Did you buy the dips? What’s on your crypto altcoin list?
The trend emerging this year in crypto investments is clear — investors, both new and experienced, are eyeing altcoins to invest in. As digital currencies continue to storm the headlines, the newer, smaller cryptocurrencies are gaining some serious steam.
A quick search on Investopedia reads, altcoins are the other cryptocurrencies launched after the success of Bitcoin. If you head to CoinMarketCap or CoinGecko, there are thousands of altcoins and it can be difficult to know which ones to bet your money on.
To help cut through the noise, I am listing five projects (plus a few bonus ones) that I invested in during the recent crypto crash. The cryptocurrency market dipped sharply last week and the popular sentiment among investors was ‘Buy the Dips’. Like most investors, I upped my investment in few of the projects I had already invested in and added new gems to my portfolio.
LUNA has been getting a lot of attention in the past couple of weeks and is currently the 11th most valuable cryptocurrency by market cap.
Priced at $41.90 at the time of writing, LUNA has appreciated by 29.20% in the last 7 days, according to CoinMarketCap.
Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems. Development on Terra began in 2018 and the mainnet was officially launched in April 2019.
I invested in LUNA when it crossed the $30 mark after a colleague recommended it and it has been climbing the charts steadily since. Things look promising for LUNA as they have the rollout of Colombus 5 slated for late September. The update will simplify the stablecoin swapping process and introduce burning, enabling LUNA stakers to benefit through swap fees.
One of my largest crypto holdings this year is Cardano and like all the ADA investors, I am waiting in anticipation for the Alonzo hardfork on September 12.
Early September, ADA surged past the significant $3 mark, setting a new all-time high and cementing its position as the top three cryptocurrency according to market capitalization.
Cardano is a decentralized protocol that is pegged to take over Ethereum as its mainnet hard fork will bring smart contract functionality to Cardano, setting the stage for decentralized apps knows as dApps to go live on the platform’s blockchain.
The Cardano community is optimistic about the Alonzo upgrade and ADA has managed to hold on to its bullish momentum during the recent downturn.
Another currency that is a big part of my personal crypto portfolio and also on my to-buy list during the dips is Ethereum. As Ethereum is one of the widely spoken blockchain projects, I will keep it brief.
Institutional investors are leaning towards ETH over BTC because of the impending Ethereum2.0 as it will introduce Proof of Stake. Institutions prefer Proof of Stake blockchains as it is easy for them to buy their way in and use their voting power to change them to their liking.
The transition to ETH2.0 is slated to happen around end of 2021. Ethereum has multiple factors to make it a lucrative investment, including ETH deflation, growing adoption of Ethereum blockchain, the increasing institutional interest and the transition to Proof of Stake consensus.
If there is one currency I regret not buying in early, it has to be Solana.
Like ADA, SOL continued to move upwards despite the current market downturn. At the time of writing, it stands at $178.80 and is the sixth most valued cryptocurrency.
Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide DeFi solutions. What makes Solana significant is that its currently one of the fastest cryptos on the block now, with its claim to process at least 50,000 transactions per second (TPS) at a cost of less than $0.01 per transaction, matching the transactions via traditional payment processor like Visa or Mastercard.
Let’s not forget that Solana has raised $314 million in a funding round with investors including Mr Bankman-Fried’s Alameda Research, venture capital firm Andreessen Horowitz, Polychain Capital and CoinShares in June. Major players like FTX and Jump are viewing Solana as a potential concept. Their foray into the world of NFTs in August with Degenerate Ape Academy selling 10,000 apes in the first 10 minutes was phenomenal considering users needed the native currency SOL to buy these apes.
Although I do not own any SOL at the moment, it has been added to my cart to be bought once the price drops.
The cryptocurrencies in the smart contracts space have been gaining the most mileage among individual and institutional investors.
Avalanche is a hub for launching decentralized finance (DeFi) applications, financial assets, trading and other services on the blockchain. The platform claims to settle smart contracts on the Avalanche network in as little as one second.
The blockchain is seen as a solution for those seeking faster transactions per second and fed up with Ethereum’s slower transaction speed. The AVAX Token is the method of payment for Avalanche and is used for fee collection during transactions. AVAX can be staked to earn passive income on the network.
The Avalanche network burns a portion of its transaction fees, so overtime its supply will decrease causing more scarcity and value appreciation. AVAX looks like a promising token to add to the cryptocurrency list for 2021.
Bonus: The other currencies worth researching are VeChain (VET), ChainLink (LINK), Uniswap (UNI), Polkadot (DOT) and social token like Rally (Rally).
(Disclaimer: This is not a financial advice. As with any investment, do your own research before putting your money in).
Which altcoin occupies a majority portion of your cryptocurrency portfolio? Leave a comment below to share with us!