Investment in Altcoins and Bitcoin What you will get in a bull run
With a crypto bull market on the horizon, investors must carefully decide whether to bank on the stability of Bitcoin (BTC) or explore the wild west of altcoins. People with limited capital should think carefully before making a decision.
However, the Bitcoin community believes that the asset will grow indefinitely in each cycle. But can he manage that level of growth this time?
An effective crypto investment strategy requires a thorough understanding of key market conditions. The cost of missed opportunities and an investor's risk appetite, to name a few, must be considered before any investment.
The cost of a missed opportunity
The booming nature of the crypto market makes the cost of a missed opportunity a non-trivial risk. Should the assets be invested in BTC or altcoins, which are widely considered digital gold, with returns of 100% or more?
Read more: What are Altcoins? A guide to alternative cryptocurrencies
The value of missed opportunities becomes important when investors compare their gains from investment options. As time and capital are limited resources, they need to quickly identify trades that optimize their portfolios.
Making these decisions is not easy. Understanding that choosing one asset is inseparable from abandoning another is a fundamental aspect of investment decisions.
What about danger?
The cryptocurrency market, known for its high volatility, requires one to carefully assess risks. Bitcoin can be attractive to new investors in difficult markets due to its price stability.
Altcoins that accumulate in a bear market can offer a great opportunity for profit, but they present high volatility and, therefore, more risk. A good understanding of risk tolerance will help the investor make informed decisions.
Any altcoin investment should be guided by the value of the token as well as the progress of the related project. Bitcoin investments, on the other hand, are based on faith in the asset's potential, even during bear markets. During a bear, Bitcoin investors should adopt a passive attitude.
Investment strategy
A well-defined investment strategy should guide decision-making. Investors must ensure their time, goals and contingencies to deal with the complexities of the crypto market.
People who see long-term storage of value and inflation may want to invest in Bitcoin. People looking for short-term gains and a diversified portfolio can use selective altcoin investments. For those who want to watch the markets and constantly learn, it may be worth allocating more capital to altcoins.
What does the Altcoin market offer?
The various altcoin markets support rapid growth, and those who actively conduct market research should find coins that can generate high short-term profits that match their strategy. For those whose investment strategy is diversification, a more conservative strategy may be better. The exact division between Bitcoin and altcoins depends on risk tolerance, commitment, and the chosen strategy, but they should manage their Bitcoin holdings.
At the beginning of the year, Bitcoin gained more than 100%. These gains exceed the growth of the other nine top cryptocurrencies in a single year.
However, some altcoins are showing significant gain trends as evidenced by crossing the 50-week simple average (SMA) barrier. This booming momentum is good not only for them but also for other cryptocurrencies.
The current price actions mimic the movements seen at the end of 2016-2017. Price behavior indicates an early cycle that may occur in the next year. The chart suggests a strong and promising period for Bitcoin and altcoins in late 2020 with no apparent volatility.
Bitcoin investment seen by people who have invested in Bitcoin since last year has exceeded the profits of many professional investors. However, you can get better results by investing in the top 100 altcoins.
Read more: 11 Top Public Companies Investing in Cryptocurrency
Do you have anything to say about altcoin and Bitcoin investment potential or anything else on the next bull market? Please write to us or join the conversation on our Telegram channel. You can also find us on TikTok, Facebook or X (Twitter).
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with experts before making any decisions based on this content.
