Future of Altcoin Investments: Good Time to Invest in Altcoins?

Is Now a Good Time to Invest in Altcoins in the Crypto Bull Run?

All cryptocurrencies besides Bitcoin are called altcoins. Since most cryptocurrencies are split from Bitcoin and Ethereum (ETH), some consider altcoins to be all cryptocurrencies other than those two. Some cryptocurrencies employ various consensus mechanisms to validate transactions, open new blocks, or differentiate themselves from Bitcoin and Ethereum by adding features. Most altcoins are created by developers with various goals. Learn about cryptocurrencies and how they differ from Bitcoin.

Key Highlights

  • Altcoin means all cryptocurrencies other than Bitcoin (and, for some people, Ethereum).

  • The market is believed to be flooded with tens of thousands of altcoins.

  • Alternative coins (Alts) are divided into several groups, depending on the type of their developers.

  • It is impossible to predict the future of altcoins; nonetheless, if the blockchain on which they were created continues to be used and developed, the altcoins will still be there.

Is This the Best Time to Invest in Altcoins?

Not only did Bitcoin soar to a new all-time high, but altcoins finally started to outperform Bitcoin as well. The parade seems to be going on in the crypto market as the baton has now shifted from Bitcoin to other minuscule but promising cryptocurrencies. That's very bullish. This implies some altcoins may fly up and over in the next few months.

Consider This: Bitcoin surpassed its 2021 highs this past week, while the majority of the other major altcoins stay far from their 2021 highs. Ethereum is still down 30% from its record high in 2021. Tron and Binance are now approximately 40% below their 2021 peak prices. 

Solana is still down about 50% from its all-time high in 2021. Also, a Polygon has fallen 65% from its 2021 high. Both Uni and Avax are 70% from their 2021 highs. Finally, we have Dogecoin, XRP, and Litecoin, which are all 80% of their ATHs.

In general, altcoins have a long way ahead before they touch their 2021 all-time highs, even though Bitcoin made such a move this past week. It becomes logical that in the last half of this Bitcoin blockchain cycle, altcoins will continue to grow and make an all-time high as well.

Therefore, some altcoins are undoubtedly capable of reaching new heights this year. That's the base case scenario. Altcoins are at the beginning of a revolutionary cycle that will continue to grow over the next few months. This is the main reason you should go on a coin-buying spree nowadays. Altcoins are skyrocketing at the moment.

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What Does the Future Hold for Altcoin Investments?

Conversations about the future of altcoins and cryptocurrencies had an analogy with the federally issued dollar in the 19th century. Several kinds of local currencies were used in the United States. They were all very different and were supported by different types of instruments.

Local banks also issued their currencies; sometimes, the asset backing could be imaginary. Such a multiplicity of currencies and financial instruments run along the lines of what is currently being done in the altcoin arena. Undoubtedly, there are so many altcoins in the markets right now that each coin claims to do something different.

The situation in the altcoin markets is likely to keep going in the same way they are, with multiple cryptocurrencies in existence, within the near future. 

However, it is also likely that the majority of the tens of thousands of altcoins being traded on crypto markets will not make it. The altcoins market will most probably lead to the coin market consisting of many altcoins – like the ones with better utility, a robust use case, and a clear blockchain application, which will have prominence in the markets.

Consequently, if you want to be more diversified in the cryptocurrency market, altcoins can be a good option since they are cheaper than Bitcoin. Volatility, however, is a major drawback of cryptocurrency. Regardless of the type of coin one invests in, the cryptocurrency market is young and, thus, prone to sudden changes. Cryptocurrency is still working its way through the global economy, so all cryptocurrencies should be treated carefully.

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Which Altcoin Has the Highest Potential in the Crypto Bull Run?

The top 5 altcoins which have the most potential are:

  • Ethereum (ETH) with a market cap of $459.16 billion

  • Solana (SOL) with a market cap of $58.39 billion

  • Cosmos (ATOM-USD) with a market cap of $4.85 billion

  • Kaspa (KAS-USD) with a market cap of $3.48 billion

  • Stellar (XLM-USD) with a market cap of $3.92 billion

The Bottom Line

Altcoins refer to any cryptocurrency other than Bitcoin and Ethereum. There exist thousands of altcoins, so it isn't very easy to choose between genuine ones and those that are not. Ultimately, one should have a careful look at the documentation of the cryptocurrency they are interested in. 

If there is a reason why the blockchain and tokens are needed, they are worth watching, but if not, study other coins or investments. If you are uncertain, talk to a financial advisor who is well-informed about cryptocurrencies, and you can learn more about them as well.


Is it worth investing in altcoins?

Even though "more stable" cryptocurrencies like Ethereum might seem less risky, the guarantee that they will give higher returns is something that can't be promised. Before investing in altcoins, particularly the highly volatile ones, users should thoroughly research and invest only what they can bear to lose.

Should I invest in Bitcoin or Altcoins – which is the better option?

Whether bitcoin or altcoin is the right cryptocurrency for an investor depends on whether his finances are better or worse, his investment goals, risk tolerance, and beliefs. Before investing in cryptocurrency, it is better to consult a professional financial advisor to properly guide you on what to do, before investing.

Which altcoin will explode in 2024?

Solana has seen a jump of about 16.60% in the last seven days. On March 4, 2024, it experienced a surge of 7% within 24 hours, surpassing the BNB coin and moving higher in the top five cryptocurrencies ranking.

Do altcoins soar after Bitcoin?

Consequently, after Bitcoin has reached a top or a resistance level, the prices may consolidate or retrace, and this is when the altcoins may go parabolic as traders take profits from Bitcoin and move them to altcoins.

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Noah Willaims 14 Mar, 2024


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