Bitcoin Has Died, Is the oft-repeated narrative of ‘is bitcoin dead’ playing a role in driving altcoin bull runs? Over the past few months, we have seen dizzying highs and sharp falls across many different projects in the crypto space. But why is this so?It’s not uncommon for Bitcoin maximalists to suggest that the world’s largest cryptocurrency by market cap will only continue to increase in dominance. But while Bitcoin often takes center stage, there is no denying that altcoins can also experience significant growth spurts.
Recent events appear to suggest that investor sentiment towards altcoins might be changing as, money flows away from Bitcoin due to its diminishing returns. To explore this in detail, let us take a closer look at what could be fueling altcoin bull runs and whether or not ‘Bitcoin has died’ is becoming more accepted as an investment theory.
Table of Content
Ø Understand What Altcoins Are
Ø Analyze Market Conditions
Ø Choose Quality Altcoins With Solid Fundamentals
Ø Know Where To Buy Traditional Fiat Currencies and Alternative Cryptocurrencies
Ø Research Your Options For Investment Portfolio Diversification
The crypto markets have been in a state of perpetual flux over the past few months, with Bitcoin leading the way. But as Bitcoin’s prices started to drop, altcoins began to experience a surge of popularity. Many are asking if ‘Bitcoin has died’ is the cause of this altcoin bull run? Here’s a quick look at what’s happening and some steps you can take to join in on the party:
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Understand What Altcoins Are
Altcoins, or alternative coins, are cryptocurrencies other than Bitcoin. Some popular examples include Ethereum (ETH) and Litecoin (LTC). These coins typically offer unique features that appeal to investors looking for something different from Bitcoin.
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Analyze Market Conditions
Although one doesn’t need to be an expert on the cryptocurrency markets, it would definitely help investors heading into altcoins understand the present market conditions. Are we in a bear market or is a bull run underway? Is there strong volume for particular coins or are prices correcting after a rally? Questions like these will help you zero-in on which altcoins might start moving soon.
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Choose Quality Altcoins With Solid Fundamentals
It’s important to pick an altcoin based on its fundamentals – not just because it has potential short-term upside gain potential or because everyone is talking about it online. Do your homework and investigate each coin before you invest so that you can make informed decisions instead of chasing hot tips to try and hit it big soon – investing is always risky no matter how good the ‘advice’ seems!
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Know Where To Buy Traditional Fiat Currencies and Alternative Cryptocurrencies
Owning traditional fiat currencies such as USD or EUR is still necessary for most purchases and converting them for cryptocurrency investments is essential too if you don’t have any crypto yourself already stored somewhere safe from hackers like hardware wallets, cold storage etc., so knowing where these types of exchanges occur makes things easier when you want bitcoins exchanged into Ethereum tokens (e.g.).
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Research Your Options For Investment Portfolio Diversification
By diversifying your investment portfolio across various assets classes – including quality altcoins – will help protect your investments against volatility and market crash events that can devastate poorly weighed portfolios filled with risky ideas or tokens solely relying on hype cycles rather than concrete development projects with good leadership credentials behind them, which often adds more value in terms of price appreciation versus HYPE driven movements solely relying on speculation & FOMO alike phenomena occurring all so regularly across retail based investor flights towards “newer” alternatives burning all proverbial bridges at times along their journeys…so making sure that adequate risk management practices get deployed sooner rather than later will serve investors well over time regardless how new they are to asset classes in general including decentralized ones…
Conclusion
The crypto market has experienced a surge in altcoins, leading many to wonder if Bitcoin’s decline is the cause. To join in on the party, investors must understand what altcoins are, analyze market conditions, choose quality coins with good fundamentals, know where to buy traditional fiat currencies and alternative cryptos, and research options for portfolio diversification.
FAQ’S
What is causing the altcoin bull run?
The altcoin bull run is being caused by increasing investor confidence in the cryptocurrency market and high demand for low-cap coins that offer unique features and potential. This is driven largely by retail investors, who are looking for alternative investments to hedge their risk and take advantage of a rapidly changing market.
How will the Bitcoin has died narrative affect the altcoin market?
The Bitcoin has died narrative has caused a lot of fear, uncertainty and doubt in the altcoin market. This FUD can negatively affect the liquidity and trading volumes of altcoins, making them more volatile and less attractive to potential buyers. It could also lead to fewer people investing in, or trading with these altcoins, which will lead to reduced prices.
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