Bitcoin closed the month of July with gains of more than 40% from its lowest…
Should you invest in Bitcoin or AltCoins?
With so many different cryptocurrencies available for purchase, how you make the right decision to invest in the crypto market? Actually, there is no right or wrong choice in the cryptocurrency market, it all depends on the goals and areas of application.
Altcoins are alternative cryptocurrencies, and the industry is full of different coins, and it seems that every day we have new alternative crypto exploding on the scene that can change the cryptocurrency landscape, so knowing how to invest your money in this market can save your nerves and time, as you can make an informed decision and reduce your investment risk.
Why are there so many cryptocurrencies?
There has been a lot of talk about Bitcoin and other cryptocurrencies over the past two years or so which has led to the proliferation of mobile applications for trading digital currencies and the increase in the demand for these currencies. The financial innovation of decentralized digital currencies based on blockchain is taking the world on a new financial path, Especially as more and more people are hungry for an alternative to the current monetary system, which is the cryptocurrency market.
It’s an exciting time in human history, for the first time ever, we have an asset class that’s completely resistant to censorship and offers real and unconquerable scarcity, these qualities in the monetary system are very attractive.
Invest in Bitcoin offers all of the above and more, however, in the years since its launch, there have been many new cryptocurrencies seeking to improve upon the original design. These altcoins may seem alluring from an investment point of view, and many of them can be really innovative for different industries.
There is no denying the fact that Bitcoin is the most popular and highest-priced digital currency today, and the original cryptocurrency initially created and released in 2009, introduced blockchain technology and proof-of-work to the world.
It has been on top throughout its history, if you want to invest in the financial markets in the future, you should probably buy bitcoin after that, as it has all the qualities that make money viable.
It has a known volume of money supply (a true rarity), which is why its price is always on the rise, it also does not need to ask permission from any government or banker to make a transaction.
This coin mining process is an integral part of its existence, miners find new bitcoins and trade them for rewards, moreover, they are responsible for validating transactions in its ledger.
While other cryptocurrencies may share some or all of these traits to varying degrees, nothing is as powerful as Bitcoin, it is powered by the largest network of computers and it is very expensive to attack.
Even the most powerful altcoin networks are nowhere near as strong as Bitcoin, and this makes settling these networks easier, in addition, they all have a spokesperson who is able to guide the development, and thus control the future of the cryptocurrency.
Finally, many people comment on the heavy energy consumption that coin mining requires, and see this as detrimental to the environment, and would prefer a more “greener” alternative.
Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.