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Bitcoin (BTC) vs. altcoins: K33 Research analysis ends the debate

Mon 26 Jun 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed Invest

Altcoins, innovative digital assets with a wide range of functionalities, offer promising investment opportunities that are attracting a multitude of investors. The latter are particularly drawn to the exceptional performances achieved by these alternative currencies during the “altcoin season”, to the point of sometimes overshadowing Bitcoin (BTC), the first and main cryptocurrency. In response to this phenomenon, many analysts and investors seek to draw comparisons between Bitcoin and altcoins, in order to refine or enhance their investment strategies. Specialist research firm K33 Research has also embarked on this analytical journey.

Coins of various cryptos

Bitcoin (BTC) outperforms altcoins in the long run

The comparison between bitcoin (BTC) and altcoins is a subject of great interest to analysts, experts and investors alike. While altcoins may outperform during the altcoin season, a recent analysis by K33 Research clearly shows that the queen of cryptocurrencies outperforms these digital assets in the long term.

Analysts from the crypto-focused research company have concluded that a “Bitcoin only” Buy and Hold would be more profitable than investments in altcoins. Specifically, K33 Research compared the performance of a $1 investment in each of the 1,009 altcoins that ranked in the top 100 cryptocurrencies since 2015 to the total amount invested in these altcoins in Bitcoin (BTC).

The altcoin portfolio is currently worth $7,000. A far cry from the $50,000 achieved with the “Bitcoin only” strategy. What’s more, K33 Research noted that over two-thirds of altcoin projects have become inactive, and only 9.11% of these digital assets have generated positive returns.

Dollar Cost Averaging (DCA): The best strategy for investors?

K33 Research also sought to determine the most effective strategy for investors. With Bitcoin’s dominance over altcoins in the long run, the research firm believes that Dollar Cost Averaging (DCA) would be the best strategy for making profits. Anders Helseth, Vice President of Research at K33 Research, states that it is a “reasonable, relatively safe, and simple crypto investment strategy.”

As a reminder, Dollar Cost Averaging involves regularly purchasing digital assets regardless of their prices, rather than making a one-time purchase. The objective is to obtain an attractive average price and avoid market stress.

DCA is often compared to the lump-sum approach. While K33 Research favors the former strategy, it is worth noting that Dollar Cost Averaging also has its limitations, which may lead some investors to opt for the lump-sum approach.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.