Online gambling is a rapidly growing industry, one that is expected to grow at a rate of 11.7% per year for the remainder of this decade, reaching $154 billion by 2030, according to GrandViewResearch. A significant amount of that growth can be attributed to the rise of cryptocurrencies, which have made online gambling faster and more private than ever before. While there are many crypto currencies to choose from, Bitcoin, due to its size and its name recognition, dominates the industry.
Understanding Bitcoin: Key Features and Advantages
Bitcoin is the oldest cryptocurrency, created by the pseudonymous Satoshi Nakamoto, and was the first successful effort to transfer money using blockchain technology. Because it is the foundational token that gave rise to all others, it’s important to understand its key features.
- Established and well-known. Anyone who knows anything about cryptocurrency knows Bitcoin, the most famous of all cryptocurrency. As the most popular token, it is most widely accepted and the most trusted across the crypto world. Indeed, some blockchain entertainment platforms ranging from crypto casinos to those specializing in art, sports, or music may only accept Bitcoin and no other cryptocurrency.
- Stable (relatively) and secure. Everyone knows that cryptocurrency is volatile and a little bit risky. No digital coin is completely immune to fraud and scams. However, Bitcoin has a history of relatively stable price performance when compared with the much more pronounced fluctuations of other digital currencies. So, if you are looking for a cryptocurrency with less risk or one that is more likely to hold its value over time, Bitcoin may be your safest option.
- Most widely accepted coin. While Bitcoin isn’t accepted universally, except in El Salvador, where it is legal tender for all transactions, it is the coin that is accepted by more companies than any other. If a retailer or merchant is going to accept crypto as payment, then BTC is almost certainly going to be first on the list of tokens they accept.
- Wide availability, even at ATMs. Bitcoin is available in more locations and in more ways than most other coins. ATMs offer it, and major financial operators like PayPal, Mastercard, and Visa, support Bitcoin, making it easy to acquire and use virtually anywhere.
- Liquid and convertible. While cryptocurrencies are different from their fiat counterparts, Bitcoin is generally considered liquid because trading never stops and typically occurs at high volumes, making it easy to convert into other forms of currency without delay.
Now that we understand Bitcoin, we can begin making comparisons to its rivals, altcoins.
Understanding Altcoins: Benefits and Risks
The sheer dominance of Bitcoin can be seen in the term "altcoin", which is the collective term for an alternative to it. This terminology implies there are two sides, Bitcoin and everything else. That’s because maximalists coined the term as a way of deprecating non-Bitcoin cryptocurrency. Today, however, altcoins have exploded in popularity, versatility, and utility. Let’s take a look at some of the advantages of selecting an alternative to Bitcoin.
- Diversity of options. There are a wide range of cryptocurrencies, including relatively well-known coins like Ethereum and less famous ones like Tamadoge or Crimecoin. Altcoins range from high valuation tokens to those with near-zero dollar values. Because anyone can create a cryptocurrency, you will find an enormous variety of options for whatever purpose you need. Of course, sometimes that diversity can result in coins that are little more than memes. But more often, you will be able to select from utility tokens, governance tokens, or stablecoins pegged to fiat currency to serve a variety of needs.
- A variety of uses. Altcoins, by serving as the lesser-known rivals to Bitcoin, have more freedom to innovate, and those innovations are making a real difference across nearly every aspect of industry and technology. Altcoins have made major strides in changing the world through decentralization. Social media, finance, data storage - anything you can imagine - are all seeing major innovations thanks to blockchain technology and smart contracts pioneered by decentralized altcoins. This is because they offer a greater array of opportunities to adapt new coins for specific purposes.
- Specificity of purpose. Many altcoins are designed for a specific purpose, particularly to serve a specific community. They find popularity by serving one particular niche, whether it’s an app, a cause, or even a popular meme. At root, cryptocurrencies become successful when they have a loyal and relatively large and stable community that has adopted them. Consider, for example, the KlubCoin altcoin that is targeted to the electronic music scene. It innovated in the crypto space with a "party-to-earn" model that made it useful for clubbing music lovers. Similarly, a number of cryptocurrencies are tied to the needs of gamers.
- Greater risks and greater rewards. Altcoins sometimes have a reputation for being risky, but the actual risks and volatility of coins varies widely depending on the coin. Some, like Ethereum, are almost as stable as Bitcoin, while smaller or newer coins can see much greater fluctuations in value over time. Some may even see their valuation drop to zero, making them highly risky as an investment. On the other hand, highly volatile coins also have the potential to rise exponentially in value, giving their owners a hefty profit. The greater the risk, the greater the potential for reward - or loss. You can minimize your risk of loss by focusing on the most established and stable altcoins.
Choosing Between Bitcoin and Altcoins: A Simple Guide
Now that you know a bit about both Bitcoin and altcoins, how can you choose which is right for you? When you realize that there are thousands of altcoins to choose from, the decision can feel impossible. The good news is that there are a few key steps that can help you make the choice that’s best for you.
Think about how much risk you're willing to take
If you’re using cryptocurrency, their chances are good that you have at least some tolerance for risk, but just how much tolerance you have will help determine the coin that’s right for you. After all, everyone has a different level or risk they are comfortable with and have different reasons for choosing crypto.
- What is your goal? Are you planning to use cryptocurrency as an investment opportunity, or mostly for conducting transactions?
- How much risk can you handle? Are you more conservative, or are you comfortable with taking a chance on big profits at the risk of big losses?
- What is your investment timeline? Are you looking to score short-term gains, or are you investing for the long haul?
Research your options thoroughly
The next essential step on your path to choosing a crypto coin is researching each option thoroughly. It cannot be emphasized enough how much you need to fully understand each coin and its pros and cons before you invest real money into it. A few key questions to keep in mind as you research:
- Why does the token exist and what is its purpose?
- How does the currency work and what are the protocols involved?
- Who uses the coin and are they part of a community?
- How legitimate is the coin—are its whitepaper, development team, and community engagement reassuring?
- What steps does the cryptocurrency take to maintain privacy and security?
Evaluate how usable and convenient the coin is
When you have narrowed down some cryptocurrency options through your research, your last step is to examine how easy each token is to use and how usable it is. After all, you wouldn't want to be stuck with a coin that’s too hard to use. Therefore, you should ask yourself a few questions about your potential crypto choices:
- Is the token accepted where you want to use it?
- Does the cryptocurrency involve excessively high transaction fees that can eat away at your investment?
- Are transactions processed quickly, and how fast are they processed relative to other cryptocurrencies?
- Is the platform easy to use, and is your chosen currency limited to specific wallets or platforms?
These questions can help you to make the decision that is best for you. At the end of the day, Bitcoin and altcoins all have their pros and cons, so it’s up to you to evaluate which set of attributes works best for your purpose and any your risk tolerance. There is no one right answer that will work for everyone, but with a little research and a little analysis, you can make the best choice for you.