Recent crypto headlines have had Siacon on the radar due to its substantial movement in the market against Bitcoin. The crypto market is beginning to rebound from the drastic COVID-19 pandemic that has affected the economy, giving investors hope. And while big names like Bitcoin are making progress once again, smaller altcoins like Siacoin are taking leaps and bounds. Looking at the market on April 30, 2020, this altcoin was surprisingly trading at 28.96% higher than Bitcoin.
What is Siacoin Anyway?
Siacoin is not your typical cryptocurrency for a number of reasons. As a decentralized blockchain network, it resembles other altcoins on the market but has its own attractive features. Sia has the ability to store personal data by splitting it apart, encrypting it, and scattering it across the network. One special feature is that users can rent out their own hard drive space and get paid in their cryptocurrency.
As a decentralized network platform, there is no limit to the total amount of digital tokens available. These coins must be mined, but consequently, over time, reward blocks will decrease, making Siacoin inflationary. While some investors shy away from this aspect, others see it as an opportunity, if capitalized on early enough.
Are Altcoins Worth the Time and Effort?
Many cryptocurrency enthusiasts are familiar with the big names like Bitcoin, Ethereum, EOS, and XRP, to name a few. But only those investors who dive deep into the crypto world will know about the worthy altcoins. Even though altcoins like Siacoin are not dominating the market cap, they are still making a niche in the market. This significant upward movement could mean big changes for not only competing altcoins but also the bigger name crypto coins.
When exploring investments, it’s always a good idea to not put all your eggs in one basket, per se. Smart investors will not limit their assets to just 1 or 2 big names, but rather diversify and branch out. This method should also be followed in the digital currency world. This is where altcoins come into play. Seasoned crypto enthusiasts will often research several smaller altcoins and begin to acquire a variety of assets for their portfolio. If you are willing to investigate altcoins like Siacoin, you may find a multitude of beneficial assets.
Is it Worth Taking a Chance?
Many potential investors will have to consider their comfort level when looking at cryptocurrency investments. While some may find excellent choices for their portfolio, others may choose not to take on such a risk. How you proceed will depend on several factors, including:
1. How much can you afford to lose?
2. How much are you willing to invest?
3. What are your short-term/long-term goals?
4. What is your knowledge level of cryptocurrencies?
5. How much diversity do you want in your portfolio?
While these are important questions to consider, there are many more that should be explored when choosing investments. Talking to other investors in cryptocurrency and reading online blogs could also help you make choices for your portfolio. Don’t be afraid to ask questions and do your homework before making any big decisions, your assets will thank you.