For the price of one millibit – or a thousandth of a bitcoin – you can buy 700 verge or 1,300 reddcoin. These microcap coins lack bitcoin’s luster, but they do have two things in their favor: there’s a lot of them and they’re ”cheap”. Priced out of being able to afford a whole bitcoin, many first-time investors are setting their sights lower.
Expensive Bitcoin or Cheap Altcoins?
As experienced traders will aver, the best time to buy altcoins is when bitcoin is stagnating. When bitcoin is rocketing or plummeting, the altcoin markets tend to suffer, as money flocks into BTC or back into fiat. In the last few weeks, however, as bitcoin has moved sideways, altcoins have soared. At times, every single cryptocurrency in the top 100, save for bitcoin, has been in the green, as altcoin markets, which have been starved of attention for months, have enjoyed an influx of capital.
Established altcoins such as litecoin and monero have fared well amidst the flood of new money, but it is the smaller priced coins that have benefited the most. The biggest winner this month, up a staggering 3,600%, is verge, but tron (1,600%), and reddcoin (1,450%) have also prospered. What’s telling is that despite their astronomical gains, none of these coins costs more than 4 cents.
Newcomers to the cryptocurrency space are faced with a quandary: to spend months chipping away until they finally acquire a whole bitcoin (assuming it doesn’t rise faster than they can buy) or to snap up a cheap coin and become an instant thousandaire.
“I’m a completist,” one cryptocurrency trader told news.Bitcoin.com. “It actually bugs me seeing fractions of a coin in my Blockfolio [cryptocurrency app]. This might sound silly, but it just looks better seeing hundreds of coins in there. Buying tiny pieces of a bitcoin is quite demoralizing, because you’re spending a lot of dollars, but your BTC balance is barely moving.”
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