The Increasing Interest of Investors in Altcoins
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Volatility is considered the most variable feature of the bitcoin market. This term has not just affected bitcoin but the entire crypto class. Every cryptocurrency fear volatility similarly to a stock trader fears negative trends. The major difference between a stock and a digital market is of changing circumstances. Whereas the physical stock market ends its day work in the evening, the digital trade keeps on going for 24 hours. If we compare the market conditions of the present day to the previous set, we will see that bitcoin is not doing so well. If you want to know more about bitcoin, then you can click on the below image link:
The image of bitcoin has flipped over and the nature is also reversed. Though the associations are still in millions that charm of bitcoin is gone, at least for now. As a result, investors are searching for other currencies and as a result, are getting more interested in altcoins. In this article, we will study the increased interest of these investors in Altcoins.
Altcoin- An introduction
When we talk about bitcoin, the sole currency that comes into our mind is the crypto coin itself. This is a discrete form of cryptocurrency that is famous right from its launch. Indifferent from bitcoin, an altcoin cannot be summed up in a single entity. The word Altcoin is wide and includes all the cryptocurrencies apart from bitcoin. In a group, if bitcoin is not present, that group can be designated as a group of altcoins. Usually, two currencies are kept out of the major altcoin group. These currencies are bitcoin and ethereum. These currencies are none other than number one and number two among the top cryptocurrencies of the globe.
The reason of switch from bitcoin
Bitcoin is no doubt the biggest cryptocurrency in the entire globe. The volume of transactions is high and the extent of reach is also quite high in the case of bitcoin. But, studies have proved that bitcoin is not now as safe as it was for investors before. No, this is not about general security but this is for the dominance in the market. Studies show that within a short span of merely 2 months, bitcoin has lost around 7% of its market dominion, which is noteworthy. During the lockdown period, when the entire stock market and traditional trading were off, this was the only option that was opened to the whole world. The number of people who joined crypto platforms during the Covid pandemic lockdown made millions and enjoyed the phase fully. But, now as the competitive market has opened and people are more interested in other currencies as well, the shift is noteworthy.
Benefits of using Altcoin
- The foremost benefit of using an altcoin is the security of its funds. Volatility has increased cautiousness among its investors and as a result people usually prefer those coins which are least volatile.
- The altcoin growth can be seen as more positive as compared to the bitcoin market. The growth is exponential if everything went well but in the digital market containing bitcoin, even the simple growth curve is rarely seen nowadays.
- Altcoins are designed to be used for some specific purpose and find their way into a particular subject. As a result, more growth-oriented investments can be made.
- The risk of losses is diminished in the case of altcoins as compared to bitcoin.
Future of altcoin
Just like bitcoin, the factor of volatility is equally applicable to the altcoin market. Though the risk factor is less in the end it is the crypto that is playing role in both altcoins as well as bitcoin. As of now, it can be estimated that the future of altcoin is bright and is going to shine with much glitter in the coming future dates.