Altcoin market cap is on a steady rise these past few years. However, for those uninitiated, let’s take a brief look at the cryptocurrency market. What is cryptocurrency? As per the popular definition available on the Internet, it’s a form of digital asset that facilitates exchange. The ownership of each coin is recorded in a ledger which remains in an encrypted format spread across a network of computers, hence the name cryptocurrency.
Altcoin Market Cap Will Witness Further Growth
Anyone who has been keeping a tab on the cryptocurrency market has a fair idea about the domination of the Bitcoin. But, in the past few years, the valuation of BTC hasn’t seen much change. And, if we believe in market trends, we are in for an Altcoin season. The Altcoin is seeing a bullish trend with its value rising considerably. Moreover, the disconnection between the valuation of Bitcoin and Altcoin further hints at a strong probability of an oncoming Altcoin season. Even cryptocurrency traders are favoring the mid-cap Altcoins over the other available options in the cryptocurrency market.
Is Bitcoin Crashing?
If you are planning on investing in the cryptocurrency market, you should weigh your options carefully. Bitcoin still has the highest market cap, and the Altcoin market cap is yet to reach anywhere close in the cryptocurrency market. However, investors are leaning towards Altcoins due to the increased volatility. In the blockchain market, stability is not considered a reliable trend. The market will either go up or down. And, as of now, bitcoin value seems to have hit the ceiling, and finally showing some loss as well. Hence, investors are getting increasingly hopeful about the small-cap Altcoins.
Altcoins – How To Choose?
Considering that you are determined to bet into the cryptocurrency market, let’s look at your options. You can either go for Bitcoins or Altcoins. As already noted, Bitcoin seems to have hit the ceiling in terms of growth in valuation. The general tendency is that Altcoins follow suit, and their prices change depending upon the Bitcoin pricing. But, recent market figures suggest that this current is about to change. Altcoins are still receiving interest and showing a rise in price, while Bitcoin’s valuation remains nearly the same.
The tricky part is to select the Altcoin you are going to bet on. There are quite a few choices available at the point, and small-cap Altcoins do seem like a lucrative one. But, before committing, find out more about the investors. The COVID scenario has hit the business world quite hard. Hence, it is advisable to stick with the Altcoins that have robust and secure funding, and consider it as penny stocks. Don’t go all in, and don’t consider getting extremely lucky with your choice. It’s possible that you just happen to invest in the next big name in the Altcoins market. However, it will be nothing more than luck. So, opt for small-time profits. You may hit the moon, but don’t rely on that to happen for sure.