Which crypto is best to buy this cycle besides Bitcoin?
It’s a question I get asked a lot.
If we’re talking about large amounts, we have to look at the large mcap coins with high liquidity and volume.
First, we can look at the weekly ROI (first column). This week saw the first signs of a recovery in the market, after a long (six-month) correction, so it makes sense to look at which are the tokens with best performance in this recovery.
From this screenshot it is obvious that the best performers right now are AVAX, SOL, BNB and ETH.
However, this is not enough, so we should take into account the larger timeframes too. This is why I would suggest we look at the YTD ROI to get a better picture in the long run.
While AVAX has great weekly ROI right now, it is on negative from the start of this year. Thus, it is less appealing, while BNB, SOL and even TRX and TON are leading.
However, both TRX and TON are at higher risk of regulation and uncertainty.
TON suffers from the controversy of the arrest of Telegram developer Pavel Durov. Even though the token is not directly tied to Telegram anymore, it still holds a strong connection, which is problematic.
TON was originally intended as a native token for the Telegram platform. After numerous strikes and warnings from governments and central banks around the world, the Telegram team gave up on the development of the token and abandoned the project, but it had already gained a dedicated community that took the initiative and further developed and launched it. In effect, the token is decentralized and no longer tied to Telegram but there’s still a connection to Telegram, even if just by association at this point, so it is indirect.
This became apparent from the recent news of the arrest of Pavel Durov, which was met with panic selling, leading to a sharp decline in TON’s price.
TON ’s market cap plummeted, falling from $17.1 billion to around $14 billion within hours of the news. This is still quite a risk imo.
Then there’s TRX, the token of TRON.
This token is directly linked to Justin Sun’s various crypto ventures, such as Huobi, Poloniex and the crypto-pegged stablecoin USDD, which is a concern.
Should anything go wrong with either of these in the future, TRX will be greatly affected. Hence why, I wouldn’t choose it for any substantial amount in the long run.
So we’re left with SOL and BNB, and both are outperforming BTC and ETH. This means, my money would be growing better with either of these alts than with ETH, if this trend continues.
BNB is tied to Binance exchange, so again, there’s a risk of future regulations that could impact its performance, while Solana is prone to outages and centralisation, which is a concern too.
If you’re wondering why I’m not advocating for Ethereum, the second biggest crypto of all, just look at its performance since the start of this cycle.
Ether has been underperforming for a whole year now and it’s lost half of its value against Bitcoin (especially in the last 6 months), which makes it a poor choice for large investments. It is a gamble at this point since it has shown no signs of strength and it lost a big chunk of its appeal among new investors.
This cycle seems to be more about the Ethereum competitors and namely, Solana and BNB Smart Chain, and to some extend Avalanche, but that was kinda brief. Hence why, if I want to diversify some of my ETH stash, or I have spare capital to invest in anything other than Bitcoin, I would allocate it to Solana and BNB.
Disclaimer: I do hold TON and a bunch of other alts, but I have smaller size positions in those, due to higher risk of uncertainty, or lower liquidity, lower trading volumes, and other factors that make them higher risk.
One of my largest positions in alts is Kaspa and I also hold large positions in FET and Chainlink (which is also having a poor performance in this cycle compared to Bitcoin).
The bigger amounts I invest require lesser risk, which is why I am talking about large mcap tokens here. Of course I diversify into small-cap tokens for bigger gains, but these are low liquidity, meaning I can’t easily sell $40,000–50,000 (US) positions in a hurry, should I need to catch a pump. This means I hold smaller positions in such tokens. The smaller the mcap, the less liquidity/volume these tokens have, so it becomes difficult to offload your bags, so keep this in mind. If you’re only working with small amounts (under 5000 usd), then this doesn’t create a huge problem, but I’m talking about big size positions here.
Hope that helps.
NB: I originally posted this as a long thread on X (twitter). You can find it here: https://threadreaderapp.com/thread/1837445980230201428.html
and follow me: https://x.com/busyjordy
☝These are my opinions, not financial advice, always DYOR.
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The information contained in this article is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. This content reflects solely my own opinion and analysis.
Purchasing cryptocurrencies poses considerable risk of losses. All information is meant for public awareness and contains what is already in the public domain. Always do your own research!
