The most promising assets for investment on the crypto market

In 2020, the cryptocurrency market showed significant growth. Since January, Bitcoin (BTC) has risen in price by 160%, to the current level of$ 12,300. Ethereum has added 220% to the price over the same period and now costs $ 430. Many altcoins with smaller capitalization brought investors even greater profits, writes RBC Crypto.

For example, the Cardano token (ADA) rate since the beginning of the yearrose more than 350% to $ 0.14. The Chainlink (Link) coin distinguished itself the most, over the past 9 incomplete months its value has increased by 950% and is now at the level of $ 19.

Bitcoin or Ethereum?

Investor interest returned tothe cryptocurrency market, according to the head of the data analysis department of CEX.IO Broker Yuri Mazur. He said that there is an accumulation of long positions in the main digital assets: Bitcoin, Ethereum and Ripple. This is due to the gradual change in the focus of investors from the stock market to alternative platforms, and digital assets are one of the most potentially profitable instruments.

A promising asset to buy isEthereum, Mazur specified. According to his forecasts, the rate of the coin may soon rise to $ 500. The growth driver will be the expectations of the release of the second version of the altcoin network, which will allow passively increasing the number of coins for storing them in the wallet.

“We believe that the most promisingEthereum is the cryptocurrency for the coming weeks or even months, as players are more aggressively gaining long positions on it in anticipation of ETH's transition to the new Proof of Stake algorithm. Most likely, it is this news, or rather the expectations of growth before this news, will force the quotes of digital assets to grow after ETH ... We believe that the goal of the ETH / USD pair may well be the psychological mark of $ 500 "- said Mazur.

He clarified that one should not deny the possibilitycorrection of the Ethereum rate. The same situation may occur that happened to BTC in May of this year, when, after unfulfilled hopes for a sharp rise in prices against the background of halving, it significantly corrected. Nevertheless, in the coming days, the main focus of investors will be converging on ETH.

Founder of the stable cryptocurrency platformSTASIS Grigory Klumov agreed that the digital asset market is now in a growth phase, but expressed the greatest preference for bitcoin. This is the "king of the crypto market", and investments in it will pay off within a few years.

“Cryptocurrencies are in a cyclical bull market, so investing in BTC can be done every day.

Bitcoin is the king of the market, the blue chip, and howI have said repeatedly, there is no bad time to buy it. You can buy bitcoins any day - within a few years it will become a successful investment ", - Klumov is sure.

DeFi Market Madness

In 2020 The Decentralized Finance (DeFi) sector has attracted significant investor attention. It features applications, exchanges and other services. Users of such platforms do not need to store their cryptocurrency on them; they can trade it directly from their cold wallet.

Most DeFi platforms have their own tokens. Over the past six months, they have shown explosive growth. The best example here is the yEarn Finance DeFi coin. It first appeared on the stock exchange on July 18, at that time its price was about $ 35. A week later, by July 25, the asset rose in price by 13,000%, to $ 4,800. The current cost is $ 7000.

One of the growth drivers for the DeFi token rateis a listing on major platforms. For example, on August 12, Coinbase announced that it would open trading with the Numeraire (NMR) coin. Within a few minutes after that, its rate rose by about 200%, from $ 20 to $ 55, after that it slightly adjusted. Today the cryptocurrency was added by the Binance platform. Against this background, the NMR rose from $ 50 to $ 71.

What is happening now in the DeFi market canto call it real madness, says private trader Alexander Boyarintsev. Tokens of decentralized projects can rise in price by thousands of percent per day. This is starting to resemble a bubble and a correction is likely, but it is not known when it will come.

“Many DeFi tokens grow sometimes by 1000% inday, however, is not lagging behind in this regard and ETH, already overtaking the growth rate of the main cryptocurrency bitcoin. I believe that a bubble in the DeFi market is now inflating, and many investors rushed there for X's, a clouding of mind occurs in my head. It's hard to say when this crazy race will end, but the faster the growth, the more likely a correction is. "- Boyarintsev warned.

He noted that you can try to participate inthe DeFi token race, but investing in them is extremely risky. Therefore, you should not allocate more than 25% of the investment portfolio for this venture. It is also important to be ready to dump new assets as soon as the first signs of correction appear.

Boyarintsev named a number of DeFi tokens that he is interested in. These included:

• ChainLink - a platform for managing smart contracts with external oracles;
• Lend is a lending platform, cryptocurrency is used for collateral;
• MITH is a social network with its own internal cryptocurrency and the possibility of withdrawing to fiat money;
• Ren is a decentralized exchange;
• Kava is a decentralized lending platform using cryptocurrency.

Klumov added that the growth of interest in the DeFi sectorcontinues for two quarters. In view of this, the most famous coins from the field of decentralized finance are "overheated". Buying them is risky as a correction is likely. Instead, you can look at DeFi tokens, which have not yet shown strong growth like their competitors.

“Buy blue chips from this sector alreadyscary, because they can break into correction at any moment. However, when the trend is strong and the main blue chips of the sector have risen, then you can use the same strategy that works in the stock market - buy DeFi sector tokens that have not yet grown. ", - recommended Klumov.

One example of a lagging token wherea strong asymmetry remains and the potential profitability is many times greater than the potential risks, Klumov called the coin Amoveo (VEO). This platform allows users to create derivatives on the blockchain without a central counterparty in a so-called "trustless" environment. The asset in 2020 has not yet shown explosive growth, risk-ready investors can take a closer look at it and the like.

Regarding the Decentralized Finance Sectorit is imperative that the investor understands what DeFi is, warned Mazur. Statistics show that a third of the crypto market participants do not understand this area. In terms of risk assessment, this is a bad situation, since traders cannot fully assess their capabilities.

On August 12, a new project Yam appeared in the DeFi space. During the day, users blocked more than $ 500 million in it, against the background of this, the price of the coin reached $ 167. On the second day of the platform's operation, its developer reported the discovery of a critical vulnerability. Within half an hour after that, the Yam rate fell below $ 1, the current value is $ 0.4.

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