Every time altcoins bleed, the media starts spreading rumors about an upcoming altcoin apocalypse. Bitcoin’s dominance is currently at 68.7 percent and altcoins account for 31.3 percent of the crypto market. This includes projects that are uninspired and theoretical that are marketed alongside currently launched, real-world projects. While innovation is still missing in most altcoins, a handful of them have given double digit returns in the past year.
With Bitcoin’s increasing dominance and price action, it is easy to lose faith in altcoins. Several altcoin projects have shown the crypto industry their creative potential. Lesser-known coins like Sia Coin, Ontology, Cardano and Red Pulse have gained popularity due to their unique real-world applications. The trend in the past has indicated that altcoin prices follow Bitcoin prices and as Bitcoin price dropped, altcoins dropped further. Their price action is directly tied to Bitcoin, but it is interesting to note that altcoins have only hit bottom twice in the past two years. Despite being a popular cryptocurrency, Bitcoin faces several technical challenges that altcoins like Ripple, Litecoin and Bitcoin Cash are trying to overcome.
Successful crypto traders and investors diversify their investments across altcoins and book profits when price increases, every few months. During the rough winter months of 2018, the crypto market experienced a brutal bear market and most altcoins were robust enough to survive this. These altcoins haven’t died yet due to the solutions that they offer:
- Smart contracts
- PoS/ PoC mechanisms
- Supply chain management
- DApps and much more.
Just because an altcoin is not Bitcoin doesn’t mean it is worthless. Altcoin predictions have been mildly bullish for the past four months and building wealth through altcoins tends to happen at a faster rate than through Bitcoin. It is often the market crashes that affect Bitcoin price more adversely than altcoins. But conversely, these price actions also tend to wipe out incompetent, inconsequential altcoin projects from the market. Even with this, all indicators show that altcoins are here to stay, now and well into the future.
The crypto market is highly volatile, and the ability to speculate on which technology will shape the future makes it interesting and profitable. Several competent altcoins are being introduced through IEOs and STOs in 2019, though few of them are going to zero, it’s a small percentage. Avoiding losses from altcoin crashes require research, analysis, and portfolio diversification. According to many crypto experts, altcoins that focus on future technology and solutions will have longevity and potential profits. You just have to dig and find the good ones.
