Alt season is a time when altcoins (alternative cryptocurrencies) show significant growth, sometimes even surpassing Bitcoin in terms of pace. But is it always more profitable to invest in altcoins, or should you stay in "digital gold"? Let's compare.
Bitcoin (BTC): stability and trust
Brand strength
Bitcoin is the most well-known and most expensive cryptocurrency. It is associated with stability, although its price can be a bit slow. BTC is often used as a "reserve currency" for crypto investors.Growth opportunities
During the high season the price$BTC grows more slowly, after which investors transfer funds to altcoins. This protest does not mean that Bitcoin is losing relevance. Its dominance occurs in different ways, depending on the state of events in the general crypto market.Risks
Bitcoin may be less profitable in the short term during the alt season, but it remains a more reliable option in the long term.
Altcoins: High Risk, High Rewards
Rapid growth
During the alt season, many altcoins are showing huge growth. For example, tokens like Arbitrum ($ARB ), dYdX ($DYDX ) and Immutable X ($IMX), are garnering significant attention for their innovations in Web3, NFTs, and DeFi.Variety of possibilities
Altcoins offer access to different sectors like decentralized finance, blockchain gaming, Ethereum scaling, etc. This gives investors the opportunity to choose projects that best suit their interests.Risks
Altcoins are more volatile than Bitcoin. Investing in them can bring both large profits and significant losses. In addition, not all altcoins survive the alt season successfully.
What to choose?
If you are looking for stability and plan to invest for the long term, Bitcoin is a solid option.
If you are willing to take the risk and want quick profits, altcoins may be a better choice during an altcoin crash.
Ideally, an investor's portfolio should hold both types of assets. Bitcoin can be the underlying asset, while altcoins offer the potential for growth.
The off-season is a unique time when the market offers many opportunities. However, remember that successful investments require detailed analysis, risk management and awareness. In short, DYOR!
But may peace, happiness and profit be with you! And if you found the article useful, give it a thumbs up 👍🏻!