Choosing a promising cryptocurrency for investment purposes can bring enormous profits in the future. INIn 2020, the decentralized finance (DeFi) sector proved this. Projects related to it showed a multiple increase in value in a short period of time, writes RBC Crypto.
This is especially true for start-upsdeveloping oracles - special mechanisms that allow the blockchain to read data from the outside world. For example, the price of the ChainLink (LINK) token has increased by 540% since the beginning of the year, to $11.6, immediately rising above $19. The competitor project Band showed an even greater increase. The token rate over the same period rose by 2600%, to $6, having exceeded $15 in early September.
To catch such growth, it is important to determine the future cryptocurrency in advance.Representatives of the industry told how to identify successful projects and how much to invest in it.
Function
Currency.com financial analyst Mikhail Karkhalev believes that to determine a promising cryptocurrency you need to pay attention to its purpose.The function of the project should be clear and clear, even if it is a complex technology or a complex system in development.The expert said that the technology or system should have a real application and solve real problems both in the crypto market and in other areas.
“Personally, I look at function.If this is something from the field of artificial intelligence on the blockchain, powered by the energy released by the rings of Saturn, then this is a clear scam of incompetent people for money... another exchange, Internet 2.0 or 10.0 or the hundredth killer of Ethereum - all this already smacks of bad manners », Karkhalev warned.
Development team
Karkhalev named the team as another important feature,behind the project. Sometimes among the representatives you can see former employees of companies such as Microsoft, Google, Goldman Sachs or JPMorgan Chase. But work experience can be different - you can work as a senior assistant to a junior janitor or develop complex products, the expert explained. Therefore, he recommended checking exactly what positions the project members held and what products they had previously developed.
Head of the Six Nines data center Sergey Troshinalso called the development team an important sign of the project's success. There are not so many well-known and proven specialists, as in any other field. Therefore, in projects with big plans, they usually try to attract well-known developers, because they know that this will draw the attention of the crypto community, the expert shared.
As an example, he cited the recently launchedEfforce project. The token he issued was introduced on December 3 and since then has risen in price by almost 2500%. A possible reason for this growth is the co-owner of the startup - Steve Wozniak, co-founder of Apple.
Code
Grigory Klumov, co-founder of the digital currency platformSTASIS, added that it is desirable to understand programming in order to determine a successful cryptocurrency.However, it is important to ensure that the project team publisheson GitHub.It's a kind of social network for developers, where they publishsolutions created and share the results of the project development.
Many projects are open source. By studying it, as well as the activity of the developers, you can understand whether there is dynamics in the development of the project and how positive it is, Klumov explained.
"An interesting feature of the crypto market is that the analyst should be more than just a financial expert.It is not enough to be able to understand the financial market, valuation methodologies, possible value and liquidity of the asset.Cryptocurrencies often include different components written in different languages.must be immersed in both areas to properly evaluate new projects", Klumov is sure.
How much to invest
Any project can seem extremely promising.But this does not guarantee success in the future.be poorly implemented, do not find an application, fade away against competitors or even turn out to be a product of scammers.Therefore, such investments are high-profile.
According to Troshin, a 10-20% stake in the investment portfolio can be allocated for venture capital investments.At the same time, you can invest a few percent in each interesting project, thus collecting a portfolio of a dozen altcoins or other high-risk instruments.
Karkhalev continued that it is possible to allocate up to 25% of the investment portfolio for the purchase of tokens of projects that were launched during the ICO and continueThey have experienced all the ups and downs of the industry in recent years.Such projects are more reliable and have a potential for development and growth, believesExpert.
From his point of view, for projects that were created just yesterday, in particular, it concerns the sphere of DeFi, it is not necessaryThis amount is enough to "play roulette" and try to get super-revenue.
Examples of promising projects
One of the most anticipated projects in the second half of 2020 was the Uniswap DeFi token.It is a decentralized exchange, which is a leader in its segment within the decentralized finance sector, which has been in a boom since the beginning of the summer.
Uniswap introduced its token at the end of September.Within a few hours after the unplanned launch, the coin was added by many trading platforms, including Binance and Poloniex. Against this background, the price of the new cryptocurrency soared from $3 to $8. Now it costs $2.9.
Uniswap token, as well as the coin of another DeFi-platform Compound Karkhalev called the most promising projects segment of decentralized finance.The expert has brought a few more coins, which on his "subjective view" are promising.
- Chainlink - collection and provision of external data for smart contracts;
- Cosmos and Polkadot are a network for blockchains to interact with each other;
- VeChain and IOTA are solutions for the Internet of Things (IoT) sector;
- Filecoin is a decentralized data storage.
Where to buy a promising cryptocurrency?
The most popular cryptocurrency exchange in the territoryRussia and the CIS is https://www.binance.com, the site ranks first in the world in terms of trading volume and supports transfers in rubles from Visa / MasterCard bank cards and payment systems QIWI, Advcash, Payeer.
Cryptocurrency exchanges working with rubles:
| # | Cryptocurrency exchange | Official site | Site evaluation |
|---|---|---|---|
| 1 | Binance (Editor's Choice) | https://binance.com | 9.7 |
| 2 | Huobi | https://huobi.com | 7.5 |
| 3 | Exmo | https://exmo.me | 6.9 |
| 4 | Yobit | https://yobit.net | 6.3 |
| 5 | OKEx | https://okex.com | 6.1 |
The criteria by which the rating is set in our rating of crypto-exchanges:
- Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
- Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
- Feedback and support– we analyze user reviews and the quality of technical support.
- Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
- Platform Features– availability of additional features — futures, options, staking, etc.
- final grade– the average number of points for all indicators determines the place in the ranking.
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