How much does Bitcoin affect other cryptocurrency?

[jrrsparkles]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

Just take out USDT out of this equation because its centralized and stable currency so in 12 months theit actual value will be 4 or 5% lower due to inflation.

Now let's consider the actual cryptocurrencies which doesn't have stable value and the value is determined by demand and supply then each is unique and there is no necessary to follow each other but most often we can see when BTC goes up ETH, and other shitcoins goes up too because of people and their emotions furthermore the price change of BTC is not precisely proportional with ETH so there is difference and only time will tell what will be their actual growth in the next 12 months.

[Josefjix]

This is a simple question and clear understanding with observation as we all believe in virtual money, which Bitcoin is the driving force of other cryptocurrency market, any moment Bitcoin dipped in the market, it affects other alt-coins instantly, so Bitcoin affect other alt-coins through price changes either negative or positive, Bitcoin is the reason why cryptocurrency market been active today in the cryptocurrency industries.

Bitcoin increased market liquidity, compelling most projects to follow in its tracks because it is the premier project that has gained popularity around the world. It's a strong concept with greater potential for future applications; we should only invest carefully in bitcoin if we want to stay in the crypto market. Bitcoin's simple presence in the market has an impact on other cryptocurrencies because it is just one of the leading coins in the field with a big trading volume. Altcoins such as ETH bend to follow bitcoin's dramatic up and down movement. If bitcoin falls, it falls as well, and vice versa.

[raumonds]

 It's like they're playing follow the leader in the crypto playground. Bitcoin takes the lead, and others often tag along. Investing in different cryptos diversifies your portfolio, so you can enjoy the dance moves of each coin.

[tjtonmoy]

Market sentiments is the key between price movements, which shows some kind of connection between Bitcoin and other cryptocurrencies. As bitcoin is the most well known currency in the world, and it is on the top of every list, its price movements can have a great impact on all over the crypto market. So all that leads to is sentiments over the market. But there is no such connection between any cryptocurrency. They all have their own type of functionality and ecosystem.

[Silberman]

Market sentiments is the key between price movements, which shows some kind of connection between Bitcoin and other cryptocurrencies. As bitcoin is the most well known currency in the world, and it is on the top of every list, its price movements can have a great impact on all over the crypto market. So all that leads to is sentiments over the market. But there is no such connection between any cryptocurrency. They all have their own type of functionality and ecosystem.

It is also important to take into account the dominance bitcoin has over this market, right now it has a dominance of 44%, however if we discard the fake market cap many coins have, stable coins and other centralized projects, then we will soon find out that bitcoin has a dominance over this market way higher than expected, so it is natural that if the price of bitcoin begins to go down the the rest of the altcoins also follow bitcoin and begin to go down as well.

[DiMarxist]

Bitcoin is the reigning coin and almost all investors, enthusiasts or traders prefer to enter the niche of this coin and invest in it. Even people who have invested in other crypto coins still have their base with crypto, having some coins to purchase there and sell off. Cryptocurrencies, like bitcoin, opened our eyes to the possibilities of decentralization and the downsides of centralized systems. Traders can trade futures and speculate on the future price movements of cryptocurrencies. Market sentiments is the key between price movements, which shows some kind of connection between Bitcoin and other cryptocurrencies.

[fauzan Ichsan]

Bitcoin is the reigning coin and almost all investors, enthusiasts or traders prefer to enter the niche of this coin and invest in it. Even people who have invested in other crypto coins still have their base with crypto, having some coins to purchase there and sell off. Cryptocurrencies, like bitcoin, opened our eyes to the possibilities of decentralization and the downsides of centralized systems. Traders can trade futures and speculate on the future price movements of cryptocurrencies. Market sentiments is the key between price movements, which shows some kind of connection between Bitcoin and other cryptocurrencies.

we know the dominance of bitcoin market capitalization which is of course almost half of the total thousands of existing altcoin market capitalization. From there, of course, we can imagine that it is not strange that bitcoin has the influence of market movements on other altcoins, so that it can be used as a formula for making transactions on altcoins, because the movement follows Bitcoin.

[crunck]

Simply put, this market is created by bitcoin, bitcoin is the pioneer cryptocurrency and is considered the safest to date. After all, other altcoins are all improved copies of bitcoin, but they are nothing more prominent or reliable than bitcoin. So bitcoin will continue to dominate this market. But over time, I think this dominance will decrease, years ago, bitcoin dominance was more than 80%, in recent years, that number is only 40-50%.

[Bushdark]

Market sentiments is the key between price movements, which shows some kind of connection between Bitcoin and other cryptocurrencies. As bitcoin is the most well known currency in the world, and it is on the top of every list, its price movements can have a great impact on all over the crypto market. So all that leads to is sentiments over the market. But there is no such connection between any cryptocurrency. They all have their own type of functionality and ecosystem.

It is still very clear to us that Bitcoin have so much effect on other Cryptocurrencies which could be surprising to many of us that can tardets and investors. When Bitcoin falls, we do see that other cryptocurrencies in the market are falling too. When Bitcoin go higher in price, we do see that even the weakest coin will go up due to the bull movement that Bitcoin had created.

 This had been happening for many years and we may still be surprised or not that clear why the market is doing that. Many altcoins projects are always pumping there prices so that investors can see opportunity to make gain and for those that may not be aware of the spike, they might think that the price of that coin will increase gradually and might be tempted to buy more.

[tjtonmoy]

~snip

Newbies make this kind of mistake the most. Bitcoin is growing because it is decentralized. Other currencies are centralized. This is why how much potential they show, they can not go over Bitcoin. Thinking that every cryptocurrency will go up with Bitcoin's price pumping is a misunderstanding amongst newbies. There are other coins which I have seen showed potential when the Bitcoin price was declining.  Maybe some trend, maybe market sentiments, who knows? That actually proves that not everything is connected with Bitcoin. But the fact that Bitcoin is the most recognized currency in Crypto world, its price movement actually have an impact over the whole Crypto market.

[dansus021]

YEah bitcoin is like a king of crypto or just simply like Mr Powell's speech when Mr powel said want to raise interest rate the whole market stock commodities forex and government bond is moving various movement. it happen to bitcoin to and its different you can simply invest on bitcoin and forget about it or try more volatile asset on altcoin so if bitcoin up the altcoin can up 2x percent than bitcoin vice versa.

[aylabadia05]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

Total volume of Bitcoins with altcoins so the Returns that make the difference between investing in Bitcoins with altcoins or USDT.
I am more inclined to judge that investing in altcoins may not get a large return because the number of altcoin supplies is very large. This is different from USDT, which is relatively stable, allowing people to only accumulate money if they choose USDT.

Investors prefer the long term to Bitcoin although there are those who prefer big altcoins like Ethereum.
Making an equation on Bitcoin with the types of crypto that exist today will not be the same even though crypto always follows the movement of the rising or falling price of Bitcoin.

[Marvell1]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

Total volume of Bitcoins with altcoins so the Returns that make the difference between investing in Bitcoins with altcoins or USDT.
I am more inclined to judge that investing in altcoins may not get a large return because the number of altcoin supplies is very large. This is different from USDT, which is relatively stable, allowing people to only accumulate money if they choose USDT.

Investors prefer the long term to Bitcoin although there are those who prefer big altcoins like Ethereum.
Making an equation on Bitcoin with the types of crypto that exist today will not be the same even though crypto always follows the movement of the rising or falling price of Bitcoin.

I'm sorry, but I won't agree with your argument. Supply is just one of many factors that help bitcoin increase in price, creating a coin with a limited supply is not difficult. Limited supply plus high demand, when demand exceeds supply, then can cause the price of that coin to spike. Take a look at ETH, it has an unlimited supply, but it is undeniable that the return it brings to investors is not inferior to bitcoin.
Furthermore, investing in bitcoin these days cannot yield better returns than investing in altcoins. Since the altcoin market is a pumping and dumping playground, it does not need to depend on supply or technology, but its value depends on pumping, its returns will sometimes be higher than bitcoin brings. But in the long run, altcoins will never be safer than bitcoin, stay away from altcoins if you want to invest long term.

[Smack That Ace]

Holding USDT and staking for profit is your choice, I can't ban you or give advice because I'm not sure I'm better than you. But I just want to remind you, Binance is the biggest exchange, but that doesn't mean it's safe and you can completely trust them. They will be safe until they go bankrupt and your assets disappear without notifying you. It is a risk when we use centralized services, I hope you are aware of that. Instead of staking, I will hold bitcoin for the long term, and I believe the return will be much better than staking, and my assets are also safer.

Everyone has their own choices. it will be their responsibility when there are some losses or something like that.
Binance is a CEX platform that is currently widely used by crypto users including me, but it is necessary to be aware of the dangers that always surround it because nothing is safe even though Binance is the top exchange.

Risking and holding USDT is a fairly safe option, but holding Bitcoin for the long term can be a recommendation for those who want to invest long-term.
I have some Bitcoin in my personal wallet and it's safe enough without anyone else being able to reach it.
But it all comes back to your own choices, the risks will be borne by yourself.

I am also using Binance, but we need to use it for the right purpose, not overdo it or trust it completely. Binance or any centralized exchange is used for buying, selling, and exchanging, not a place for us to trust to store our money on it for a long time. And staking has been one of our asset storage services for a long time before making a profit. But you're right. It's his choice anyway, we don't have the right to tell him what to do and what not to do.

[S A KHAIR]

It's like they're playing follow the leader in the crypto playground. Bitcoin takes the lead, and others often tag along. Investing in different cryptos diversifies your portfolio, so you can enjoy the dance moves of each coin.

Investing in altcoins can be seen as portfolio diversification. But you need to know that it will not reduce your investment risk because, as you said, it all depends on bitcoin. If bitcoin falls then no altcoin can rise. But diversifying with altcoins that can maximize their returns grows unevenly. Bitcoin can go up 100%, but many altcoins can increase by several thousand percent.

[tygeade]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

Total volume of Bitcoins with altcoins so the Returns that make the difference between investing in Bitcoins with altcoins or USDT.
I am more inclined to judge that investing in altcoins may not get a large return because the number of altcoin supplies is very large. This is different from USDT, which is relatively stable, allowing people to only accumulate money if they choose USDT.

Investors prefer the long term to Bitcoin although there are those who prefer big altcoins like Ethereum.
Making an equation on Bitcoin with the types of crypto that exist today will not be the same even though crypto always follows the movement of the rising or falling price of Bitcoin.

I think preferring big names are fine. I have most of my investment in bitcoin as well but I also have a lot less in other stuff too ,like I have ETH worth half of what my btc worths, but it is there and I trust that it will do fine and BNB that is nearly half of my eth levels as well and equal amounts in LTC as well.

These are my big four investments and I will trust them to the moon and back. I know that many people see it differently and not like this but that is my approach and if I am wrong then I do not wan to be right about anything else. People can trust all those low rank cap stuff so they can get rich quick but I do not want to be part of that and I am fine about the current situation of my portfolio and has always been bringing me profit during bull periods.

[aylabadia05]

I'm sorry, but I won't agree with your argument. Supply is just one of many factors that help bitcoin increase in price, creating a coin with a limited supply is not difficult. Limited supply plus high demand, when demand exceeds supply, then can cause the price of that coin to spike. Take a look at ETH, it has an unlimited supply, but it is undeniable that the return it brings to investors is not inferior to bitcoin.

It doesn't matter if there are different views on seeing the difference because I also don't equate all types of altcoins.
Ethereum can still be expected to return by investors who choose it, but other altcoins may not be like Ethereum.

Furthermore, investing in bitcoin these days cannot yield better returns than investing in altcoins. Since the altcoin market is a pumping and dumping playground, it does not need to depend on supply or technology, but its value depends on pumping, its returns will sometimes be higher than bitcoin brings. But in the long run, altcoins will never be safer than bitcoin, stay away from altcoins if you want to invest long term.

Of course I thought that this was only temporary. This year it is clear that the market has not shown the movement we expected, including this May.
I would nod my head that stay away from altcoins in investing long term.

[smile1218]

Bitcoin can have a significant impact on other crypto currencies. This is because Bitcoin is often seen as a bellwether for the entire crypto currency market. When Bitcoin experiences significant price movements, it can cause other crypto currencies to follow its movement. Bitcoin's dominance in the market can cause the investors to shift their focus away from other crypto currencies. Finally, Bitcoin's network effects and widespread adoption can also impact the success of other crypto currencies.

[yazher]

Other altcoins are created for the purpose of getting the attention of bitcoin holders and they created some coins that are way too good than bitcoins in terms of their advancement, from the fast transaction to even lower payment for transaction fees, but there is only one thing that they cannot beat bitcoin, its decentralization. they failed to do so and they cannot do such a thing because if they sat unanimously, the mass won't gonna recognize their project and they will end up getting bankrupt because no one wanted to invest in them. that's why they choose their coins to be centralized even though they cannot beat bitcoins, they are getting some investors somehow.

[Marvell1]

I'm sorry, but I won't agree with your argument. Supply is just one of many factors that help bitcoin increase in price, creating a coin with a limited supply is not difficult. Limited supply plus high demand, when demand exceeds supply, then can cause the price of that coin to spike. Take a look at ETH, it has an unlimited supply, but it is undeniable that the return it brings to investors is not inferior to bitcoin.

It doesn't matter if there are different views on seeing the difference because I also don't equate all types of altcoins.
Ethereum can still be expected to return by investors who choose it, but other altcoins may not be like Ethereum.

When ETH was first launched and it was compared to bitcoin, many people were skeptical about the future of ETH, and they thought it was going nowhere. But the results have shown that many people are wrong not to trust ETH. For altcoins, finding a coin like ETH isn't easy, but that does not mean there is absolutely none. We wouldn't believe it until it happened and admitted that we were wrong.
Currently, altcoins are more for gambling than investing, but it can be seen that the market is getting bigger and bigger, and many projects are starting to get more serious about building their projects. I believe that with just a little more time, there will be many things worth reconsidering with this market.

Furthermore, investing in bitcoin these days cannot yield better returns than investing in altcoins. Since the altcoin market is a pumping and dumping playground, it does not need to depend on supply or technology, but its value depends on pumping, its returns will sometimes be higher than bitcoin brings. But in the long run, altcoins will never be safer than bitcoin, stay away from altcoins if you want to invest long term.

Of course I thought that this was only temporary. This year it is clear that the market has not shown the movement we expected, including this May.
I would nod my head that stay away from altcoins in investing long term.

Are you expecting a recovering and bullish market this year? If so, we have another look at the market. I'm happy with what's happening, even a little sad that bitcoin has recovered quite quickly in the first few months of the year.