Your Bitcoins are sleeping. You are glad that Elon's apparent craziness pumped the price higher and you are patiently waiting that BTC hits $50k without knowing if will happen next week or next month. You think it is just a question of time, but you would like to do something with your coins in the meantime. As you feel it is not the right time to buy a new car, you would like to swap some of your Bitcoins for a good pumping altcoin.
There are three options:
1) You look for a low cap token. They are so many that it is challenging to pick one. Furthermore, the risk is proportional to their volatility. However, there are a few good DeFi tokens, with great potential: Injective Protocol (INJ) is a good example. You may take a bit of it, it might be worthwhile.
3) You look at the top ones - ranked by market cap, let's be factual:
- Bitcoin BTC $890,382,095,233
- Ethereum ETH $204,257,897,524
- Tether USDT $31,184,553,869
- Cardano ADA $29,434,443,864
- Ripple XRP $26,775,683,594
- Polkadot DOT $25,357,892,888
- Binance BNB $20,059,803,003
- ETH will remain the #2 for a while... too far away from BTC to make the flippening, and 7 times bigger in market cap than the next one
- XRP is #5 now... due to their little problems with the SEC... Noboby knows how it is going to evolve. Personally, I would not bet on it
- ADA is #4... 5% below USDT in market cap... So they might be the #3 next week. Who could have predicted that three months ago?
- DOT is slightly out of the top 5, due to ADA bull run, but will come back in the top 5 if XRP drops again, which is likely to happen
- BNB surged so much this week that it is now pretty close to DOT. If BNB & DOT surge again, they will push XRP out of the top 7
Okay, that's cool, but which coin to buy now? Which one is going to surge again? I am not a financial advisor, but there are some facts:
- ETH is a good choice for the long term. Just imagine when ETH 2.0 is fully launched... It's going to be crazy. Let's target 2022 at least...
- ADA and DOT are competing to be the second smart contract blockchain after ETH. Both quite promising, especially for DeFi. On top of that, ADA is just below $1... If it goes above that psychological threshold, it will surge again... It could be close to ETH cap in a few months
- BNB is the winner of the week. The BTC bull run had an immediate impact on BNB, which is now above $130. Furthermore, the quaterly BNB burns constantly pump the price higher... as well as all the numerous DeFi projects on the Binance Smart Chain, with low transaction fees...
In summary, a good mix could be:
- A large portion of BTC: it may pump higher (Elon + Mastercard + Grayscale) - if it dumps, the altcoins will dump stronger
- A small portion of low caps: e.g. DeFi layer-2 DEX tokens like Injective Protocol (INJ) - due to Ethereum high transaction fees
- A good portion of ETH, ADA, DOT, BNB... With ETH for the long term, ADA + DOT for mid term, and BNB for the next BNB burn
I would recommend to keep some stable coins as well, at least 10% of your total value, just in case of crash... to buy more tokens at a low price.
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