Crypto Market Comparison: Bitcoin or Altcoin – Which is the Best Investment Choice?

The crypto market has been unstable since the Bitcoin halving. Expectations were high following the approval of Spot Bitcoin ETF applications. Bitcoin initially hit a new all-time high, but has since dipped to lower values, currently trading under $60,000. Meanwhile, ETH is struggling to surpass a resistance level at $3,200. This situation has allowed altcoins to gain prominence. But should you consider altcoins as a viable investment alternative?

Bitcoin vs Altcoin

Bitcoin was the pioneer of decentralized digital currency, aiming to increase financial access without the need for a third party. It has become the most trusted cryptocurrency worldwide. When people hear "crypto," they often associate it primarily with Bitcoin.

Bitcoin also offers a store of value and competes with gold, featuring limited supply and scarcity. These factors align with Bitcoin’s ethos, helping it rise in trading value.

Altcoins, on the other hand, offer potential for higher returns on investment. Take MAGA VP, a new token that experienced a 300% rise in April. As it closed the month, its value stood at $0.1137, with a market cap of around $6 million. It's likely that the token could reach $0.5 by the end of May 2024.

The ongoing altcoin season presents a strong case for investing in the segment. After seven years, altcoins are becoming popular as traders seek to explore and diversify their portfolios. Bitcoin ETF and Bitcoin halving have spurred price increases and sparked interest in cryptocurrencies. Many new traders are starting small, making altcoins an attractive option due to their lower risk and volatility.

Altcoins are also diversifying traders' portfolios beyond Bitcoin and aiming to provide higher utility. Although Bitcoin's market cap is the largest at roughly $1,238.72 billion, altcoins are catching up, with a market cap of $962.32 billion, as more of the crypto community diversifies their holdings.

Conclusion

Both altcoins and Bitcoin have advantages and disadvantages. The decision ultimately depends on the trader's risk tolerance and should be supported by thorough research and risk assessment. It's recommended to allocate funds carefully to either Bitcoin or altcoins.