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Underneath the umbrella of “Cryptocurrency”, several branching types attempt to claim better than others. These types have their counterparts but they all have their own strengths and weaknesses.

First, let us give you some quick definitions about them. 

1. Stablecoin

A form of cryptocurrency that has its value linked to an outside source such as the American dollar or Gold.

2. Altcoin 

This is an abbreviation meaning “Alternative to Bitcoin” and represents all cryptocurrencies that aren’t Bitcoin. Some well-known Altcoins include Ethereum, Litecoin and Dogecoin.

3. Bitcoin

Bitcoin is the oldest form of cryptocurrency and still dominates the entire crypto industry with an impressive 79% market share.

Strengths:

1. Stablecoins 

• Reliability. It won't suffer any sudden drops. 

• Safety. It is usually attached to a larger source. 

• Consistency. Will remain around the same price. 

2. Altcoins 

• Room to grow

• If Bitcoin fails, they are there as a backup.

• Unique functions such as Ethereum, which is also a developer platform.

3. Bitcoin

• Name value.

• Price has been consistently high in recent years.

• Longevity due to its halving events.  

Weaknesses:

1. Stablecoins

• No chance of a massive spike.

• Locked to an outside source.

• Seen as more of an investment than a coin.

2. Altcoin

• Less name value. 

• Overshadowed by Bitcoin.

• Second choice for most investors.

3. Bitcoin

• Extremely volatile

• The difficulty of mining has increased with recent halving events.

• Mining market dominated by Bitcoin farms in places like China.

Out of these three, which is the better choice?

It comes down to what kind of person you are. These three types have different requirements and different levels of commitment.

Stablecoins require very little monitoring as they're usually saddled with a much bigger outside source. For example, if you buy Tether unless something big happens to the economy. You will not need to monitor it every day. While if you invest in Bitcoin, to make any profit, you need to continually monitor the market for any signs of a spike or dip.

Altcoins are the middle ground here and are the usual go-to for new investors. Their price of entry is usually attainable and affordable for the average person.

If you are a newcomer to the crypto game and want to know which is best for you, then we suggest starting small with an Altcoin. Our recommendation would be Ethereum. It is a reliable cryptocurrency and is backed by big companies such as Microsoft. It is also expected to spike in price next year so now is the best time to invest in it, even if it is just a little to start with.

All cryptocurrencies are different, so it is important to choose the one that will match you. That way you can optimize your potential profits and save yourself a lot of time and heartache.

Always remember that there are inherent risks with any crypto you invest in, regardless of the type. So, do plenty of research before investing in anything.

To track how your chosen crypto is going, use our crypto tracker in our main page.