Now that market sentiment has changed and traders are feeling bullish, comes the age old question, Bitcoin or Altcoins? Let’s take a look at which investment strategy may have the bigger payoff.
Buy Bitcoin or take chances in the Altcoin Casino?
The bullish sentiment is back, and traders have been placing their allocations on their favorite blockchain projects. The question on most investor’s minds is which coin will have the biggest payoff? Is it Bitcoin, the largest coin by market cap, or smaller cap Altcoins?
Bitcoin is the most decentralized project, with the most users, and the best minds in computer science currently working on advancing the networks development. It has the largest network effect, the most supporting infrastructure built out around it, and the best trade-offs for self sovereignty. Perhaps most importantly for traders, Bitcoin also has the most liquidity, and is the most secure network, with the highest amount of POW hash rate to validate transactions.
Altcoins on the other hand are usually a lot more volatile and risky. They are not as secure, don’t have as much liquidity, and can often be attacked since they have a lower hash rate, or they are less secure consensus-wise like many PoS coins. Some altcoins have competent devs, others do not. Each altcoin should be looked at on a case by case basis and intimately studied by investors, before they go long.
Large cap altcoins like Bitcoin Cash or Ethereum do have a fair amount of infrastructure complementing the networks. For example DeFi is almost at a billion dollars investment on ETH. That being said, each of these projects built on top of an altcoin platform needs to be scrutinized individually, as there are usually tradeoffs.
Altcoins offer high volatility
Many altcoin traders like the added volatility of small cap altcoins because they offer a much larger profit if they do start to moon. Most altcoins rise when Bitcoin rises, sometimes by a lot more than BTC itself, but the same holds true if BTC starts to dump also.
During the 2017 bull run some traders became millionaires from a super small altcoin that suddenly received a bunch of interest because of a partnership, or new feature. Regardless, most altcoins lost over 90% of their value during the bear market and some projects died leaving investors holding a bag of worthless tokens.
Bitcoin has fallen in price dramatically and lost more than 80% of its price several times, but has also gone from $0.06 to its all-time high of $19,891, gains of 33,151,566.66%. It is very volatile, but due to its limited supply, and consensus rules, a very secure investment, with almost unlimited upside potential.
Altcoins should be viewed more as penny stocks. You may be able to pick out the next Google, Amazon or Tesla, but it isn’t very likely. It’s more likely to be dumb luck. Each Altcoin is very different from every other, and also very different from Bitcoin.
If you plan to invest in Alts, please do your own research and be aware that disingenuous marketing sensationalizes almost every altcoin project. Altcoins, and the companies behind the projects are also vulnerable to regulation, Bitcoin is not.
Bitcoin is the far better investment for 2020. Not only is it seen as a safe haven asset, but it’s also the original cryptocurrency and continually leads blockchain development through it’s BIP process. Altcoins can make you more money than Bitcoin, it’s true, it’s just a lot riskier, and you could lose everything in an instant.
Altcoins or Bitcoin, where will you put your money this year? Add your thoughts below!
Images via Shutterstock The post appeared first on Bitcoinist.com. origin »
Data shows the Bitcoin investor sentiment has plunged to the lowest level since the middle of October. Here’s what this could mean for BTC’s price. Bitcoin Fear & Greed Index Has Seen A Decline Recently The “Fear & Greed Index” refers to an indicator created by Alternative that tells us about the general sentiment present among the traders in the Bitcoin and wider cryptocurrency markets.
Bitcoin could be building up for a bullish move as ETFs and large holders maintain positive flows.
Market sentiment continues sliding away from greed, but sell pressure remains relatively weak.
Data shows that the Bitcoin trader sentiment is currently neutral, a sign that investors are indecisive about the direction of the cryptocurrency. Bitcoin Fear & Greed Index Is Right In The Balance Right Now The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment among the traders in the Bitcoin and wider cryptocurrency markets.
Data shows that the positive sentiment around Bitcoin has spiked on social media after BTC’s return above $58,000, implying investors may feel FOMO. Bitcoin Positive Vs. Negative Sentiment Ratio Has Spiked Recently According to data from the analytics firm Santiment, the crowd has recently shown a sudden burst of optimism around Bitcoin.
Such expansion comes despite a recent drop in bitcoin (BTC) prices, indicating positive sentiment among miners after a bout of selling in the past few months.
Bitcoin's surge to $70,000, driven by positive sentiment from the Nashville conference, may influence market dynamics and trader behavior.
The post Bitcoin hits $70,000 as Nashville conference boosts sentiment appeared first on Crypto Briefing.
Bitcoin’s recent 20% surge over the past three weeks has reinvigorated bullish sentiments among traders, according to data from Santiment. This sentiment shift marks the most positive outlook on Bitcoin (BTC) since March 2023, with the term “Bitcoin” being discussed…
Indian homegrown cryptocurrency exchanges are recovering from the shock that the imposition of a controversial tax on crypto earnings dealt them with but sentiment is looking up now due to Bitcoin halving and US presidential elections around the corner.
The current sentiment among Bitcoin investors may hold the key to understanding whether the current drop is a buying opportunity or not. “Buy The Dip” Optimism Is Fading In The Bitcoin Market In a new insight post, the on-chain analytics firm Santiment has looked into how the trader sentiment has shifted in the BTC sector since the crash a few days back.
Bitcoin struggles to gain widespread adoption despite increasing disillusionment with banks. Explore the myriad challenges Bitcoin faces.
The post Why Bitcoin Falters Amid Historic Anti-Bank Sentiment appeared first on BeInCrypto.
Data shows the Bitcoin market sentiment has declined to neutral today as the price of the asset has dropped below the $22,000 level. Bitcoin Fear And Greed Index Now Points At “Neutral” Sentiment The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the Bitcoin market. The […]
Many investors are uneasy since Bitcoin value has fallen by around 70% since its peak in November 2021. In the meantime, market sentiment is at an all-time low due to analysts’ expectations of a major recession.
The price of Bitcoin fought its way up 2. 9% during the past 24-hours, while general market sentiment remains in the zone of ‘extreme fear. ’ To give this sentiment some wider context–the announcement of the Federal Reserve planning to raise interest rates to curb inflation came accompanied by the International Monetary Fund (IMF) warning about a […]
The post Bitcoin ‘death cross’ watch.
Key takeaways Prominent Economist Steve Hanke predicts a Bitcoin market crash. His sentiment is shared by ‘CryptoWhale’ who expects Bitcoin to fall to as low as $10,000. Market sentiment however seems to be bullish even as Plan B reaffirms that the S2F model is still in play.
With such a large spike in bitcoin sentiment recently, a bitcoin rally could be underway. Bitcoin has been fluctuating between $30k and $40k for a while now with no real significant movement either up or down.
Bitcoin plunged by more than $3,000 after establishing a record high on Tuesday, stoking concerns about an extended price decline on growing profit-taking sentiment. Nevertheless, the flagship cryptocurrency discovered a substantial interim support range above $44,000.
Ever wondered what the classic bottleneck is? In the crypto-market, when Bitcoin’s price crosses a long-known resistance and the price rallies, CT is filled with bullish sentiment, bullish tweets, aThe post Consider this before you take Bitcoin's market sentiment at face value appeared first on AMBCrypto.
A rebound in the Bitcoin price this week lifted its short-term bullish sentiment, especially after it broke above a string of crucial technical resistance levels. Nevertheless, the benchmark cryptocurrency might be walking into a bull trap, as per independent trading consultancy WCSE.
Bitcoin's 2020 rally is stalled, for now. However, throw some liquidity and bullish trading sentiment in the mix and you have a winner. In fact, an in-depth look at Bitcoin Futures' charts suggests thThe post Fear not - Traders' sentiment will ensure Bitcoin is back appeared first on AMBCrypto.
Bitcoin has seemingly entered no man’s land, with the price ping-ponging between $11,000 and $12,000. A top analyst has corroborated this sentiment, recently noting that neither his bull nor bear case has been confirmed.
Another heavy brushoff from $10,000 is making investors and traders uncomfortable as Bitcoin continues waning, currently trading at $9,400 at the time of writing. Clearly, all the rejections are not exactly a good thing for Bitcoin’s sentiment, however, it’s notable that bears aren’t getting an extensive correction. BTC has lost the daily 12-EMA and the […]
After beating the odds with respect to generating significant gains and sustaining an elevated level of optimism, Bitcoin has been relatively disappointing over the past few weeks.
Since the 2nd weThe post Bitcoin's $10K struggles affecting social media sentiment appeared first on AMBCrypto.
Despite the bullish momentum that pushed Bitcoin above $9,000, sentiment analysis shows that investors are getting skeptical, indicating an impending pullback. Shifting Bitcoin Sentiment Bitcoin surged more than 27% over...The post What the Future Holds for Bitcoin, Analysts Weigh-In appeared first on Crypto Briefing.
A major difference between digital assets and the traditional asset class is the impact of market sentiment.
In the case of crypto-assets such as Bitcoin, sentiment in terms of search engine volumeThe post Bitcoin's Reddit Community better predictors of king coin's price than Google appeared first on AMBCrypto.
Bitcoin has come a long way since its bull run in 2017, with many arguing that the crypto-market has significantly matured since. At press time, market speculation was high with regard to the industryThe post Bitcoin UTXOs in profit may suggest shift in 'hodling' sentiment appeared first on AMBCrypto.
With sentiment continuing to be a significant factor in the price and momentum of digital assets, Brave New Coin has launched a weekly Bitcoin ‘Twitter Sentiment’ infographic - providing at-a-glance insight into the dominant weekly narrative in Bitcoin’s Twitter-sphere.
Following a positive week in which Bitcoin made a solid 18% the bears appear to be returning in force. Sentiment is turning negative once again as hopes of a Christmas rally start to dwindle and analysts eye $6k for a second time.
2019 has been monumental for the Bitcoin ecosystem from an adoption perspective, as the year welcomed several financial institutions into the industry, most notably ICE's Bakkt and its Bitcoin FuturesThe post Bitcoin's YTD price decline sets up bearish sentiment before 2020 halving appeared first on AMBCrypto.
While yesterday’s Bitcoin crash took traders by surprise, sentiment analysis shows that the floor had been crumbling beneath their feet for some time. Data from The TIE show that Bitcoin’s daily sentiment score, which measures the number of positive or negative conversations on Twitter, has been declining for the entire month of September.
In any financial trading space, market sentiment plays a huge role in deciding the outcome or direction of the price over a certain time period. In the cryptocurrency ecosystem, market sentiment is even more evident and sometimes, it is more important than the fundamental properties of the coin itself.
Much of the crypto market may have flipped sentiment to being bearish on Bitcoin after yesterday’s dump that bled out over $20 billion from the total crypto market cap. However, according to one of the most respected crypto analysts in the space, an important trend indicator suggests that the current price action very closely resembles.
After breaking below $10,000 yesterday, Bitcoin has faced a significant influx of selling pressure that has sent its price reeling down towards the lower-$9,000 region. This sell-off has drastically altered the overall market sentiment and came shortly after BTC made a failed attempt to surge towards $11,000.
Bitcoin dropped $700 in 30 minutes and hit $9,500 after hovering over $10,000 for more than a week. Despite the bullish sentiment seen across the market as Bakkt’s Bitcoin futures launch approaches BTC could be signaling that a shakeout is underway.
As the altcoin market continues to bleed out and sentiment around Bitcoin’s crypto cousins reaches a point of extreme despair, the question about their long-term value has come up often in recent days.
With political and economic tensions escalating, investments in safe haven assets such as gold are on the rise. The commodity has often been compared to Bitcoin, but a recent outbreak of fake bars clearly illustrates the glaring differences in the two asset classes.
The Crypto Fear and Greed Index reached its lowest value in history. As Bitcoin hovers below $10,000, investors fear the potential for further decline could jeopardize the idea that a new bull market materialized.
The cryptocurrency market has somewhat stabilized, presenting a predominantly green landscape as Bitcoin struggles to stay above the psychological $10,000 marker. Sentiment for Bitcoin has seen a moderate improvement towards a strongly neutral outlook.
Cryptocurrency politics is focusing on Bitcoin at the expense of altcoins, but a flip could occur any time, an industry investor has warned. Simpson: Don’t Pin All Your Hopes on Bitcoin That was the conclusion from Arianna Simpson, founder and CEO of crypto and blockchain-focused investment fund Autonomous Partners.
Cryptocurrency markets fell hard on August 21 following the $700 price drop bitcoin core (BTC) saw during the early morning trading sessions. Most digital assets have lost 2-8% in value as the overall market valuation of all 2,000+ coins has plunged to $263 billion.
Bitcoin dipped below $10,000 after nearly reaching $11,000. Despite the bullish sentiment seen across the market following Bakkt’s approval for physically-settled Bitcoin futures, BTC is sitting at a pivotal point that could mark the direction of its trend in the near future.
Policymakers from the Group of Seven advanced nations agreed to collectively coordinate scanning for early warning signs that may tip competition in digital markets.
Policymakers from the Group of Seven advanced nations agreed to collectively coordinate scanning for early warning signs that may tip competition in digital markets.
The week's economic calendar includes the release of US GDP figures. Meanwhile, crypto markets have seen significant gains, reaching a $1.19 trillion market cap.
The post Weekly Economic Calendar: Q3 GDP Figures and More Market Volatility appeared first on BeInCrypto.
The largest cryptocurrency by market capitalization has been surging this week after three financial services giants filed applications for spot bitcoin ETFs.
Markets surged for a second time in the less than 24 hours following the fund management giant’s announcement that it had filed paperwork for the formation of a spot bitcoin ETF.
