Which Altcoins Go Up When Bitcoin Goes Down?
As we all know, the cryptocurrency market is highly volatile and it’s not uncommon to see major dips in Bitcoin’s value almost every week. Even though altcoins tend to follow Bitcoin, when it is down, some investors look to diversify their capital within the crypto universe selling their Bitcoin to buy more stable assets. Diversification increases returns in the long run and pouring your capital into monetized smart contracts instead of leaving it in trendy Bitcoin form, seems to keep the investors with a more, stable positive attitude. This is when a horde of altcoins comes in.
Anyway, volatility is completely normal in the digital asset market. Experts agree that the healthy approach when investing in cryptocurrencies is to make it a small part of your overall inversions, like 5% of the whole portfolio. This way, you reduce the risk of losing a big part of your capital and you can let the swings rise and fall without being constantly worried.
Ethereum’s blockchain aims to function as the foundation for many different tokens other than Ether, enabling a channel to exchange valuable assets.