Where to invest? Optimal cryptocurrency portfolios

2020 is shaping up very well for the cryptocurrency market. Since January, Bitcoin has risen in price by more than 50%, and Ethereumalmost tripled.Coins belonging to the decentralized finance (DeFi) sector gained even more. The price of the Chainlink (Link) token increased almost seven times to $11.4, now approaching $20, writes RBC Crypto.

The digital money market has a good chance ofcontinued growth. And the current crisis is only good for them: in order to fight it, the governments of many countries print currency, which leads to its depreciation. For example, the DXY dollar index has dropped 8% since May to 93.5 points. By contrast, digital coins such as bitcoin are limited in emission, allowing them to act as a defensive asset.

Altcoins also have growth prospects. For Ethereum, the driver may be an update to the second version of the network, for the Binance exchange token (BNB token) - the launch of new products.

The choice of possible investments for the next year is huge. Industry experts shared how to assemble the most promising crypto investment portfolio for 2021.

"It's interesting to buy now"

United Traders analyst Fyodor Anashenkov

• 30% in Bitcoin.Bitcoin is now interesting to buy becausemarkets were gripped by uncertainty due to the US elections and the future policies of the new president. There is consensus that the quantitative easing program leading to the depreciation of the dollar will continue, which will have a positive effect on BTC. Additionally, the first cryptocurrency is a market benchmark. I would allocate 30% of the portfolio to it.
• 20% in Ethereum.Ether is also worth buying.Firstly, the project team is actively working to update Ethereum 2.0 and within a year, at least the first stage will be implemented. Secondly, the coin and its network are used in the field of decentralized finance (DeFi). If you believe in its prospects, then this is an argument. For ETH, I would allocate 20%.
• 15% in DeFi. Currently, DeFi tokens are among the most risky andpromising in terms of coin growth. Some of the strongest assets in this area include Maker (MKR), Compound (COMP), Uniswap (UNI), Aave (AAVE) and add Chainlink (Link) to this list, since it has a direct correlation with DeFi. Another 15% can be allocated for all of them.
• 20% in altcoins from TOP-50.20% can be placed in a kind of “index”altcoins". We are talking about coins from the TOP-50 ranking of cryptocurrencies by capitalization, which have a history of growth this year: Tezos (XTZ), NEO (NEO), Tron (TRX), (DOT), Cosmos (ATOM), Stellar (XLM) , Basic Attention Token (BAT) and others.
• 15% in stablecoins.The remaining 15% should be reserved for stablecoins. This amount will be used to reduce volatility risks and quickly rebalance in case of a sharp change in the market situation.

"Bitcoin Could Reach $ 17,000"

Victor Pershikov, Lead Analyst at 8848 Invest

I remain bullish on BTC and altcoins in 2021 and recommend investing in a digital asset portfolio in the following proportions:

• 15% in Bitcoin, 15% in Binance Coin.15% can be allocated for Bitcoin and exchange tokenBinance (BNB). The first is a market benchmark, the second is a driver of the token sector of crypto exchanges. Both are in high demand right now and could rise to $17,000 and $50 as early as next year.
• 15% in Ethereum and 10% in EOS.Maintain Ethereum price growth next yearthere will be a transition to the second version of the ETH 2.0 network and the Proof-of-Stake protocol, which will introduce the staking function. EOS is an undervalued ETH competitor from China that is affected by the low base effect.
• 10% in Litecoin.This coin remains undervalued and is capable ofshow multiple growth in the next few quarters. Network activity, hashrate continues to grow, LTC remains profitable for mining farms around the world, and against the backdrop of growth to $100, it may receive a new impetus for mining.
• 10% at Crypto.com Coin. Taking into account the fact that the Central Banks of different countries selectively ban competitors’ crypto cards, this project has good prospects to manage to occupy a niche in this sector.
• 10% at VeChain.Reliable project partnerships with the sectoroffline economies make the token fundamentally strong, and the stable price and growth prospects are a good reason to buy against the background of the increasing capitalization of the entire market.
• 10% at Aave and 5% at UNI.In my opinion, DeFi and “yield farming” are stilldid not play a role and may receive a new wave of support next year. This will be helped by the technological development of projects, and not just by the growing popularity of the sector.

"There should be the most bitcoin in the portfolio"

Cryptorg.exchange CEO Andrey Podolyan

Investments in financial markets involvedifferent tactics. The crypto market is no different from others in this regard; there will always be interest here, including long-term investments. If I were putting together a portfolio now, I would do the following:

• 30% in Bitcoin.Leading investment funds are increasing the share of BTC in theirportfolios. This cannot be ignored so as not to miss a possible strong wave of growth. Bitcoin is the main coin of the crypto market, everything is built around it, and you should have the most of it in your portfolio.
• 25% in Binance coin.Binance continues to grow and its tokenis strongly woven into the ecosystem, and new opportunities for its use are constantly emerging. In addition to earning money directly from the growth of the token, there are opportunities for staking, participation in Launchpools and various exchange programs that generate income.
• 10% in Ethereum.The second most popular coin. Many ecosystems have been built around it, including Defi projects that have gained popularity. Everyone is waiting for the release of Ethereum 2.0, after which strong growth may follow.
• 30% in stablecoins and 5% in various altcoins.Since I actively trade intraday, includingusing automated trading systems, I need to have the USDT stablecoin. With their help, I trade crypto futures. Some stablecoins are worth keeping on hand for interesting opportunities that arise. Another part can be put at small fixed percentages in staking and other exchange offers, which will give a conservative profit.

All transactions should be divided into several parts and buy cryptoassets at equal intervals over several weeks / months. Thus, the entry point can be averaged.

</p>

Rate this publication