Bitcoin is ruling the Cryptocurrency industry. Due to high investment returns, it is already dominating Altcoins and Stablecoins to a great extent.
However, the developers of other Cryptocurrencies are trying their best to compete with Bitcoin and bring their best in the market. At the same time, Bitcoin’s high volatility is creating fears in the mind of new investors. Here, Stablecoins are tied with stability and encourage these young investors to invest in this asset.
Now, a question arises as to which currency will peak in 2021. It’s vital to understand the process of these three virtual currencies: Altcoins, Stablecoins, and Bitcoins.
Bitcoin And Its Major Facts
Bitcoin was the first digital currency that was developed in the market in the year 2009. So, obviously, its worth is higher as compared to other Altcoins and Stablecoins. After the invention of this asset, other Cryptocurrencies such as Ethereum, Neo, Litecoin, etc., have developed based on Bitcoin’s theory.
Not every investor can bear the high volatility risk of Bitcoin. This is why they switch to other assets. The best part about Bitcoin is that it offers high investment returns, and this is attracting investors from all over the globe to invest in this valuable asset.
Importance of Altcoins in 2021
The market is flourishing with more than five thousand Cryptocurrencies at present, and this number is certainly going to increase in the future.
According to this link, you must never invest all your funds in a single asset. All Altcoins are based on Bitcoins’ concept, and investing in this asset can be a good strategy for you at present. It is because the value of this asset is going to increase in the future because the demand for Altcoins is rising with Bitcoin.
Unlike Stablecoins, the value of all altcoins cannot be created or destroyed. This is a vital feature of Altcoin that you must know before investing.
Importance of Stablecoins in 2021
Stablecoins are also known as Cryptocurrencies, but their value remains constant no matter what! These virtual currencies are invented with the purpose of reducing the volatility of other digital currencies.
However, Stablecoins are backed by physical commodities such as USD, gold, etc., and these are less volatile in nature. These assets have become popular in the market at present and prove to be profitable for long term investment strategies.
By investing in this asset, you must expect neither gain nor loss to your investments. This means that your value will remain constant even after ten years. The investors who want to gain good returns do not consider investing in this asset because there are no profits.
Altcoins Versus Stabelcoins Versus Bitcoins
Bitcoin is the first in the game, so it is obvious that its value is greater than other Cryptocurrencies. However, this digital currency lacks the important features of smart contracts, and this is offered by an Altcoin known as Ethereum.
Altcoins are already giving tough competition to other digital currencies. Simultaneously, to reduce the volatility of the Bitcoin industry, Stablecoins are invented. All Stablecoins are Altcoins, but all Altcoins are not Stablecoins. This is a major difference between Altcoins and Stabelcoins.
On the other hand, if you are willing to gain good investment returns, investing in Bitcoin can be your best decision, and the value of this asset is increasing. You must also bear the market volatility of Bitcoin at the same time.
If you are searching for a long-term investment plan, consider investing in more than one asset. You can invest your funds into Bitcoin, Altcoins, and Stablecoin, and then see which Cryptocurrency performs better.
The Bottom Line
Altcoins, Stablecoins, and Bitcoins have their own benefits, tricks, and features. Thus, you must consider the same while investing in any asset. According to the experts, you must consider each asset’s benefits where you are going to invest.