If you review the best performers in a day, week, month, it is almost always an altcoin that you've probably never heard of.
These coins fly up and down in value, normally being manipulated for few people to profit whilst many lose, and will eventually fade down to nothing.
For the technical analysts amongst you, Bitcoin halving events have a clear pattern which shows that this halving event could lead to highs of $100,000 dollars within the next 18 months, eventually settling around $35,000 within 24-36 months. Whether this happens or not is a completely different story although I do believe in Bitcoin fundamentals and that they will continue their dominance of the crypto space for at least the next 5 years so I'm working to these numbers for my personal wealth strategy.
This rise from current price (approx. $7,700) would represent a 354% increase in your hodl-ing. By all investment classes, this is a great result.
However, altcoin success stories far exceed these numbers. A cryptocurrency called Verge increased by over 1,500,000% in the 2017 bull run. Now it's current price is back down to $0.0029 and a re-run to all-time high would bag you 10,000%, but history would have to repeat itself exactly and you'd have to time your exit absolutely perfect, which is very unlikely to happen. Plus, as privacy coins go, it won't be the one that is going to have long-term, mainstream use.
So in this short article, I've put three coins below which I believe are not only great long term HODL options, but are also likely to significant hike up in price over the coming year from the halving event:
1 - Cardano (ADA) £0.0369
Price correlation with Bitcoin - 98%
Expected 12-18 month return - 2500-3000%
Cardano is a top 15 market cap coin, and of those 15, it is currently the lowest in value. This shows the amazing amount of support this has and the huge potential available. It also gives anyone an easy access to a good volume of coins even if you just want to put a small amount of cash in.
Cardano is a decentralised platform that will allow complex programmable transfers of value in a secure and scalable fashion. It is reportedly the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. They are developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed, with the most rigorous academic and commercial software standards in the industry. It will use a democratic governance system that allows the project to evolve over time, and fund itself sustainably through a treasury system.
2 - VeChain (VET) £0.0035
Price correlation with Bitcoin - 98%
Expected 12-18 month return - 2000-2500%
VeChain aims to enhance supply chain management by connecting blockchain technology with the real world through 'a comprehensive governance structure, a robust economic model, and advanced IoT integration.
The last point there about the Internet of Things and solving a improving a massive real-world issue for nearly any industry is what makes this an incredible prospect for enormous growth. I think this has the potential to be the first mainstream wealth creator. Unlike those stories about a random, extremely lucky, Bitcoin millionaire who bought $50 back in 2014, the future could hold tens of thousands of people who utilised VeChain to do the same.
Before I reveal the final pick, special mentions go to - Ontology, 0x and Stellar Lumens
3 - Neo (NEO) £6.82
Price correlation with Bitcoin - 97%
Expected 12-18 month return - 1500-2000%
The Chinese Ethereum - They are aiming to construct a digital economy complete with digital identities, assets, contracts, and payments. Neo wants to implement features like quantum-computing resistance and inter-chain operability. Neo's virtual machine code compiler is designed to support a sizable list of languages including: C#, Java, C, C++, GO, JavaScript, Python, and Ruby which in my eyes mean it is more open source than other similar blockchains.
Their initial token sale started on 8/8/2016 and so weren't around at the time of the last halving and this will be their first proper experience of a BTC halving which could mean seeing some exciting numbers. Although China are very strict with regulations and are fast approaching their own digital currency, this is the riskiest of the three choices.
Conclusion
I believe that sensible investment strategies in these assets will rewards those to choose to HODL in the short term (12-18 months), but also long term (3+ years). A good idea might be to sell 50% at the 12-18 month mark and leave the remaining until maturation. This is what I will be doing.
What do you think?
Do you think there are other coins that will do better?
Let me know in the comments.
