Experts and analysts that claimed that the crypto winter was over may need to rethink things as Bitcoin’s (BTC) price plummeted by 10% over the last twenty-four hours. This move was reflected throughout the cryptocurrency sector, but a few altcoins outperformed Bitcoin by managing to stay in a strong sellout position.
Whenever Bitcoin’s price falls, it is because traders sold their Bitcoin for some other asset, so it is important to know what assets they chose. We can see this through observing which altcoin performed well against Bitcoin.
Altcoins that performed extraordinarily are Binance Coin (BNB), Bitfinex’s LEO and Link that climbed over six percent (6.95%), over eight percent (8.46) and eight percent (8%) respectively.
In a standard market, you can minimise your risks by dividing your investments in different kind of stocks like technology, oil, etc. as each has its own price action what moves on its own pace and pattern.
However, it is rather difficult to do the same in the cryptocurrency sector as although Bitcoin and Ethereum may work their price action moves differently at the same pace and pattern and therefore it is useless to divide your investments.
People do invest in altcoins; however, it is not because they want to minimise their risks but rather because they like the project.
What is the common factor between BNB, Link and LEO?
Each of them is a native exchange token that means that they will be in demand even when traders are selling. Moreover, these tokens have strong utility as well.
While Link also has good relations with firms outside the crypto sphere as it enjoys key partnerships with Google and therefore its performance is also affected by factors outside the crypto markets that may balance or destabilise the crypto.
Experts predict that an alt-season is coming, but some cryptos will die before it is here.