Bitcoin stays decisively the world’s most popular cryptocurrency for now. With the tremendous market capitalization of $114,373,286,279, according to CoinMarketCap, and the significant circulating supply of 17,325,225 BTC. Bitcoin is for many the crypto itself, representing all the digital assets at one.
On the other hand, Altcoins gather more and more acclaim in the crypto field. For many traders, small and newly launched coins are the answer to a smart investment decision since they are still cheap and easier to buy and trade. But, Sweet Crypto Jesus, there are already more than two thousand cryptocurrencies out there, how to choose which ones are worth it?
CryptoFrog made a small recap of the current crypto situation for you. Our analysis includes several factors which would help to make the right financial decision.
- Volatility rate.
First and before anything, you need to think of volatility. It is true for all currencies, not only for cryptos but the latter experience extreme fluctuations in price. If you want to buy a crypto, take a look at its chart – how the price moves, are there vast differences, for what periods of time?
Read some smart people’s opinions about cryptos’ future. Some financial and IT experts say that Bitcoin has issues in its protocol and cannot execute so fast transactions, as the Ethereum for instance. This makes bulls to bet on future Atcoins, which would be more refined, better developed and more secure. Contrarily, the common opinion seems to support the Bitcoin the most – it is the first one to trigger the crypto boom, still most used and famous, and according to many, it is here to stay. All in all, predictions go from one side to the other, saying that soon all Altcoins will die and only Bitcoin will stay, and to the death of the Bitcoin for the other cryptos’ sustainability.
In economic, the main rule that governs money circulation is demand + supply. There need to be a certain supply, but if a currency is not demanded by society, it is useless. Which means, that an endless supply of a coin would kill the market’s rate of interest and it would become too cheap. Watch out for that with the newly launched tokens.
Do not keep all your eggs in one basket! Or to put it more sophisticated: diversify your portfolio. The best idea of all is to invest both in Bitcoins and Altcoins, in a certain proportion. Many traders say they like to divide their deposits equally, 50% in Bitcoin and 50% in Altcoins. Others do not like risks and accumulate BTC primarily, as 70% of Bitcoins to 30% of Altcoins. You choose how to arrange your budget but above all, be smart and do a research before putting your money anywhere!