Altcoins Pros and Cons

Pros

  • Higher potential for greater ROI
  • They have low transaction fees
  • Legitimate altcoin projects add new value and functions to cryptocurrencies
  • Many altcoins utilize more efficient consensus algorithms than Bitcoin
  • Some altcoins feature highly scalable blockchains.

Cons

  • Increased risks of volatility
  • High potential for scams and fraud
  • Altcoins with small market caps and limited liquidity face increased risks of market manipulation

I think this one needs repeating, especially to those entering the market for the first time. It’s impossible to know just how many “whales” are involved in the daily volume of a given alt. First mover advantage is an understatement, and a single holder can manipulate an alts price all on his/her own.

I find Altcoins as a great alternative to Bitcoins. They make great options for alternative savings, trading and even spending. I have recently invested in some altcoins and will increase my investments if I get good results.