Crypto trading, or the exchange of digital currencies on digital marketplaces, is a revolutionary way to invest. Cryptos are not regulated by any government and use sophisticated cryptography for extra security, which means that your money can be securely invested in a safe and secure environment. With trading in cryptocurrency, you have access to global markets with no central authority governing them, giving you more freedom than ever before when it comes to investing.
Trading in cryptocurrency is very much like trading stocks, yet with a few distinct differences. Cryptos are not bound by the market’s opening and closing hours – you can trade anytime 24/7. Moreover, crypto markets tend to be highly volatile in nature, meaning prices rise and fall quickly without any warning or pattern. Even veteran traders find themselves caught off guard when it comes to these digital assets.
Bitcoin is one of the top-traded digital assets, however, there are hundreds of other assets (altcoins) worth your attention. Let’s talk about the difference between Bitcoin and altcoins.
Bitcoins vs Altcoins
Bitcoin and altcoins may appear to be similar, however, there are a few distinguishing features between the two:
- Bitcoin is a remarkable, revolutionary crypto that has captivated people all over the world. It was unleashed in 2009 by a mysterious individual or group under the alias Satoshi Nakamoto. Unlike other currencies and payment systems, it operates on a decentralized network which means no government influences its movement nor controls its circulation. Furthermore, every transaction made with this digital currency is documented through blockchain technology, granting users secure and viable transactions at all times.
- In contrast to Bitcoin, altcoins are any digital currency that isn’t the pioneer cryptocurrency. The number of cryptos is ever-growing, with new ones being created every other day. Some of the most sought-after altcoins include Ethereum, Ripple, and Litecoin for their extra features such as faster transaction speeds, more advanced smart contract functions, and enhanced privacy measures which Bitcoin does not provide users with.
- Bitcoin stands out from altcoins with its higher market capitalization which signals a larger user base and wider acceptance. In contrast, investors and traders often identify greater potential growth in smaller coins as they are usually cheaper to purchase but still offer real possibilities for adoption and innovation. Consequently, many people consider investing in these alternative cryptocurrencies due to their potentially high returns.
When it comes to choosing between investing in Bitcoin and altcoins, the ultimate decision lies with each individual’s preference and financial strategies. While some may gravitate towards the reliability of Bitcoin and its established history, others are fascinated by the possibilities for growth that come along with more innovative altcoins. To buy crypto coins, welcome to the WhiteBIT crypto exchange.