The most trending debate in the world of crypto exchange has been between altcoins and bitcoins. The race is about which virtual currency would yield a higher rate of return. The recent trends in the global markets have made both the coins an alluring investment option because of their increasing prices and use of new technology. The launch of new crypto’s at lower prices have made investing more accessible for people. Now, from investors to traders, everyone is trying to answer the question, which is a better investment?
However, there is no single answer to this question; rather there are certain factors that can help understand this topic better. If you are thinking about investing your money, we would suggest you read and research first. To help you out we have compared the two on the following 4 factors.
Factors to consider while comparing bitcoin and altcoin
1. Popularity and market share
Launched and created ten years ago, bitcoin still remains on the top of the list with the highest market share, of about 66%. Even at times, people use bitcoin and cryptocurrency synonymously, which says all about its popularity. This has made the bitcoin rate rise to Rs 36,76,367. Its gradual acceptance and legalisation in a few countries have made it retain its top spot. However, the lower rates of new cryptocurrencies have made them increasingly in demand. The likes of dogecoin and ether are seeing a good growth percentage and have also been profitable.
Blockchain technology needs a methodology for securing transactions. As they are decentralized, they don’t require third parties to help them with it. Instead of bitcoin, uses proof of work, a process of mining. It is not the most effective technique because it takes up a lot of time, utilizes energy is expensive. However, altcoins offer an alternative method, called proof of stake. It is developed fundamentally to tackle the challenges of bitcoin and offers faster transactions at a cheaper price. It has the power to process transactions at a speed of 1 million transactions per second.
3.Easy to use
A very important factor to consider while buying digital currency is its convenient use. In the world of crypto, bitcoins are viewed as more of a long term holding investment kept holding. As the transactions speed and cost is pretty high, they aren’t the ideal option for day to day small transactions. However, altcoins have tried incorporating the shortcomings of bitcoin and offer faster transaction speed to users. Additionally, they are much more suitable for everyday buying and selling as the costs involved are relatively low.
Comparing both the crypto-coins on the risk factor is a bit hard to do because of the volatile nature of the market. The price fluctuations at unexpected times make both of them risky investments. However, due to the lower prices of altcoins, they may be considered less risky as the amount of loss would be low. For investors, bitcoins are a more popular choice for holding on for the long term while altcoins are better for day to day use.
The market is filled with numerous cryptocurrencies and the options keep growing day by day. While bitcoin may come at the top other virtual coins are catching up and making headlines with their innovative technology. The answer to which is better will depend upon the investor, as they both are good options. However, for safer bets, it is better to go for top cryptocurrencies in India For higher returns and secure trading. Additionally, ensure to use a reliable crypto exchange such as Wazirx to avoid scams.