Why do people buy assets?
For centuries, investing in assets has been a way to preserve and grow wealth. People have always sought opportunities to hold something with inherent or potential value, from commodities like gold to more modern financial instruments. The most obvious reason? To make money. But in today’s world, the way we invest is evolving.
With the rise of digital technology, assets are no longer limited to physical items like bars of gold or stocks on paper. Cryptocurrencies, or digital assets, have reshaped how we think about investing. At the forefront of this is Bitcoin, the pioneer in the digital currency space that has dominated headlines for over a decade.
But Bitcoin isn’t the whole story. Altcoins, any cryptocurrency that isn’t Bitcoin, are another chapter in crypto and have emerged as attractive alternatives.
But why do people buy altcoins?
Get More of What You Pay For
One of the most compelling reasons people are drawn to altcoins is their perceived affordability. With Bitcoin often priced in the five- to six-figure range, it can feel out of reach for many people. While it’s possible to purchase fractional Bitcoin, owning just a small portion doesn’t always deliver the same sense of satisfaction as holding an entire coin.
Altcoins, however, are typically much more accessible, often costing just a few cents or dollars. This lower price point allows investors to acquire hundreds or even thousands of units, creating a sense of abundance. It’s not just about the quantity, it’s about the psychology of ownership. Having a substantial amount of altcoins feels tangible and inclusive, making them an attractive entry point for those who might otherwise feel priced out of the cryptocurrency market.
The Potential for Opportunity
Altcoins offer people the chance to get in early on emerging opportunities. For many, Bitcoin feels like a missed train, one that has already left the station. Stories of early adopters who bought Bitcoin for just a few dollars and turned modest investments into fortunes can make newer investors feel like they’ve arrived too late.
This is where altcoins step in. They’re often seen as the “next big thing,” providing a fresh opportunity to ride a potential wave of success. Many altcoins aim to solve real-world problems or address limitations in Bitcoin’s design, creating the possibility for substantial gains. However, this opportunity comes with significant risks. Not every altcoin will succeed, and for every standout performer, countless others fail to gain traction.
Innovation and Utility
One of the most compelling aspects of altcoins is their ability to drive innovation and offer practical uses. While Bitcoin is often seen as a store of value (or digital gold), many altcoins are tied to blockchain projects designed to solve specific problems or enable new possibilities. For example, Ethereum introduced smart contracts, which have transformed how decentralized applications (dApps) and decentralized finance (DeFi) operate.
Other altcoins focus on niche areas like gaming, supply chain management, or data privacy. These projects often bring advanced technology to life, allowing people to engage with solutions that align with their interests or goals. Some altcoins support renewable energy initiatives, enable seamless cross-border payments, or contribute to creating the metaverse.
Buying altcoins also offers a way to explore a wider range of opportunities in the crypto space. By holding different types of altcoins, people can support various projects and potentially benefit from emerging trends. This combination of innovation and utility makes altcoins appealing to those who want to go beyond Bitcoin and discover what’s possible in the world of digital assets.
The Future of Altcoins
Altcoins have gained popularity for several reasons: their affordability, the potential for early opportunities, and the innovative projects they support. While Bitcoin often dominates conversations around crypto, altcoins provide an alternative path for people looking to explore the broader digital asset space. However, as with any decision, understanding the potential and risks of altcoins is essential.
If you’re exploring ways to buy altcoins, platforms like iTrustCapital offer an option to purchase them through a Crypto IRA. This approach allows you to hold digital assets in a retirement-focused account, combining the benefits of long-term savings with access to the crypto market.
DISCLAIMER
This article is for informational purposes only and is not intended to constitute investment advice in any way or constitute an offer to buy or sell any cryptocurrency, digital asset or security or to participate in any investment strategy.
iTrustCapital is a fintech software platform for alternative assets. iTrustCapital is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.
Investing in cryptocurrencies carries significant risks due to their speculative and highly volatile nature. Past performance is not an indication of future results. No investment is completely risk-free, and every investment carries the potential for losing some or all of the principal amount invested. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner.
Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment or tax advice. Conduct your own research and consult with a qualified legal, investment, or tax professional to assess your own risk tolerance prior to investing.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and does not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
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