I have thought of this topic because I don't invest much in altcoins, just trading it to profit. I'm talking about the one you will buy that you would HODL in the long term and keeping it in your cold wallet, hardware wallet, paper wallet, or whatever you do with it as long as you keep the currency itself.
The reasons I could think are the following:
- You invest because of the Technology of the coin And what it could bring to the cryptocurrency space
- You know the developers and supporting them
- You believe you could profit in the long-term
- Because of the Name of the coin. Lol.
I'm just wondering if there are other reasons that you may have and if you agree with the ones I listed. Share it here.
I'm primarily invested in Altcoin, and very rarely hold high amounts in BTC.
While the reasons that you list are true in many cases, there are other advantages to holding altcoin, I'll list 3:
1. Staking!
Since altcoin really refers to any crypto other than Bitcoin (BTC), the only options for POW is one of many different altcoin options.
2. Privacy
Bitcoin does not provide anonymity only pseudonymity. For crypto to full replace cash worldwide it need to provide the same anonymity as cash, many altcoin chains provide this.
3. Diversity of Portfolio
While it is true that, right now, Bitcoin is doing very well but leaving many altcoins in the dust. Many altcoin investers whom were properly diversified during the past couple years saw much smoother movement in their profolio than those simply holing BTC, while these folks in this situation may currently be down from those who held BTC alone. In time bitcoin scalability issues as well as the two other items I mentioned have the ability to revive the altcoin market.
Hope that helps to clear up why some of us choose to hold our crypto in altcoin rather than bitcoin, and in the end isn't that what cryptocurrency is really all about? Choice.