Altcoins vs. Bitcoin: Investment Strategies

If there is anything that has been able to transform our financial world around positively, I will say it is the cryptocurrency space which has been able to make use of its financial power to offer certain innovations which are pretty new to what we have always been used to. Since the world of crypto was launched in the year 2008 where bitcoin was first of all created, since then, it has been able to continue growing and growing and we are now 15 years later, no doubt the influence is evident to see all.

But one of the misconceptions years back is whenever there is a mention of the crypto space, we just limit it to the bitcoin aspect. Yes bitcoin is part of the crypto space but not limited to it alone as we have other crypto tokens called the Altcoins. Most of the time, investors try to explore between the bitcoin choice of investment or the Altcoins choice of investment to know that which is better for investment.

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There is a high need for us to understand how both bitcoin and Altcoins works. Bitcoin been regarded as the gaunt of the crypto space is known as the store of value. Altcoins in other hands involve other choice of crypto like the Ethereum, Tron, Solana and many more lot of projects of crypto tokens.

Talking about investment strategies for both. There are a whole lot of them and sometimes investors try to explore to know which one best work for them. There is the investment strategy called Holding which involved long term based. In this aspect, you buy a particular crypto token and hold it for a long period of time before it appreciate in value.

There is also the aspect of diversification. Many of us are also familiar with this one. There is a popular saying that you should not put all your egg in one basket and so that is just what people make use of. In this aspect, you tried to spread your investment capital to other crypto tokens in order to mitigate risks and to avoid putting all your eggs in one basket.

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Then the last one I will like to talk about is the aspect of staking and yield farming. This is popularly common in Decentralised Finance system whereby a certain percentage of the token is been locked and subsequently income is been generated from it and later add up at the end of the day. All these are forms and strategies of investment which investors try to explore based on their own preferences and they can use it either on bitcoin or on Altcoins.