Altcoins, or alternative cryptocurrencies, offer a range of functionalities beyond Bitcoin’s primary use as digital gold. Ethereum, for example, supports smart contracts and decentralized applications, while Ripple focuses on facilitating cross-border payments.
Diversifying your portfolio by investing in altcoins can potentially increase your returns and reduce risk. However, it also introduces additional volatility and complexity. It’s essential to research each altcoin’s use case, development team, and market potential.
Popular altcoins like Ethereum, Litecoin, and Cardano provide various benefits and opportunities for diversification. Building a well-rounded portfolio involves balancing Bitcoin’s stability with the innovative potential of promising altcoins.
