The Pros And Cons of Altcoins Over Bitcoin

For the uninitiated, the terms "cryptocurrency" and "Bitcoin" are all but synonymous. That's no big shock - Bitcoin was one of the first blockchain-backed coins out of the gate. It has used the resulting advantage to grow in popularity and value over the years, and its ubiquity has meant that it's the first place most novice investors will look when it comes to crypto. This means, of course, that people will take some convincing to look at other assets.

Investing in altcoins - a term we can use to refer to any crypto coin other than BTC - is something that you need to do with eyes wide open. Naturally, there is a lot more information and consequently more support for Bitcoin investors. So if you're going to look at a different way of getting into crypto, it's worth having full awareness of the pros and cons of doing so.

Pros

1. Greater stability. As altcoins are less well-known, they're less aggressively traded and less prone to the "pump and dump" that will be familiar to people who have been burned by Bitcoin investments. If you buy Ripple, you may not make the immediate sky-high profits that are possible with Bitcoin - but you won't see the same dips, either.
2. Learning from Bitcoin's mistakes. The very definition of an altcoin is that it is developed in response to BTC. This means that any issues that become visible with the crypto coin of choice can be avoided or speedily corrected. Using more refined tech and infrastructure makes altcoins easier to use.
3. Safety from government crackdowns. Bitcoin has been in use for 13 years, and has been the model for other coins for just as long. This means that when governments pass laws to regulate crypto, they're working from that model. While a Bitcoin bettor might see their profitability countered, people using a Litecoin casino will avoid the same fate. This is likely to be amplified by green legislation, as Bitcoin mining is highly energy-dependent.

Cons

1. Lack of exposure. Investors do want to see profits, even if they're not in it to make a quick buck. The comparative lack of focus on altcoins means that they're sometimes slow to make profits. This is less true of bigger names like Ethereum, but still a concern.
2. Risk of scams. When someone mints a new cryptocurrency, they're not doing it in a vacuum. They've seen the potential for profit with Bitcoin and the more established altcoins. But with a limited history to draw on, altcoin investors are at risk of being scammed. The newer a coin is, the greater this risk - so look towards older altcoins.
3. Narrow acceptance. Bitcoin is a big hitter, with even national governments paying attention to it (whether that attention is positive or negative is a side question). Due to this power, Bitcoin is accepted more widely than any other crypto asset. That's not to say that altcoins aren't accepted anywhere, and if you're holding them as an investment it may not even matter, but if you want an alternative to fiat currency, choose wisely.

Altcoins certainly have their advantages, and smart investors will see the benefits of a diverse portfolio if they pay keen attention to what's going on. However, that attention is not optional - if you don't keep your eye on the ball, you'll be punished.