Trading with cryptocurrency gained popularity and novice traders are joining it. You may know both Bitcoin and Altcoins. Both are digital currency and serve unique feature.
Therefore, understanding distinction between the bitcoin vs altcoins debate is essential.
Bitcoin
It is a decentralized currency that conducts on peer to peer transactions. The transaction takes place without the need of a bank or any kind of government authority.
The main features of Bitcoin consist of
- Proof of work mining mechanism
- Mainstream acceptance
- High liquidity rate, with easy conversions such as EUR to BTC available on most major exchanges, making it one of the most accessible digital assets worldwide
What Are Altcoins?
Altcoins is a unique type of digital currency. Popular altcoins include Ethereum, Binance Coin, Solana, and Cardano. Each of which has unique features and uses different technologies.
It is further categorized into four unique types.
Platform Coins
Platform Coins consists of Ethereum and Solana. It supports smart contracts and decentralized apps.
Stable Coins
Stablecoins consist of USDT and USDC. These are pegged to fiat currencies, and it reduces volatility.
Privacy Coins
Privacy coins consist of Monero and Zcash, which offer enhanced transaction anonymity.
Meme Coins
Meme coins consist of Dogecoin and Shiba Inu. It is mostly driven by community hypes
Bitcoin vs Altcoins: Key Differences
Time to explore the essential distinctions between Bitcoin and Altcoins across different aspects.
Market Dominance
Bitcoin is regarded as the most dominant cryptocurrency as per the market cap. It represents over 40 percent of the total Crypto market.
Furthermore, Altcoins are much more volatile and occupy the rest of the market share. While some of them have larger ecosystems, many still possess limited adoption.
Purpose
Bitcoin was designed primarily as a digital currency and a store of value.
Altcoins do serve different functions, including smart contracts(Ethereum), cross-border payments(XRP), gaming(AXS), and DeFi(AAVE).
Technology and Innovation
Bitcoin becomes conservative by nature since its upgrades are just to maintain security and decentralization.
Altcoins is another side of blockchain technology innovation. It comes with faster consensus and lower fees.
Investment Profile
Bitcoin is mostly viewed as relatively safer in terms of investment in the long term.
Altcoins are riskier and offer high returns when it is chosen wisely, making them attractive for short-term traders.
Regulatory Risk
Bitcoin got backed by institutional support and faces the least regulatory challenges.
Whereas altcoins are classified for their securities, raising legal concerns and trading restrictions in certain jurisdictions.
Pros and Cons: Bitcoin vs Altcoins
Bitcoin – Pros:
- Bitcoin possesses a higher liquidity rate.
- It offers stronger security.
- It deals with widespread adoption
- Furthermore, it offers lower risk relative to altcoins.
Cons
- It comes with slower transaction speeds
- It comes with limited functionality (no smart contracts)
- It comes with higher transaction fees even in the peak times.
Altcoins – Pros:
- It comes with lower entry costs
- It comes with greater variety and utility
- Do offer lower entry costs
- It offers faster and cheaper transactions
- Offers several opportunities for innovation and higher ROI
Cons
- It offers higher volatility throughout the market.
- Even offers a lower liquidity rate in certain specialized cases
- It is always prone to scams or failed projects
- It also offers heavier regulatory risks
Which One Should New Traders Choose?
Start with Bitcoin:
Bitcoin is easier to accept and provides a safe entry point. Novice traders always choose Bitcoin while learning the dynamics of the market.
Always learn how to buy bitcoins on BTZO through a beginner-friendly interface and in a secure way. The overall process seemed simple, and you will gain rapid exposure to the most trusted cryptocurrency at once.
Explore Altcoins:
Once you get comfortable with the basics of Crypto and blockchain technology. Then diversify your cryptotrading with Altcoins. Always choose those with solid projects, use cases, and the presence of active communities.
To get started, follow this step-by-step guide.
Getting Started with BTZO: A Quick Walkthrough
BTZO is a flourishing crypto platform that deals with both experienced and novice traders. It offers
- Deposits and withdrawals can be done with the aid of INR
- It also offers spot trading for major altcoins and Bitcoin
- It offers higher security and two-factor authentication
- It comes with real-time charts and indicators
- There is a presence of a responsive mobile application and 24/7 support.
How to begin:
Sign Up and Verify
Do create your account with your official email or phone number. Complete the entire KYC process with your Adhaar and PAN Card to get full access.
Deposit Funds
To fund your account, either use UPI, Netbanking or bank transfer to fund your account. BTZO does support multiple local payment methods for your absolute convenience.
Choose Your Asset
Always use filters to select the Bitcoin or any Altcoin that is available for you. You can compare their market cap, volume, and recent price movements.
Place Your Trade
Do decide your trade amount, set a limit and a market order, and also execute the trade. Your crypto will reflect in your wallet instantly.
Track and Manage
Do monitor price changes, set alerts, and use BTZO’s built-in analytics to optimize your strategy.
Steps for a trader
If you are starting your career in crypto, keep these tips in mind.
Do your research
Do learn about the coin’s project, roadmap, and the entire community.
Don’t go all in
Always start with a smaller amount to test the water.
Avoid FOMO
If a coin has been trending for some time now, it doesn’t mean it is the right choice for you.
Stay updated
Always follow the news and market trends from a reliable crypto platform.
Use secure platforms
Always try to choose a licensed and reputable exchange like BTZO.
Conclusion
In cryptocurrency trading, understanding how to trade altcoins on BTZO alongside bitcoin does help to build your trading foundation. Both offer stability and opportunity. Each plays its unique part.
For smart traders, they should start with Bitcoin and then move to altcoin trading.
