Written By:
Jane Smith
Explore whether altcoins or Bitcoin offer better returns in 2025. Learn how market trends, use cases, and risk factors impact long-term crypto investments.
Cryptocurrency investing in the coming years will be more active and flexible than ever before. While people are most familiar with Bitcoin, altcoins are becoming more popular with every passing day. Learning about altcoins and studying their potential beside Bitcoin is necessary for those interested in portfolio diversification.
Bitcoin was the first cryptocurrency and was created in 2009 by Satoshi Nakamoto, a person whose identity remains unknown. The blockchain is a decentralized ledger that uses the proof-of-work method to confirm and approve transactions. Due to the fact that only 21 million Bitcoins exist, people see it as an investment against inflation and a form of storing value.
Altcoins are all cryptocurrencies other than Bitcoin. They include several projects, going from Ethereum and Solana to Cardano and Polkadot. Altcoins are often used to add value to Bitcoin by improving its weaknesses or introducing new functions such as smart contracts, decentralized applications or increased security against tracking.
While Bitcoin works as a decentralized digital currency, altcoins usually offer solutions to the issues or needs that Bitcoin does not cover. For example:
Since it was launched, Bitcoin has typically controlled over 60% of the whole cryptocurrency market. Because it was the first and quickly adopted by others, it holds the #1 place in the market today. However, with changes in the crypto market, Bitcoin’s dominance has fluctuated, mainly when altcoins grow in value and attract more attention.
Some altcoins have experienced significant growth and developed well. To illustrate, Ethereum’s recent Pectra update made it more efficient which in May 2025 resulted in a 45% increase in its performance. Investors are also interested in Solana and XRP, as these altcoins have shown impressive increases as well.
Bitcoin continues to register steady growth, though during some periods, other altcoins have performed better in percentage terms. As a result, interested investors can look to the best altcoins to buy to earn higher profits, though at a greater risk. Having a good sense of timing can help you earn a lot when participating in altcoins.
Bitcoin relies on a proof-of-work (PoW) system that makes miners perform intensive calculations to approve every transaction. Because of this, transactions are slower and use more energy than other systems. For this reason, the altcoin world has introduced new alternatives to proof-of-work.
Efforts to better altcoins’ efficiency and scalability have led many to use methods like proof-of-stake (PoS) or delegated proof-of-stake (DPoS). As an example, Ethereum is switching to PoS to help save energy and improve the number of transactions per second. This is a reason why altcoins are popular as modern alternatives to Bitcoin.
For cryptocurrencies to be widely adopted, they must be easy to scale. Where Bitcoin does about seven transactions per second, Solana and many other altcoins can do over 65,000 transactions per second. Due to their advanced capabilities, altcoins are often used in fields requiring lots of processing speed such as DeFi and gaming.
Bitcoin is mainly used as a way to store value, much like digital gold. Because its supply is limited and there is no central control, it becomes a popular choice for those saving wealth over the long term. Still, most people rely on cash or cards since using it takes longer and costs more.
Altcoins have pushed blockchain technology to new boundaries. DeFi platforms and NFTs are supported by Ethereum. As well as Bitcoin, polkadot and cardano are helping different applications by making them compatible and easy to scale.
Besides digital use, altcoins are being used in different areas of reality. As an example, VeChain is bringing changes to supply chain management through its trustworthy and unalterable tracking system. They prove that altcoins are capable of solving everyday challenges.
Cryptocurrencies are known for being quite unpredictable. Bitcoin prices rise and fall sharply, but altcoins face even bigger shifts because they have less capital and liquidity in the market. It is important to review the risk-reward structure before choosing the best altcoins to buy.
Bitcoin is easy to trade, even with large amounts, without causing much change in its price. On the other hand, some altcoins could have less liquidity, resulting in slippage in their trades. As a result, most of the top altcoins are available on better exchanges, making them easier for investors to buy.
Bitcoin and altcoins are not subject to the same levels of scrutiny by regulators. Bitcoin receives a positive reputation because there is no single authority behind it. On the other hand, certain altcoins are classified as securities which makes them subject to strict rules. It is very important for investors in crypto to be aware of new regulations.
More institutions like MicroStrategy and Tesla are investing in Bitcoin by including it in their portfolio. As a result of such statements, Bitcoin is now seen as a valuable long-term investment. The presence of these institutions offers confidence in the future success of Bitcoin.
Altcoins thrive thanks to their active and passionate communities inspiring new ideas and growth. Groups of developers are working on Ethereum and Cardano to add constant improvements. Communities are important for the growth and strength of altcoins in an already crowded crypto space.
Stories and news in the media have a big influence on cryptocurrency markets. A headline about good news in the market tends to make investors buy and lift prices, whereas negative information often causes selling. Stories in the news can affect Bitcoin and altcoins, so always research with care and think for yourself.
Bitcoin’s future improvements are aimed at increasing how many transactions can be processed and making them more efficient. The Lightning Network is a Layer 2 solution that works to ensure transactions happen more quickly and at lower costs. Such technological advances might help Bitcoin be used for daily payments, leading to greater usage.
In 2025, the best altcoins to buy will be those that have a solid base and provide new ways to use blockchain technology. Dawgz AI and Solaxy are becoming popular due to their novel AI and layer-2 scaling services. Reaching growth opportunities can also be achieved by monitoring such altcoins.
Analysts predict that “altcoin season” could occur in 2025, where altcoins may gain more in percentage than Bitcoin does. The change could be due to better technology, greater investment and those looking for greater returns. Being aware of the changes happening in the market helps you benefit from them.
Since Bitcoin provides stability and acceptance, it often forms the backbone of investment portfolios. At the same time, altcoins create possibilities for better rewards by using new technologies and supporting various applications. Including Bitcoin along with altcoins in one’s portfolio can help manage the risks and rewards.
Determining whether to invest in Bitcoin or other cryptos depends on how much risk an investor is willing to take and what they aim to achieve. To make the right choices, you must understand the definition of altcoins and check the best alternatives to buy. Having a balanced mix of cryptocurrencies is wise when dealing with the constantly changing cryptocurrency market.
Altcoins are cryptocurrencies other than Bitcoin, encompassing a wide range of digital assets with various functionalities and use cases.
Generally, altcoins are more volatile than Bitcoin, offering higher potential returns but also greater risk. Investors should assess their risk appetite before investing in altcoins.
While some altcoins may outperform Bitcoin in percentage gains over certain periods, Bitcoin's market capitalization and adoption make it unlikely for altcoins to surpass it in total value.
Consider factors like the project's use case, development team, community support, and market potential. Conducting thorough research is essential before investing.
Diversification can help manage risk and capitalize on different growth opportunities within the cryptocurrency market. Including both Bitcoin and select altcoins in your portfolio is a common strategy among investors.
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