Bitcoin or shitcoins? What to buy?
Heading to the market? My bad, that’s like a daily routine. Putting it right; what are you looking to buy today? Bitcoin or shitcoin?… sorry, altcoins. Well, whichever way you put it, you’ll still get to see a point. For someone delving into the crypto space, the popular disparity between bitcoin and altcoins could create a dilemma. Stick to the most popular cryptocurrency? Or surf the market for an alternative?
If you’re a pro in the crypto space, then you will surely have lesser troubles answering this, well, if you’re a pro, you are probably not reading this right now. Bitcoin maximalist describes bitcoin as ‘the safe word’ and occasionally go a mile further to talk down on other crypto assets. ‘Shitcoins’! Well, there is a reason for this and many times, they are right.
Certain toxic behaviors exhibited by altcoin projects have won them the popular name, but despite some altcoin projects displaying condemnable attitudes such as exit scams, market manipulation and propaganda, inferior/infeasible solutions and price volatility resulting from poor tokenomics, many other altcoin projects have developed advanced solutions fit for global adoption with workable prototypes which are already being used in small scale and being constantly improved for mainstream adoption. These altcoins have shown professionalism and a clear image of what the crypto space represents.
That’s some long story by the way; crypto traders who purchase cryptocurrencies for a short term holding and a goal to sell off once they make satisfactory gains has very little to worry about as regards this. Long term investors usually have more to worry about as they expect higher returns as a reward for their persistence, but buying into the wrong project casts a very dark shade on this goal.
While some investors prefer the safest investment, some others will go with a more volatile asset — no risk, no reward; after all cryptocurrency investment is a game of luck. But while this is true to an extent, considering safety a little bit is also important.
Relative to other cryptocurrencies, bitcoin is a pretty more stable asset possessing more inertia than other projects, slow to price crash, but that 70% 24hr gain is an illusion for any bitcoin holder…stablecoins are out of this comparison. Who considers stablecoins an investment by the way? Uhm, I used to…
Scams pump more, I bet you’ve heard this before. This phrase is popularly used to describe altcoins’ tendency to pull off an impressive price jerk over a short period of time. Sometimes this is actually due to price manipulations by exchanges and project teams, but this could also be genuine and due to a project’s breakthrough in technology and/or marketing.
Putting it all together, deciding on what to buy first requires a clear understanding of what you expect from the market. Unfortunately, the market is not a perfect place and the Cinderella story seldom happens here.
A more stable asset is a safer investment, outrageous loss of value (percentage) is a less frequent story for such asset, however, massive gains in a short period of time is also not a popular tale here. If this is your preference, then you will be better off getting yourself some bitcoins.
But, for someone willing to swim the tides, looking for the next 10x gaining asset, then you’re surely not going to get that with bitcoins, at least not anytime soon. But while this is feasible with altcoins, a 90% value loss is also not a new story in this street. It’s huge gains, huge loss…huge risk to be plain.
You might decide to create a balance, a little bit of both; some bitcoins, some altcoins. Well, clever! Diversification when done right helps to minimize loss, even though it may reduce the gains as the case may be. But always remember to do your own research and trust your decisions.