2020 is shaping up very well for the cryptocurrency market. Since January, Bitcoin has risen in price by more than 50%, while Ethereum has almost tripled. Coins related to the decentralized finance (DeFi) sector added even more. The price of the Chainlink (Link) token has increased almost sevenfold to $ 11.4, at the moment approaching $ 20, writes RBC Crypto. The digital money market has a good chance of continued 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 upgrade 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. It is interesting to buy bitcoin now, as the markets are gripped by uncertainty due to the US elections and the further policy of the new president. There is a consensus that the quantitative easing program, leading to the depreciation of the dollar, will continue, which will have a positive impact on BTC. In addition, the first cryptocurrency is a market benchmark. I would allocate 30% of the portfolio for it.
20% in Ethereum. Ether is also worth buying. First, 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 promise, then this is an argument. For ETH, I would allocate 20%.
15% in DeFi . Now DeFi tokens are one of the most risky and promising in terms of coin growth. The strongest assets in this area are Maker (MKR), Compound (COMP), Uniswap (UNI), Aave (AAVE) and add Chainlink (Link) to this list, as it has a direct correlation with DeFi. All of them can be allocated another 15%.
20% in altcoins from TOP-50. 20% can be placed in a kind of "altcoin index". We are talking about coins from the TOP-50 rating of cryptocurrencies by capitalization, which have a growth history 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 the risks of volatility and to quickly rebalance in the event 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% each can be allocated for bitcoin and the token of the Binance exchange (BNB). The first is the market benchmark, the second is the driver of the cryptoexchange token sector. Both are now in high demand and may rise to $ 17,000 and $ 50 next year.
15% in Ethereum and 10% in EOS. Support for the growth in the price of Ether next year will be the 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 competitor to ETH from China and is affected by the low base effect.
10% in Litecoin. This coin remains undervalued and is able to show multiple growth in the next few quarters. The activity of the network, the hash rate continues to grow, LTC remains profitable for mining farms around the world, and against the background of growth to $ 100, it can receive a new impetus for mining.
10% at Crypto.com Coin . Taking into account the fact that the Central Banks of different countries selectively prohibit competitors' crypto cards, this project has good prospects in order to have time to occupy a niche in this sector.
10% at VeChain. Reliable partnerships of the project with the offline economy sector 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 “profitable farming” have not played their role yet 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"
CEO Cryptorg.exchange Andrey Podolyan
Investing in the financial markets involves a variety of tactics. The crypto market is no different from others in this, it will always be interesting, including long-term investments. If I were compiling a portfolio now, I would do the following:
30% in Bitcoin. Leading investment funds are increasing the share of BTC in their portfolios. This cannot be ignored in order not to miss a possible strong growth wave. Bitcoin is the main coin of the crypto market, everything is built around it, it should be the most in the portfolio.
25% in Binance coin. The Binance exchange continues to grow, and its token is strongly woven into the ecosystem, and new opportunities for its use are constantly emerging. In addition to making money directly on 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 are 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 am actively trading within the day, including with the help of automated trading systems, I need a stablecoin USDT. I trade crypto futures with their help. Some stablecoins should be kept close at hand for interesting opportunities that arise. Another part can be put at small fixed interest rates 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.