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Why Your Crypto Portfolio Should Have Altcoins

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If you are an experienced crypto Portfolio investor or have only recently launched your cryptocurrency investment journey, you may be wondering whether you should diversify your existing portfolio to include altcoins or alternative coins.

Crypto Portfolio Should Have Altcoins

Crypto Portfolio

It can be tempting to rely on coins that are not only widely known but widely trusted but this is only likely to end in disaster as you place your trust in a single digital token with potentially catastrophic consequences for you and your financial outlook. To find out why your cryptocurrency portfolio should include altcoins, continue reading.

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It can save you money

If you are familiar with the cryptocurrency investment process, you will more than likely be aware of how expensive it can become to continue investing in the most popular and successful digital tokens.

It can be daunting to invest in a cryptocurrency that has little to no recognition or widespread usage but by taking the plunge and doing so, you can save yourself a considerable amount of money.

This has already led to a growing number of both experienced and inexperienced cryptocurrency investors opting to purchase a fraction of a single digital token as opposed to an entire coin.

It can also lead to you amassing a greater volume of altcoins compared to their better-known counterparts with the potential to make a substantial return on your investment, also an exciting prospect.

It can lead to higher growth potential

If you have only recently launched your cryptocurrency investment journey, you are probably interested in growing and developing until you master the art of your craft.

It is, after all, entirely possible to make a considerable amount of money by investing in better-known cryptocurrencies, such as Bitcoin and Ethereum, but with greater demand for both lending and staking high-worth digital tokens, they have more than likely already undergone the vast majority of their total growth with little to no room for future growth spurts, at least not at a rate at which we have witnessed in the past decade.

The introduction of altcoins, however, has emerged as an exciting development and, as result, can lead to higher growth potential regardless of how long you have been building your cryptocurrency investment portfolio with bounds of unrealised potential and future market adoption worth getting excited about.

It can expose you to different services

If you are familiar with a brief history of how cryptocurrency steadily infiltrated the mainstream, you are probably also familiar with how some better-known coins paved the way for the industry to explode on a global scale.

It has been the introduction of altcoins, however, which has largely been driven by cryptocurrency investors seeking to purchase LTC, XRP, and Polkadot for example, that has pushed the envelope when it comes to the limits of cryptocurrency investment.

The launch of Litecoin in 2011, for example, has achieved faster speeds and higher caps whilst the launch of Peercoin in 2012 revolutionised the cryptocurrency investment world forevermore by introducing proof-of-stake.

It is even possible for altcoins to steadily climb the ranks to become better-known with Ethereum, which is currently second to none other than Bitcoin, cementing its position by providing smart contracts and winning over international businesses and global banks in the process.

It promotes sustainable mining

In the past couple of years, mounting concerns regarding the environmental impact of cryptocurrency mining have come to light.

In a recent study by the University of Cambridge, for example, the process of mining Bitcoin reportedly consumes upwards of 129.24 Terawatts-hour, or TWh, every single year which is equivalent to the amount of energy required to power Sweden, Ukraine, and Argentina.

In response to this worrying trend, altcoins have emerged as a suitable solution to the problem of excess energy consumption by providing a number of alternative mining methods that rely on fewer resources and, as a result, are less resource-intensive than their better-known counterparts.

This is done by eliminating the need for cryptocurrency mining altogether, which has already proven successful for Nano or introducing proof-of-stake which has seen altcoins increase their energy efficiency and lower their carbon footprint.

It can diversify your portfolio

If you have played it safe and relied on better-known cryptocurrencies, such as Bitcoin and Ethereum, throughout your cryptocurrency investment journey so far, altcoins can allow you to diversify your portfolio and lower your risk in the process.

This can protect you in the event of one of your existing cryptocurrencies performing poorly or, in the worst-case scenario, rapidly plummeting with little to no warning beforehand. It can also expose you to a greater selection of digital tokens and, as a result, a wider range of unique purposes and competitive advantages.

If you are toying with the idea of introducing altcoins into your cryptocurrency portfolio, it may be worth taking the time to familiarise yourself with the various benefits of doing so beforehand.

It can, for example, save you money, lead to higher growth potential, expose you to different services, promote sustainable mining, and, last but not least, diversify your portfolio which can lower your risk and protect you in the event of a market crash.

Techniblogic
Techniblogichttps://techniblogic.com/
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