The crypto market has been trembling since Bitcoin Halving. A settlement was anticipated when applications for Spot Bitcoin ETF were approved. For a moment, Bitcoin did rise to a new ATH, but has now reverted to lower lows. Bitcoin is currently trading at a value of less than $60,000, and ETH is struggling to test the resistance at $3,200. Nevertheless, the condition of BTC has paved the way for altcoins to emerge and make a name for themselves. But are altcoins truly the alternatives that one should consider?
Altcoin vs Bitcoin
Bitcoin is precisely what started the trend of a decentralized digital currency. The objective was to boost financial inclusion with the elimination of a third party. BTC has managed to do that while also establishing itself as the most reliable crypto across the globe. Simply put, the word crypto is used, and many people know Bitcoin is the only token in the market.
Also working wonders for Bitcoin is the feature of the store of value. It is now in competition with Gold, except it sports limited supply and scarcity in the ecosystem. These factors have aligned with the ethos of Bitcoin, helping BTC to gain value on the trading board.
Altcoins present a reasonable case, too. For starters, they have the potential to generate better returns on investment. Take MAGA VP as an example. Even though it is a new token in the market, MVP has been able to generate a 300% rise in April alone. MAGA VP has rather carried forward that trend to the end of April. It is listed at $0.1137, with a Market Cap of approximately $6 million. Chances are that the token will soon test the value of $0.5, probably by the end of May 2024.
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Prevailing altseason makes a compelling case for the segment. It is roughly after 7 years that altcoins have opened the door to welcome traders as more of them begin to explore and diversify their options in the market. Bitcoin ETF and Bitcoin Halving have fueled price rises and generated interest in cryptocurrencies. The majority of the new traders are aiming to start small, and altcoins make up for the best choice with lower risk and less volatility.
Other altcoins that are performing well in the market are doing so by enabling traders to diversify their portfolios beyond Bitcoin. Also, they are aiming to expand their association to deliver a higher utility.
Bitcoin comes with limited utilities, while altcoins have the edge in the category. The Market Cap of Bitcoin certainly makes the best, roughly at $1,238.72 billion, against the market of altcoins at $962.32 billion. However, that gap is likely to be bridged as the larger section of the crypto community begins diversification of their holdings.
Conclusion
Altcoins and Bitcoin have their pros and cons, without any doubt. Everything ultimately comes down to the level of risk that a trader is willing to take. It has to be backed by research and risk assessment. Only then is it recommended that funds be allocated to Bitcoin and/or Altcoins.
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