The digital money market was a stormy one recently – in a couple of days some coins increased by tens of percent, but instantly lost as much. Volatility has returned, which means that you can get rich quickly on a new type of assets … or go broke.
On June 26, the Bitcoin rate rose by 25% and set a new annual maximum above $ 13,760. However, in less than two hours the first cryptocurrency was trading at $ 12,370, and by the evening of June 28 it was $ 10,576. At this point, it is not clear whether this is a starting point for a new coin growth, or the price will go even lower. One thing is clear – cryptocurrencies have already begun to attract the attention of people who are usually not connected with the financial sphere.
We talked to experts to answer the main questions – does it make sense now to enter the market, is it worth buying altcoins for quick money, which coins can become more expensive and what about Bitcoin. We do not make recommendations for the purchase of certain assets, all information is published solely for informational purposes.
Cryptocurrency market has changed
Vladimir Annikov, Advisor to the President of the European Legal Service for digital markets, believes that the cryptocurrency market has changed – the composition of participants has changed, a certain approach to regulation has emerged, as far as possible, dubious and frankly fraudulent projects have failed, and the blockchain industry has become more understandable. The specialist proposed to distinguish between changes in the market and the cryptomere in general, despite the close relationship between them:
This week, probably for the first time, we observed a reflection of the role of cryptocurrencies as a protective asset, that is, high volatility, significant risks of investing in altcoins were perceived by investors not as a ‘childhood disease’ of cryptoactives, but as a given, with which you can work. Information on the planned lowering of the base rate led to an increase in the number of long positions on Bitcoin futures and a significant infusion on the real-time crypto accounts for the acquisition of cryptocurrency.
He believes that altcoins will grow in price; first of all, attention should be paid to infrastructure projects such as Ethereum, IOTA, XRP and BNB. The expert claims that these coins do not have the greatest volatility, but high liquidity.
What you should definitely do is not to go to the stock exchange without a plan, succumbing to HYIP. You have to decide for yourself exactly why this or that asset is acquired and what your strategy is, if the goal of investment is saving, you probably should not acquire anything other than the good old Nakamoto coin.
According to the head of the analytical department of Aurora Capital, Oleg Abeleva, now, as always, it makes sense to buy altcoins. The main thing to do is to focus on the long term and choose only coins with a good investment idea, the expert explained. He also suggested paying attention to stock tokens, such as, for example, Huobi Token.
If it is long-term, now, like last year, you can enter the cryptocurrency market. It is worth investing in Bitcoin, Ethereum, partly Monero, NEM and Stellar. Speculations are not exactly worth doing now. It is better to invest in the proportion of 40% (Bitcoin), 40% (Ethereum) and 20% – other cryptocurrencies, for example, exchange ones.
Advisor to the Chairman of the Board of the Financial Innovations Association Murad Salikhov warned that there is a high probability that the bullish growth that we are seeing now is only a rebound from a bearish fall and has not yet seen the real bottom of Bitcoin. The specialist explained this with the Elliott wave theory, according to which the situation on the Bitcoin market is very similar to the model of movement according to the three-wave model going against the trend. The fears of the expert are also supported by excessive optimism associated with cryptocurrencies.
Wherever you look, they are advised to buy Bitcoin, they predict growth to $ 20– $ 30,000 by the end of the summer, and in the world of finance there’s nothing worse than succumbing to the mood of the ‘crowd’. If this asset shows a false increase, then after the start of the correction, the altcoins can increase greatly, Ethereum can rise in price to $ 2,000 ( now its price is $ 305, – ed. ). If you choose altcoin to diversify your portfolio, then you should pay attention to ETH.
Worth buying altcoins
Founder of LetsTrip Ecosystem Mikhail Khudokormov also believes that it is worth buying altcoins, but care must be taken. The expert predicts a Bitcoin drawdown to $ 9,500, since consolidation will continue until approximately the end of August of this year.
This time point is a start to the conquest of new peaks. As for me, it’s worth a closer look at buying Litecoin, Stellar and Neo.
Trader Dmitry Lavrov explained that after Bitcoin reached a level of $ 13,900, its price rolled back under the important mark of $ 12,000. Now it’s a resistance level, and it will determine further market movement: if the rate fails to consolidate higher, it will be a signal confirming decrease to $ 10,000. According to the analyst, the market can go down to $ 7,000.
Now you can buy on pullbacks, starting from current levels and below, or wait for a move above $ 12,000 and buy on breakdown of resistance. All actions should be thought out in advance and take into account all possible market movement scenarios. As for the Altcoins – I continue to insist that the most interesting market for trade and investment is Bitcoin. Altcoins can give a good profit, but at the same time, the risk is higher and altcoins are not as stable as the main coin.
He added that the main money will be invested in Bitcoin, and now there is a clear interest from large market participants in this cryptocurrency.
Bitcoin profitable in the long run
Director of Development for CryptoUniverse.io Roman Alterman suggested that in the near future the growth of altcoins cannot be as rapid as the growth of Bitcoin. However, it may be more stable in the long run.
The specialist explained that altcoins are often provided with business and functional value, which can lead to their organic growth. As a result, the dynamics of quotes of altcoin is directly related to the development of the business behind it. This process is more lengthy, requiring wide distribution and legalization, but at the same time, it may be more reasonable from an economic point of view.
The specialist stressed to keep the cryptocurrency and not to sell it despite the fluctuations. According to the expert, any long-term investment in Bitcoin was profitable and there is no reason for this to change in the future.
On the other hand, if an investor is willing to take greater risks and is ready to follow the main market trends, then it makes sense for him to make an investment portfolio with subsequent unbalancing depending on the changing market conditions, noted in CryptoUniverse.io. In this portfolio, the investor can add altcoins, which, in his opinion, are the most promising and secured by business from the area that is most attractive to him.
Analysts identified several altcoins that are worth paying attention to:
- Binance Coin – Altcoin, showing stable growth throughout its existence. The main driver of this growth is the correctly calculated tokenomics of the Binance platform. With this coin, users can pay trade commissions on the Binance exchange and receive discounts. As a result, the demand for cryptocurrency grows with the growing number of users of the most popular stock exchange today.
- EOS is Ethereum’s main competitor, which offers a more efficient smart contract development environment, cheaper and faster transactions.
- IOTA – Altcoin, designed to efficiently transfer data and payments without fees between devices on the Internet of things. Recently, the IOTA development team announced a partnership with Jaguar Land Rover with the subsequent integration of the functionality into the vehicles of the holding, which caused a sharp rise in the coin rate.
- BAT (Basic Attention Token) is altcoin integrated into the Brave browser and paid to users as a reward for certain actions on the network.
- Cardano and Tezos are general-purpose platforms based on advanced scientific research in the field of mathematics and cryptography. These altcoins can attract the attention of investors interested in complex R & D projects.
Experts have called different tokens and see different perspectives from altcoins, but they all agree on one thing. Making purchases in the cryptocurrency market can only be beneficial in the long term. Due to the high volatility, no one can guarantee profitability in a short period of time.