How to Buy Cryptocurrency: Bitcoin vs Altcoins Explained
How to Buy Cryptocurrency: Bitcoin vs Altcoins Explained
Introduction
The world of cryptocurrency is buzzing with opportunity, but one question stumps nearly every beginner: Should I start with Bitcoin or try an altcoin? As you set out to learn how to buy cryptocurrency, understanding the differences between Bitcoin and altcoins isn’t just helpful — it’s essential.
Bitcoin may be the original and most recognized digital currency, but altcoins (alternative cryptocurrencies like Ethereum, Solana, and Cardano) offer intriguing — and sometimes riskier — possibilities. This guide breaks down the Bitcoin vs altcoins debate in a beginner-friendly, deeply researched format to help you make your first investment with confidence.
We'll explore:
- The core differences between Bitcoin and altcoins
- Pros and cons of each for beginners
- Real-world use cases and historical performance
- Which cryptos under $1 might “explode”
- Actionable guidance on how to buy safely
Whether you're considering dropping $100 or wondering what would’ve happened if you bought $1 of Bitcoin 10 years ago, this guide has you covered.
Bitcoin vs Altcoins: What’s the Difference?
What is Bitcoin?
Bitcoin (BTC) is the first and most valuable cryptocurrency, often called digital gold. Created in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin aims to be a decentralized store of value, immune to inflation and government control.
- Total Supply: Limited to 21 million BTC
- Primary Use: Store of value, hedge against inflation, cross-border payments
- Security: Highest level via Proof of Work (PoW)
“Bitcoin is not just a cryptocurrency; it’s a movement toward financial sovereignty.”
What are Altcoins?
Altcoins are all other cryptocurrencies that aren’t Bitcoin. These include:
- Ethereum (ETH): Smart contracts, DeFi, NFTs
- Solana (SOL): Fast, scalable blockchain for apps
- Ripple (XRP): Banking and cross-border settlement
- Cardano (ADA), Avalanche (AVAX), Polygon (MATIC) – Each solves specific blockchain challenges
Some altcoins mimic Bitcoin, others offer entirely different use cases or innovations.
Pros and Cons of Buying Bitcoin First
Advantages of Starting with Bitcoin
- Market Leader: Most widely adopted, trusted, and capitalized.
- Lower Volatility (relatively): More stable compared to newer altcoins.
- Liquidity: Easy to buy/sell on every major exchange.
- Long-Term Track Record: Over a decade of performance data.
Disadvantages
- Lower Short-Term Gains: Less likely to “10x” quickly.
- No Smart Contracts or Utility: Designed mainly as digital money.
- High Price Per Coin: While you can buy fractions, the price tag can intimidate newcomers.
“If you're seeking security and long-term value, Bitcoin is the most conservative crypto play.”
Should You Buy an Altcoin Instead?
When Altcoins Might Be Better for Beginners
- Innovation-Driven: Many altcoins offer exposure to new technologies like DeFi, NFTs, and Web3.
- Lower Entry Costs: Many are priced under $100 — or even $1.
- Growth Potential: The right altcoin can deliver exponential returns.
But Beware the Risks
- High Volatility: 20–50% price swings are common.
- Project Risk: Some altcoins die out or get delisted.
- Less Security: Smaller blockchains can be more vulnerable to attacks.
Is it Better to Invest in Bitcoin or Altcoins? (PAA Answer)
It depends on your goals.
- For stability and long-term growth, Bitcoin is the better choice.
- For higher risk-reward and exposure to cutting-edge tech, consider altcoins — but diversify.
Recommended Strategy for Beginners:
💡 Start with 70% Bitcoin, 30% in top-tier altcoins like Ethereum or Solana. Avoid meme coins or unproven tokens early on.
What If I Bought $1 of Bitcoin 10 Years Ago? (PAA Answer)
Let’s crunch the numbers:
- Bitcoin Price in May 2015: ~$240
- Bitcoin Price Today (May 2025): ~$67,000
- Growth: ~$1 would now be worth $279
- That’s a +27,800% return
“While history doesn’t repeat, it rhymes. Early believers in strong projects tend to win big.”
Of course, this growth isn’t guaranteed again — especially not with newer coins — but it shows what conviction and patience can do.
What Crypto Under $1 Will Explode? (PAA Answer)
Several cryptos under $1 are gaining attention for their strong fundamentals and potential:
| Coin | Price (as of May 2025) | Why It Has Potential |
|---|---|---|
| XRP | ~$0.52 | Fast settlement, real-world banking partnerships |
| VeChain (VET) | ~$0.035 | Supply chain use cases |
| Shiba Inu (SHIB) | ~$0.000023 | Speculative, meme-driven, but active dev team |
| Algorand (ALGO) | ~$0.18 | Institutional-grade blockchain with speed |
| Hedera Hashgraph (HBAR) | ~$0.09 | Enterprise partnerships, strong tech |
Warning: Low prices don’t equal value. Always research team, use case, adoption, and roadmap.
How to Buy Cryptocurrency: Step-by-Step for Beginners
Step 1: Choose a Trusted Exchange
- Top picks: Coinbase, Binance, Kraken, Gemini
- Look for strong security, low fees, and easy UI
Step 2: Verify Your Identity (KYC)
Most exchanges require ID verification before you can trade.
Step 3: Fund Your Account
Use a bank transfer, debit card, or PayPal (varies by exchange).
Step 4: Decide Your First Purchase
- Bitcoin for stability
- Ethereum/Solana for smart contracts
- XRP/VET/ALGO if exploring altcoin territory
Step 5: Make Your Purchase
- Choose market or limit order
- Buy fractional amounts — even $10 is enough to start
Step 6: Move to a Wallet (Optional but Safer)
- Use a software wallet (e.g., Trust Wallet, MetaMask)
- For higher security, use a hardware wallet (e.g., Ledger)
Bitcoin vs Altcoins: Side-by-Side Comparison Table
| Feature | Bitcoin (BTC) | Altcoins (ETH, SOL, etc.) |
|---|---|---|
| Age | Oldest (2009) | Newer, post-2011 |
| Purpose | Store of value | Utility, innovation |
| Risk Level | Lower | Higher |
| Growth Potential | Moderate | High (but speculative) |
| Developer Activity | Consistent | Highly active |
| Regulatory Scrutiny | High | Increasing |
| Ideal For | Beginners, savers | Tech-curious investors |
Common Mistakes Beginners Make
- Buying random altcoins on hype
- Skipping research or whitepapers
- Using unregulated exchanges
- Storing large amounts on hot wallets
- Investing more than you can afford to lose
“Crypto rewards research, patience, and risk management — not gambling.”
Final Thoughts: Which Should You Start With?
If you’re serious about learning how to buy cryptocurrency wisely:
- Start with Bitcoin to learn the basics and get comfortable with crypto systems.
- Layer in quality altcoins as you build knowledge and risk tolerance.
- Avoid meme coins and FOMO-driven plays until you can confidently assess risk.
Think of Bitcoin as your crypto foundation. Altcoins? Those are the upgrades, innovations, and calculated risks.
Ready to Start Your Crypto Journey?
If you’re ready to buy your first cryptocurrency, our friends at CryptoCrafted have the perfect beginner guide.
👉 Learn how to buy cryptocurrency step-by-step and start investing smartly today.