.
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Vulnerability is more
There is a lack of acceptance from the people for most of the altcoins, Only the some which gain popularity are being traded with, which makes the altcoins vulnerable. For instance, the young investors or the people new to the crypto world will not be willing to accept the new altcoins, as it can be riskier.
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A loss can be costly
There is no kind of security if you lose. The crypto market will take all your money if you are not a seasoned trader, as guesswork is not something that should be your primary focus while trying to earn from cryptocurrency. Plus, the market cap value of altcoins is always lower than bitcoin, and you should be expecting lower returns.
Interesting Related Article: “Bitcoin or Altcoin: Which is better for investing?“