Cryptoinvestments-2024. Assembling a portfolio.

The past year was a good one for the cryptoeconomy. Large corporate investments in bitcoin, strengthening of decentralized finance(DeFi) and positive statements of politicians supported the industry. Cryptocurrency assets have good potential to continue growing in 2021. Let’s talk about what to prepare for and what to invest in.

Bitcoin

In the fall, there was a boom of institutional investors in BTC. Private companies Square and MicroStrategy invested more than $470 million in the coin. The head of MicroStrategy spoke about bitcoin as a strategic tool for the company’s capital allocation. This is the first time a public company listed on the NASDAQ exchange has invested in bitcoin. Part of the fiat money of the shareholders was invested in the cryptocurrency. This is an interesting precedent that will gain traction in 2021. Any large purchases of BTC will support the growth of its market value.Against the background of growing uncertainty before the elections in the United States, confidence in the U.S. currency is also falling. Dollar futures (DXY) have lost more than 9% since March this year. At the same time, the US Federal Reserve continues to print new money. The dollar index could fall deeper, and investors will flee into new assets. Bitcoin issuance, unlike the dollar, is limited by the system itself – not bad for capital storage. Bitcoin capitalization of more than $ 195 billion will provide the necessary margin of safety for long-term investments. In addition, during the pandemic, BTC proved to be more stable than other cryptocurrencies.

Ethereum

The transition to a new version of the network, ETH 2.0, and the PoS protocol can ensure the growth of ether in 2021. Over the year, the cryptocurrency grew almost 3 times, which happened rather due to the growing popularity of DeFi projects – many of them are created on the Ethereum platform.However, in any financial market, the trend does not move in one direction all the time. After a big growth there should be a deep correction, and Vitalik Buterin earlier asked not to create too much fuss around decentralized finance. The industry is growing, but such growth so far resembles the excitement around the first ICOs, many of which turned out to be a mere hype.

LiteCoin

Halving bitcoin and the active use of the PoS algorithm in mining new coins is an opportunity for one of the first altcoins. Part of the capacity can be transferred to its mining, which remains profitable for mining farms. Network activity is increasing, and the coin is considered the silver of the crypto economy. In 2017, LTC creator Charlie Lee sold all his Lightcoins to focus on developing the platform. The coin’s price later rose to $202. Lightcoin is considered one of the most undervalued assets today with a market rate of 1 LTC/ 47 USD. Breaking through a strong resistance zone in the range of 100-120 dollars will lead to further growth of the cryptocurrency and increase demand.

Stablecoins

The Tether coin has rapidly increased its market capitalization over the past two years. USDT is backed by dollars, making its volatility low. Instant and inexpensive exchange for cryptocurrencies increases the speed of trading, which is convenient for traders, whose number on crypto exchanges is growing. The share of transactions on cryptocurrency/USDT pairs on the largest exchanges already accounts for more than 70% today. Part of the steiblecoins can be put under interest and receive income. Among similar coins, Tether is distinguished by a long history and stability in the fulfillment of obligations. There is more trust in this particular coin.

1

ByBit

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Binance

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Il più grande exchange di criptovalute dove è possibile iniziare in modo rapido e sicuro il proprio viaggio nel mondo delle criptovalute. La piattaforma offre centinaia di asset popolari, commissioni basse e strumenti avanzati per il trading e l'investimento. La facilità di registrazione, l'alta velocità delle transazioni e l'affidabile protezione dei fondi fanno di Binance un'ottima scelta per i trader di qualsiasi livello!

BinanceCoin (BNB)

Token of the largest crypto exchange in the world by capitalization and trading volume. The platform is actively listing DeFi coins and plans to become a decentralized universal asset exchange. The destruction of a certain number of BNB every quarter stimulates demand for the coin and the growth of its rate. Another withdrawal of more than $68 million worth of coins from circulation led to BinanceCoin’s 17% growth. The token allows for lower trading commissions and withdrawal fees, which can be used by investors on par with investing in the coin itself.

Altcoins again

A certain share in the portfolio should be given to the top altcoins, which are still undervalued by the market:

• Ripple (XRP) lacks transparency, and many blockchain enthusiasts accuse the project of increasing centralization. However, the real development of corporate payments and cooperation with dozens of banks in the US, EU, Japan and Singapore, make an investment in XRP interesting. In addition, the company is planning an IPO. The exact date is still unknown, but the listing of shares on US exchanges will lead to the growth of the coin itself;
• NEO more than tripled in 2020, and the equity of $1.24 billion is a good foundation for future price increases. The platform allows private users to set up trading and tokenize their assets. Some experts estimate that the industry’s capitalization could reach more than $3 trillion by the 2025s.
• Tezos is one of the most successful ICOs in the year 2017. The coin is being actively added by new exchanges. XTZ has been growing since December 2018 and is now in correction – a profitable purchase amid a long upward trend;
• Stellar provides real-time currency transactions. The company may soon provide XLM tokens to users of the SatoshiPay platform. The project was created to pay for authored content with cryptocurrency. If the cooperation works out, Stellar will be able to attract additional investments. The growth of the value of the coin in this case is predetermined.

Portfolio investing reduces financial risks when possible losses of some assets compensate for the growth of others. In the table our editorial team has presented its vision of investments-2021, which you can invest in today.