Bitcoin's Rally Surpasses Altcoins
Bitcoin has experienced a remarkable surge of 153% over the past year, outperforming numerous other digital currencies. However, when comparing the performance of the top cryptocurrencies against bitcoin, the annual shifts present a diverse perspective.
Ethereum's Decline Against BTC
Despite witnessing a 95% surge this year, Ethereum (ETH) has seen its value diminish compared to bitcoin. ETH decreased from 0.07237 BTC to 0.05432 BTC, resulting in a loss exceeding 24% against bitcoin, which remains the leading cryptocurrency in terms of market capitalization.
BNB and XRP also Experience Declines
Binance Coin (BNB) and XRP have also suffered losses relative to BTC. BNB fell from 0.0146 BTC to 0.007219 BTC, losing 50.55% of its value against bitcoin. XRP experienced a decline of approximately 30%, descending from 0.00002096 to 0.00001462 BTC.
Solana's Impressive Surge
In contrast, Solana (SOL) has experienced a significant ascent, boasting an 877% surge against the dollar and an impressive increase of over 257% against BTC. Within a year, SOL escalated from 0.0006985 BTC to the current 0.002496 BTC.
Cardano and Avalanche's Performance
Cardano's ADA saw a modest decrease of approximately 6.54%, dropping from 0.00001544 to 0.00001443 BTC per unit. Meanwhile, Avalanche (AVAX) emerged as another notable contender, marking a 43.55% increase against bitcoin over the year, rising from 0.0007008 BTC to 0.001006 BTC.
DOGE and Polkadot Face Setbacks
DOGE faced a notable setback, losing 52.79% against BTC, falling from 0.000004591 BTC to 0.000002167 BTC per unit over the past year. Polkadot (DOT) also saw a reduction, moving from 0.0002659 BTC to 0.0002074 BTC, a 22% decline over the same timeframe.
BTC's Dominance and Altcoin Season
As of December 2023, BTC's dominance has risen to around 50% from December 2022's 39.9%. Additionally, blockchaincenter.net's Altcoin Season Index indicates that an "Altcoin Season" may be approaching, with a score of 67. According to the index, if 75% of the top 50 coins outperform bitcoin over the last season (90 days), it is officially considered Altcoin Season.
What are your thoughts on the performance of the top coins against bitcoin over the last 12 months? Share your opinions in the comments section below.
Frequently Asked Questions
What is the best precious-metal to invest?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. If you are looking for quick profits, gold might not be the right investment. Silver is a better investment if you have patience and the time to do it.
If you don't care about getting rich quickly, gold is probably the way to go. If you want to invest in long-term, steady returns, silver is a better choice.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. This type of investment has its downsides.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
Another disadvantage is that you must pay fees to manage your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
Insurance is necessary if you wish to keep your money safe from the banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. Insurance that covers losses upto $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit how many ounces you can keep. Others let you pick your weight.
You'll also need to decide whether to buy physical gold or futures contracts. Physical gold is more expensive than gold futures contracts. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does offer coverage for natural disasters. You might consider purchasing additional coverage if your area is at high risk.
Apart from insurance, you should consider the costs of storing your precious metals. Insurance doesn't cover storage costs. For safekeeping, banks typically charge $25-40 per month.
You must first contact a qualified custodian before you open a gold IRA. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians are not allowed to sell your assets. Instead, they must keep your assets for as long you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. You should also specify how much you want to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. Once the company has received your application, they will review it and send you a confirmation email.
When opening a gold IRA, you should consider using a financial planner. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help you find cheaper insurance options to lower your costs.
Can I buy gold with my self-directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts can be described as financial instruments that are determined by the gold price. These contracts allow you to speculate on future gold prices without actually owning it. However, physical bullion is real gold or silver bars you can hold in your hands.
How much of your portfolio should be in precious metals?
To answer this question, we must first understand what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
There are also many other precious metals such as platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also relatively unaffected both by inflation and deflation.
In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. Because they are rare, they become more pricey and lose value.
Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
What's the advantage of a Gold IRA?
Many benefits come with a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This makes for an easy transition if you decide to retire early.
The best thing is that investing in gold IRAs doesn't require any special skills. They're available at most banks and brokerage firms. Withdrawals are made automatically without having to worry about fees or penalties.
There are, however, some drawbacks. Gold has always been volatile. It is important to understand why you are investing in gold. Are you looking for safety or growth? Are you trying to find safety or growth? Only then will you be able make informed decisions.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce will not be sufficient to meet all your requirements. You may need several ounces, depending on what you intend to do with your precious gold.
You don't need to have a lot of gold if you are selling it. Even one ounce is enough. But you won't be able to buy anything else with those funds.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
