Bullish For Long-Term Investment On Crypto

By ben06x | ben06x | 26 Jan 2022


Looking back to the past months/years we might be prepared for being hit by an important dump market/economic crisis. COVID-19 pandemic, government debts, surging inflation, Russia-Ukraine conflict with USA involved, global warming, food consumption and the number of people on earth, all these factors have to make you think about your future. Do you have a job that can be considered as a stable job? Do you have any resources other than your money in your bank struggling to reward you because of inflation rate? How will your retirement plan be, knowing that the youth mostly pay for it and that older people have to work longer for their retirement plans? Will there be an important dump market/economic crisis? The pattern in which everyone borrows money from banks with the money printer activated may not hold forever. You should be prepared for some answers to these questions or at least some studies on them, Do Your Own Research (DYOR)! One quick answer would be to spread or invest your funds in things that may build money instead of losing money: gold, silver, oil, natural gas, necessity goods, lands/buildings/houses, bonds and cryptocurrencies (with Dollar-Cost Averaging of course). In the field of cryptocurrency, commodity and foreign currency, one way would be through some exchanges, platforms on which you can buy, sell and speculate on price movements. One of them gathers all three fields mentioned into one place: BitYard.

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When wanting to get involved in crypto, you have to understand that, for now, Bitcoin is the leading crypto asset, it is the most expensive and can be considered as a wealth thanks to its supply scarcity. Around 40% of the crypto market capitalisation is on Bitcoin.

For long term holders, when you zoom out on the $BTC Chart for daily candle, you can find that there is a great support around the 28,000-31,000$ area, with a possible similar previous pattern repetition: 

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In addition to that a lot of institutions are now involved in crypto and particularly Bitcoin. Thus, many of them take advantage of Dollar-Cost Averaging buy method to fill their bags. For instance, MicroStrategy holds around 122,478 Bitcoin acquired at an average price of $29,861 each, confirming the previous support mentioned. Moreover, Relative Strength Index (RSI), indicator at the bottom of the chart, indicates that Bitcoin is currently being oversold. Consequently, when combining these factors, it may be possible for Bitcoin to sideway a bit before getting another leg up leading towards a new All-Time High near the upper blue line.

 

However, at the moment things are not that great. Considering the previous news mentioned and the following indications:

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A Head & Soulder pattern may exist, enhancing a bullish-to-bearish trend reversal. In addition to that, the resistance trend line (in white) keeps being in a downwards direction and seems to cross the support trend line (blue) 31,000$, which could lead to a reversal at this point.

 

So, what to think about the future of crypto this year? Well, in my opinion, for short-term period, trends seem to be a bit more bearish than bullish. However, I am very bullish on crypto for long-term period, which is for me from 2 to 10 years. Therefore, this is a great opportunity to accumulate as much crypto as can be afforded by Dollar-Cost Averaging buys. In the following post, assets that you may have heard about, but not very done research on, will be presented to you. In my opinions, these assets are really worth to look into and in addition to that, they are all present on BitYard!

 

 

What is BitYard?

 

BitYard is a Singapore-based cryptocurrencies derivatives exchange founded in 2019 that makes trading as easy as possible through a user-friendly interface while offering bunch of trading tools and indicators.

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In the platform it is possible to deal with:

  • Spot trading, to buy and sell an asset directly with other traders
  • Lite Futures and Inverse Perpetual, to speculate in USDT or cryptocurrency on the price fluctuation of an asset with leverage by borrowing funds
  • Commodities, also called derivatives, which consist of speculating on goods and services such as Crude Oil, Cooper, Gold and Silver 
  • Forex, to speculate on the fluctuation of a currency compared to another, for instance EUR/USD or GBP/USD
  • Copy trading, that allows to copy another trader’s trades autonomously
  • Buying cryptocurrency through a credit card

Moreover, daily mining is possible, in average around 0.20$ to 0.50$ may be earned each day and can be used to pay for fees when conducting trades on the platform. Finally, to facilitate the use of Bityard, the platform is available for Android and iOS users.

 

 

Trending Coins/Tokens Present On BitYard And Worth To Look Into

 

The crypto universe is filled with a bunch of projects and it is normal if you do not know all of them. In the following section, assets that you may have heard about, but not very done research on, will be presented to you with their major price support, which are really worth to look into.

 

Polkadot $DOT

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Principle

Founded in 2016 by Gavin Wood, former Co-Founder and CTO of Ethereum Foundation, Polkadot's purpose is very innovative, in fact, it positions itself as a platform for interoperability, scalability, and experimentation. While there are lots of great projects in the crypto universe, most of them are isolated and may not interact between one and another. What Polkadot does is solving the problem of interoperability by being one of the very first layer-0 solution connecting blockchains between each other. Without being too technical, we can enhance some features on Polkadot network: 

The Relay Chain is the center of the Polkadot network with many branches coming off it to exchange information and data. 

The Parachains are parallel sharded blockchains with proper use cases and can be considered as individual dots that can communicate with each other through the relay chain. Each parachain may have its native token to deal with its own tokenomic.

The Bridges link the relay chain with the parachains to achieve consensus and exchange transactions between the chains.

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$DOT Coin

Polkadot $DOT coin gives holders governance rights over the network. The blockchain relies on a Nominated Proof of Stake (NPoS) consensus mechanism, making $DOT holders nominating validators of the network and getting in return rewards. These validators have to stake $DOT to be eligible to secure the Relay Chain, and when validating blocks, rewards are perceived and redistributed to the nominators, with an APY around 10-14%.

Moreover, $DOT is used to be part of Polkadot network as a parachain through Parachain Slot Auctions. Slots on the Relay Chain are auctioned, and most of the time, a fundraiser is done by projects trying to integrate the network. That way, $DOT holders can use their coins to support the project they truly believe in and if the auction is won by the project, rewards are given back to the supporters, most of the time in the native token of the project. This may also be perceived as a new type of ICO when a project succeeds being a parachain. Moreover, a practice network, to conduct experiments before being launched as a parachain, exists, it is called Kusama.

 

$DOT is available on most of the major exchanges and particularly on BitYard.

 

Trending

$DOT is not just a coin, but more an investment opportunity to invest in layer-1 chains from their start. Polkadot is a truly, fresh and innovative idea that may tie lots of private and public blockchains together in the world of crypto. Suiting for interoperability, scalability, and experimentation, it can be one of the leading interconnected cryptocurrency ecosystem in the years to come. Finally, with the growth of its DeFi ecosystem and with the years to come, it may have a huge role to play in Web3 revolution. Therefore, its previous All-Time High of $54.98 may be overpass.

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Chainlink $LINK

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Principle

Chainlink, Ethereum based Network secured by a Proof of Stake consensus algorithm, was founded in 2017 as the product of a blockchain technology enterprise called SmartContract. It allows blockchains, in particular those supporting smart contracts, to access data outside of the blockchain they belong to. This is particularly useful when you have automated applications that are programmed to be executed according to some specific conditions in the real world. For that, node operators, called oracles, have the role of providing data onto Chainlink network. To do so, they have to lock $LINK, native token of the Chainlink network, to be considered as nodes. Locking their tokens forces them to deliver reliable and truthful data. Without being too technical, when someone or a blockchain requires off-chain data, a Request Contract with the information needed is set up on Chainlink network. Afterwards, a new matching smart contract known as Chainlink Service Level Agreement contract allows oracles to access data off-chain and create three subcontracts:

  • a Reputation Contract that evaluates the records of each oracle to determine its data authenticity performance. This way, it removes inaccurate nodes.
  • an Order-Matching contract that sends the Request Contract to the accurate oracles that place bids for successfully delivering the requested data.
  • an Aggregating contract that gathers, validates, sorts out and translates data provided by the oracles to on-chain language. 

Finally, the bids are paid to the oracles in $LINK by the data requester and this one can now on use the information collected to his own application.

 

$LINK Token

Native token of the Chainlink network, $LINK is an Ethereum-based token inheriting functionality from the ERC20 standard, while implementing additional functionalities. It is mostly used to pay for data request on Chainlink network and to be deposited by oracles to become nodes. The maximum supply of the token is fixed to 1,000,000,000 (1 billion) and as of today, around 467,009,550 $LINK are in circulation, representing around 47% of the total supply. The repartition of the token is as follow:

  • 35% for those helping to secure Chainlink's network and runnig nodes

  • 35% sold in public sales events

  • 30% towards the development of the Chainlink network ecosystem 

 

$LINK is available on most of the major exchanges and particularly on BitYard.

 

Trending

Chainlink allows blockchains, in particular those supporting smart contracts, to access data off-chain, which is very useful for blockchains that want to expend their utilities with conditions implemented in the real world. It would be very convenient with purposes like betting, gaming, enterprise systems, insurance and so much more. Therefore, with the growth of blockchains in the years to come, data demand onto Chainlink network may increase, making the previous All-Time High of $54.98 for $LINK token, being overpassed.

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Tezos $XTZ

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Principle

Motivated by governance issues in the crypto universe and especially the forking of blockchains such as Bitcoin and Ethereum, in July 2017, Tezos' Initial Coin Offering (ICO) raised around 230 million dollars, making it the most valuable ICO at the time, for introducing Liquid Proof-of-Stake (LPoS) consensus mechanism and the principle of evolving without the need of any hard fork. For that, we can enhance main features on Tezos network:

Transaction costs give crypto users less frustration regardless transaction fees onto Tezos network

Self-amendment and On-Chain Governance make updates easier for solving problems. For that, stakeholders reach agreement on proposed amendments.

Smart Contracts enables the development of decentralized applications and the creation of tokens onto the blockchain. 

Liquid Proof-of-Stake consensus mechanism gives holders rewards for participating in the blockchain development, by staking their coins with no lockup period required.

 

$XTZ Coin

Tezos $XTZ coin gives holders governance rights over the network while offering the possibility of earning rewards, for validating block on the blockchain, as a baker. To bake blocks onto the network, 8,000 $XTZ are required for staking for 1 roll. As a simple holder, it is also possible to delegate to a baker a part of the $XTZ held and get a portion of the blocks validation rewards, representing around 5-7 % APY.

$XTZ coin has no maximum supply and currently, around 874,238,341 coins are in circulation.

$XTZ is available on most of the major exchanges and particularly on BitYard.

 

Trending

Tezos self-upgradable blockchain has for purpose to evolve in the crypto universe to rapidly solve issue. Currently used for projects such as baking, DeFi, blockchain games and NFTs, Tezos ecosystem is not as widespread as the Ethereum or Binance one, but with its community currently working on strengthening and developing the network by providing more tools to its DeFi ecosystem, you may see more mentions of Tezos blockchain in the years to come.

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Monero $XMR

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Principle

In the first place, people turned to crypto mostly for true ownership, hedge against inflation and privacy. In the field of privacy, Monero is the leading blockchain dealing with private transactions, by concealing as much information as possible to keep privacy as high as possible. Monero Proof of Work blockchain is based on dynamic blocks mining that can be done using CPU in regular computers.

Basically, on a regular blockchain, anyone can monitor how many coins a public address has and the transactions made since the creation of that address, from funds received to funds sent, because these data are public. With Monero blockchain, no one can monitor a public address holdings and all transactions are mostly unlikable and untraceable. Without making it too technical, when transactions are made, random addresses are generated to reroute the sending funds so that the initial address is not directly linked to the receiving address. At the end, the sender and recipient addresses are not recorded into Monero ledger. Moreover, to strengthen the unlikable and the untraceable, Monero transactions between one sender and one recipient address can be randomly grouped with other senders and recipients address, to create complex mixed transactions. In addition to that, amount transferred can be split into multiple smaller amounts so that more separate transactions are realized, making the identifying process even more difficult.

 

$XMR Coin

When mining blocks onto Monero blockchain, in addition to the fees of the transactions, miners get rewarded with $XMR. Like Bitcoin, this amount decreased years after years until the circulation supply reached around 18 million of coins for Monero, and currently, around 0.6-0.8 $XMR is earned per block (see Reward Per Block). To be noticed that there is no fixed supply. 

$XMR is available on most of the major exchanges and particularly on BitYard.

 
Trending

In the first place, crypto was built to avoid banks and governments. Nowadays, more and more regulations are brought to crypto, leading to more taxes  and transactions history being shown and found. When using other blockchains than Monero, it is possible that, at one point, pseudo-anonymous transactions may get you in trouble and one way to deal with it would be to swap these other blockchains coins to $XMR coin, on decentralized exchanges, and swapping back to these previous blockchains on a brand new address, so that it significantly cut the ties of the history of your coins.

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Final thoughts

 

Bityard Donates to charity

By participating in this crypto outlook contest, by adding the hashtag TheGivingBlock, BitYard donates 50,000 SHIB through The Giving Block, platform for crypto fundraising towards nonprofit organizations such as charities, universities, or faith-based organizations! 

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MyCryptoOutlook

Rome was not built in a day, so as crypto. In the past two years, there were lots of adoption towards crypto, from individuals, companies and even countries, leading to a heavy bullrun! At the time of writing, we have suffered a dip since November, but this is how it goes, going down to reach even higher prices. It also seems that the stock market still influence crypto, but for how long? If you feel yourself uncomfortable when dips happen, zoom out on Bitcoin chart near December 2017, the price dropped from its All-Time High of around 19,000$, three years later, in 2020, the crypto adoption began, leading to newer impressive All-Time Highs. There will be more regulation towards crypto, but it will only slow a bit its growth, not stop it. There is so much to do in this universe, so much great project created and so much that we do not know yet. I roughly manage my FIAT money as follow: 45% for necessary needs, 40% for unknown events and when I can 15% in investments. When a dip occurs, I try to get as much information as possible to know what caused that dip. Is it because of a company that was not able to repay loans? A potential war? A SEC play? Or just whales trying to make prices decrease to accumulate as much crypto as possible at a cheap price. When I potentially think that price may get a leg up again, I Dollar-Cost Average my buys so that it totally matches with my bullish long-term plan on crypto!

 

Thank you for having read my post, feel free to share your thoughts and any other feedbacks in the commentary section.

Disclaimer: The crypto outlook published in this post does not constitute financial advice, but my overall opinion on the current market and the strategies that I may use for long-term investment. Any action taken from upon information is at your own risk.

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ben06x
ben06x

French student interested in all cryptocurrencies.

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