November 27, 2020

Cryptheory

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Bitcoin, Altcoins – what is a more sensible investment for 2020?

2 min read
Bitcoin, Altcoins - what is a more sensible investment for 2020?

Bull sentiment is back and traders are thinking how to make good use of their finances. So most investors wonder which cryptocurrency will have the greatest return. Let’s take a look at all the pros and cons of the Altcoins against Bitcoin together.

 

Security in the arms of Bitcoins

 

Bitcoins are the most decentralized project, with the highest number of users and the best intelligence in the field of computer science, which is currently working to develop its network. It has the greatest network effect, the most supportive infrastructure built around it, and the best compromises for independence. Perhaps most important for traders is that Bitcoin also has the largest liquidity and the most secure network.

 

What the Altcoins can offer

 

Altcoins, on the other hand, are usually much more volatile and risky. They are not as secure, have less liquidity and can be attacked more easily because they have a lower hashrate or are less secure on the basis of PoS consensus. Each altcoin should be judged on a case-by-case basis and always thoroughly studied.

 

Well-known altcoins like Bitcoin Cash or Ethereum also have a good infrastructure. For example, DeFi already has a billion dollars of locked-up funds on ETH. As already mentioned, each of these projects must be examined individually. You can’t throw everything into the same bag.

 

Altcoins offer high volatility

 

Many altcoin traders like the added volatility because they offer much more profit. Most altcoins rise as the bitcoin rises, sometimes much more than the BTC itself, but the same goes the other way if the BTC starts to fall.

 

Everything has its pros and cons

 

During 2017, some merchants became millionaires from a super small altcoin who suddenly gained a lot of interest because of a partnership or a new function. Regardless, most Altcoins lost more than 90% of their value during the bear market and some projects died completely.

 

Bitcoin dropped dramatically and lost more than 80% of its price several times, but also rose from $ 0.06 to a historical high of $ 19,891, a profit of 33,115,566.66%. Due to its limited supply and consensual rules, it is an investment with almost unlimited growth potential.

 

Summary

 

By comparison, Bitcoin is the winner for the 2020 investment, especially in terms of security and stability. It is the original cryptocurrency and is constantly leading the development of blockchain through the BIP process. Altcoins, on the other hand, can make you more money in less time, but they are much more risky, and you can lose everything in the moment. What you choose is up to you.

My opinion? Check fundaments and follow them.

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