The cryptocurrency market has seen extreme price swings since its inception more than a decade and a half ago. While Bitcoin (BTC) was the original cryptocurrency, new coins, called altcoins, broke the scene. Then came memecoins with the launch of Dogecoin (DOGE), which represent a more unserious nature in the cryptocurrency market. Let’s discuss which type of cryptocurrency you could consider for the next bull run.
Bitcoin, Altcoins, Or Memecoins: Which Is Best For You For The Next Cryptocurrency Bull Run?
Bitcoin (BTC) is often considered one of the “safer” cryptocurrency. Although cryptocurrencies, in general, are considered high-risk assets, BTC is often seen the safest bet within the crypto market. Other assets often tend to follow BTC’s trajectory. Many investors choose BTC for long-term gains.
Altcoins, such as Ethereum (ETH), XRP, Solana (SOL), have brought significantly more use case scenarios for the cryptocurrency sector. These projects are often pushing the boundaries of blockchain technology. Altcoin prices often follow BTC’s trajectory. However, in bullish phases, they can give higher returns than BTC.
Also Read: $1,000 Investment in XRP 12 Years Ago: What’s It Worth Today?
Memecoins are among the riskiest assets in the market. However, with high risk comes higher reward. Meme cryptocurrencies often experience violent price swings, but in bullish situations they often outperform major assets. For example, during the 2021 bull run, Shiba Inu (SHIB) overshadowed the larger market by a huge margin. While Bitcoin (BTC), Ethereum (ETH), etc. climbed to new all-time highs, Shiba Inu (SHIB) rallied by many million percent, turning average traders into millionaires.
Now that we have clarified what each type of cryptocurrency brings to the table, the safest way to approach would be to have a bit of everything. Bitcoin (BTC) for long term growth, altcoins for engaging with decentralized applications and blockchain technology, and some memecoins for big returns in case of a bull run. However, the cryptocurrency sector is extremely risky and prices often see a lot of volatility. Make sure to do proper research before putting your money into the cryptocurrency space.