Why Do People Buy Altcoins?
Trading in cryptocurrencies has been a contagious trend that has dominated the fintech domain in the recent years. Many got into crypto trading simply out of the temptation to try it out as they watch the others make millions in it. Today there are numerous cryptocurrencies and each has a different relationship with the market. With the many options available every type of crypto investor with every capital capacity can start investing in crypto trading. While many traders are waiting for the Bitcoin bubble to burst there are many that have benefited from investing in altcoins. If you rely on a trading bot then your work definitely gets easier. But that is no excuse to stop learning about the various types of cryptocurrencies.
Though bitcoins have been around for a really long time there are several reasons why people choose altcoins over bitcoins.
Variety is the prime concern
Investment itself requires a lot of diversity. The more the variety that exists in your portfolio the better are your chances of making profits. Bitcoins are great. Bitcoins do yield a lot of profits. But depending on a single cryptocurrency for a long duration is not what anyone profitable trader would prefer. Altcoins offer the variety that every trader looks for.
Altcoins offer the option to start small
Bitcoins have grown a great deal in the past few years. For the investors who start with a small capital, the altcoins offer a variety of coins of different prices. Some of them might be overvalued and some undervalued. But then when there is variety one can easily find a suitable coin for the budget at hand. Altcoins still remain as popular choices among the first time investors who wish to minimize the risks and minimize the investment amount.
Wait for the bubble to burst
Investors prefer going for the assets that are still in the growing phase rather than settling for something that is speculated to be a bubble. Altcoins offer a lot of options where the coins have just started to grow resulting in a higher potential for growth in the value. These are the relatively newer coins which have a good chance of multiplying their value in a short duration and they happen to be great options for those who prefer long-term trading in the crypto market.
Social media support
The purchasing patterns of crypto investors are heavily influenced by the social media signals. There are many new coins whose demand has increased due to the increasing popularity of social media.