According to analysis by K33 Research, a ‘Bitcoin-only’ investment strategy has outperformed an altcoin portfolio over the long term. While altcoins can offer promising investment opportunities and diverse features, they are subject to volatility and unpredictable shifts. Historical data shows that apart from a few times since 2015 when altcoins outperformed BTC, a ‘Bitcoin only’ investment strategy has fared considerably well.
The report calculated the performance of a $1 investment each in 1,009 altcoins since 2015 as they entered the top 100 ranks by market capitalization on CoinMarketCap versus the same amount invested in Bitcoin simultaneously. The altcoin portfolio would be worth approximately $7,000 today compared to $50,000 from the Bitcoin-only strategy.
Investors aiming to achieve higher returns by trading market sentiment more aggressively need to pay more attention and take on more risks. Therefore, an effective investment strategy for crypto investors can be dollar-cost averaging (DCA) into Bitcoin, which is a sensible, safe, and simple approach.