Why Investors Move Profits from Bitcoin to Altcoins | Learn

Altcoin Performance

The Crypto Bull Market is one of the most exciting times for investors. During this period, massive gains made from altcoin holdings have been historically significant.

For more than a decade, Bitcoin has dominated headlines with its outstanding performance. But as Bitcoin seems to cement its status as a high-value asset, investors often explore additional opportunities within the crypto sphere. This exploration eventually leads them to altcoins.

What are Altcoins?

Altcoins, short for 'alternative coins,' refer to all crypto assets other than Bitcoin. Similar to Bitcoin, they operate using blockchain technology, yet each has its distinctive platform and features. The first altcoin made its debut in 2011, which paved the way for the development of thousands of other altcoins. Like Bitcoin, many altcoins have excelled in performance, drawing numerous investors to buy and sell these assets to explore their potential.

Why Investors Move Profits from Bitcoin to Altcoins?

Diversification

Altcoins offer an avenue to venture into the crypto markets beyond just Bitcoin. They enable investors to broaden their crypto portfolio, similar to diversifying investments across various stocks in the stock market. Each altcoin, like stocks, presents a unique use case in which investors may be interested.

Performance

Investors exploring altcoins early on might encounter unique opportunities due to their lower price at fractions of a cent. However, it's important to approach with caution, as not all altcoins are created equal.

Is Altcoin Season Approaching?

One of the most attractive aspects of altcoins is its low price allowing more investors to enter the crypto markets with the potential for their investment to increase. Considering these factors, experts and analysts hold a positive outlook on the potential of altcoins. Notably, 2017 and 2021 were landmark years for altcoins, with the crypto markets experiencing a bull run that propelled altcoins to new all-time highs. As of today (April 2024), we find ourselves amidst another bull run, with indications that an altcoin season is on the horizon. As a result, a growing number of investors are actively buying and selling crypto assets, including altcoins, in anticipation of what the future holds. Altcoins, with their lower price points, stand out as an appealing choice for those diversifying their crypto investments without stretching their budgets too thin.

Interested in buying and selling altcoins? iTrustCapital has got you covered! iTrustCapital is a software platform that allows investors to buy and sell altcoins in a tax-advantaged IRA.

What does this mean?

Consider this; when you buy and sell crypto on an exchange, you’ll be subject to capital gains taxes when making profits or trading crypto assets for another. But in a Crypto IRA, like a Roth IRA, profits off of your gains are tax-free!

Curious about why savvy investors are choosing to buy and sell crypto through a Crypto IRA with iTrustCapital? Click below to find out more!

Top 5 Reasons To Open a Crypto IRA at iTrustCapital

Ready to buy and sell altcoins at iTrustCapital? Click here to open an account today!

DISCLAIMER

This article is for information purposes only. It does not constitute investment advice in any way. It does not constitute an offer to sell or a solicitation of an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.

iTrustCapital is a cryptocurrency IRA software platform. It 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 cryptocurrency, precious metal, or investment strategy.

Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. 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. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.

Some taxes and conditions may apply depending on the type of IRA account. 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. Consult a qualified legal, investment, or tax professional.

iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and shall 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.