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How Bitcoin (BTC) and Altcoin Prospects Stack Up for the Next Bull Market

Press Releases Crypto News BeInCrypto How Bitcoin (BTC) and Altcoin Prospects Stack Up for the Next Bull Market

With a crypto bull market around the corner, investors must thoughtfully decide whether to bank on the stability of Bitcoin (BTC) or explore the Wild West of altcoins. Those with limited capital will need to think carefully before making a decision.

However, the Bitcoin community believes the asset will grow indefinitely in each cycle. Can it manage that level of growth this time, though?

An effective crypto investment strategy requires a thorough understanding of key market factors. The cost of missed opportunities and an investor’s risk appetite, to name a few, must be considered well in advance of any investment.

Cost of a Missed Opportunity

The evolving nature of the crypto market makes the cost of a missed opportunity a nontrivial concern. Should assets be invested in BTC, an asset widely regarded as digital gold, or in altcoins that offer gains of 100% or more?

The cost of missed opportunities becomes important when investors compare returns from investment alternatives. Since time and capital are finite resources, they must quickly recognize trade-offs that will optimize their portfolios.

Making these decisions is not easy. Understanding that choosing one asset is inseparable from abandoning another is a foundational aspect of investment decisions.

What About the Risk?

The cryptocurrency market, notorious for high volatility, requires one to assess risks carefully. Bitcoin can be attractive to new investors in difficult markets because of its price stability.

Altcoins that tank in a bear market can offer a significant opportunity for gains but also present higher volatility and, therefore, more risk. A good grasp of risk tolerance will help the investor make a decision.

Any altcoin investment should be guided by the value of the token as well as the progress of the associated project. Bitcoin investments, on the other hand, are usually based on faith in the asset’s

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Author: David Thomas

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