Beyond Bitcoin and Ethereum: According to experts, 5 cryptocurrencies should be considered

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SÃO PAULO – Although there is still much debate, Bitcoin (and other cryptocurrencies) have become increasingly established as an alternative investment option that has nothing to do with the traditional market and the impact of economics and politics on its prices.

In recent years, the growth of Bitcoin, the world’s largest digital currency, has been highlighted. Although it is much more risky to stress than any other investment required, it has become commonplace for investors with bolder profiles to have a maximum of 5% of cryptocurrencies in their portfolios.

Although Bitcoin is the largest, it is not the only digital asset available, and in this more than 10-year journey, other currencies have emerged with different proposals that may be good opportunities because they are still in their infancy – and may offer more returns, but also more risk .

Experts recommend that Bitcoin should be anyone’s first crypto investment, as a good gateway to understanding and understanding how this market works. But for those who already know, it may be time to expand your portfolio and start diversifying in this world.

Therefore InfoMoney He spoke to four cryptocurrency experts who pointed out some coins that could be a good investment opportunity. Bitcoin and Ethereum were left out of the list because they are already more established and are known to the public who are not in the early stages of investing in cryptography.

Rodrigo Miranda, head of Bitcoin University, explained that even in the diversification of this market, between 60% and 70% of the cryptocurrency portfolio should be exposed to Bitcoin. He recommends another 20% on Ethereum and the rest alone, about 10%, distributed in other digital currencies, known as altcoins.

Samir Kerbage, CTO of Hashdex, points out that in addition to payment currencies such as Bitcoin, the cryptocurrency market can be divided into four “sectors”: smart contracts; decentralized finance (DeFi); tokens non-fungible (NFT); and so-called Web 3.0 applications.

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Among the experts consulted, 14 cryptocurrencies were mentioned, but five of them were more prominent and were voted on more than once. Check the list, remembering that there is no order of recommended or best screenings:

1) Polkadot (DOT)

Cryptography is one of the most popular concepts in the world smart contracts (smart contracts, in Portuguese) are digital contracts that specify the rules to be implemented using programming rules. The most popular protocol of this type is Ethereum.

But it is not the only one, and for Safiri Félix, the product and partnership manager at Transfero Swiss, the platforms that compete with Ethereum and learn from the scalability issue it faces have great potential.

In this sense, Polkadot was one of the most cited tokens by the experts consulted. It is a “multi-chain network” that aims to create a system of blockchains that can connect and operate in parallel with Polkadot, called “parachains”.

According to Safiri, it is this concept of “parachutes” and the integration of multiple blocks that make Polkadot more attractive. “They are [desenvolvedores] they have an interesting use case, the project focuses on interoperability, because it has an interesting potential, ”he says.

Rodrigo Miranda of Bitcoin University has the same vision, which sees the integration that this network allows as attractive for the future.

Polkadot’s interoperability aims to establish a fully decentralized and private Internet, controlled by its users, facilitating the creation of new applications, organizations and services.

Its protocol connects public and private channels, unauthorized networks, oracles, and other technologies of the future, and allows these independent lock chains to reliably share information and transactions through the Polkadot relay chain.

Polkadot’s original DOT token seeks to provide network governance and operations in addition to creating parachutes.

2) Solana (SOL)

Another sign that many experts have commented on was Solana, which was created to oppose Ethereum, a blockchain platform aimed at presenting fast, cheap and scalable solutions for standalone contracts.

Solana’s goal is to improve the scalability of the network by introducing proof-of-history (PoH) consensus combined with proof-of-stake (PoS) consensus. This combination has attracted the attention of both individual and institutional investors.

For Kerbage, Solana, as well as Polkadot, are interesting projects in terms of infrastructure, the so-called “two layers”, focused on the application of decentralized assets.

Read also: BRZ and Solana launch 100 million BRL fund to fund Brazilian cryptography projects

Solana says that Solana is “one of the projects with the most potential”. “They have a very competent technical team, they have good funding to develop and they are building an ecosystem very quickly,” he says.

Miranda, on the other hand, says that the Solana group is “giving a lot”, that it has a fast network, with low fees, as well as its own blockchain.

“Its big difference is that there is a big team behind it, Alameda Research, which also has a percentage in the FTX project and is growing,” he said, reinforcing the investments being made in the network. “It doesn’t get much publicity, but it does get a lot.”

3) Aave (AAVE)

Aave is another cryptocurrency that has attracted the attention of the market and is well received by experts, especially because of its different design, focused on lending through tokens via blockchain, which is decentralized without the intermediation of financial institutions.

Miranda points out that it is the largest volume cryptocurrency in the market today in terms of lending, which was the one that innovated in this scenario, being a good asset for diversification.

Aave works using smart contract technology on the Ethereum network, ensuring security and agility in the operations between the lender and the borrower.

On the one hand, investors with cryptocurrencies in the repository can lend to other people who use Aave, earning interest on the transaction. More than 20 tokens are currently accepted online.

At the other end of the spectrum, anyone with an accepted cryptocurrency can borrow using this network, quickly, with the security guaranteed by the blockchain, without any bureaucracy and without the need for other assets as collateral.

4) Cardano (ADA)

According to the fifth cryptocurrency market capital, Cardano is already known to many people, but its potential has been more dangerous in the face of many promises made by as yet unfulfilled developers.

“If you keep your word, you have great potential,” said Miranda. “It simply came to our notice then. While Solana, for example, is giving a lot and promising little, Cardano has already promised a lot, but has not yet fulfilled it. If he starts giving, he has a lot to be thankful for. ”

Cardano is a network of well-known cryptocurrency projects. On the one hand, it aims to operate in smart contract operations, such as Ethereum, and on the other hand, it also wants to act as a common cryptocurrency, more or less like Bitcoin.

It is a platform that intends to work with all other cryptocurrencies, believing that in the future they will all work together. In short, Cardano addresses a number of issues addressed by various tokens and seeks to address them.

Safiri stressed that there is great hope that Cardano will be released first smart contracts in your network, which should have a very positive effect on the price of the asset.

Last week, Charles Hoskinson, the founder of Cardano, announced that an update to the network will be announced soon, according to which investors will “be able to implement smart contracts in Cardano.”

5) Axie Infinity (AXS)

In a very different area from previous assets, Axie Infinity has become one of the hottest tokens in recent months. Blending in the field of NFT and online gaming, AXS has been highly regarded in 2021 with an increase in players on its platform.

Created in the Ethereum blockchain, Axie Infinity is a Pokemon-faced game that also mixes the concepts of card and strategy games, in which the user can earn a token when he improves his characters and meets certain conditions, called Smooth. Love Potions (SLP), which is also a tradable cryptocurrency.

Read more: Axie Infinity: How it works and the risks of betting on cryptocurrencies and NFTs that have made big profits every month

Its popularity has raised the price of AXS tokens significantly this year, but one of the factors that has attracted attention is that its players earn thousands of reais a month on the platform.

Alex Buelau, a partner at Parfin, points out that this is the most popular game on the blockchain today, and it simply follows the pattern of the return of gambling tokens, which is called “winning to play”.

Kerbage says the gaming segment benefits greatly from this new model. “This new type of game that uses NFT has good potential for growth,” he says.

Other cryptocurrencies

With more than 11,000 cryptocurrencies currently in place, other assets could also be good opportunities, and experts recommend that every investor look for data on the cryptocurrencies they want to research, analyze, and invest in.

Among the tokens indicated by the experts heard InfoMoneystill appeared Polygon (MATIC), Chain (LINK), Exchange (UNI), Compound (COMP) and Filecoin (FIL)even with less potential than the aforementioned crypts.

Miranda also commented PancakeSwap (CAKE), a sign of one of the largest decentralized exchanges in existence (DEX) and estimated at more than 2,500% this year. However, he noted that it is a more risky asset than most and that you need to be careful when investing.

According to him, this increased risk is still associated with being a crypto that still needs a lot of development and improvement, as the platform currently operates in the Binance Smart Chain blockchain. “We don’t have that much information yet. [sobre PancakeSwap]hence the greater risk, ”he says.

Parfin’s Buelau also highlights three other cryptocurrencies that are farther from the radar of the market. is the first FlowA blockchain focused on the gaming and entertainment market with NFT, already in partnership with the NBA and other big companies.

It is another good Hathor (HTR), created by Brazilians with the goal of facilitating the launch of new tokens, and still has advanced technology that allows it to process millions of transactions per second. With zero cost and tokenization, Buelau sees a good opportunity under the radar.

Finally, he mentions Helium (HNT)It aims to create a blockchain in the Web 3.0-oriented segment and a wireless data network where consumers and small businesses use the network to promote and validate this coverage, serving as a form of wi-fi mining.

Experts emphasize that it is always necessary to study each cryptocurrency well before investing in order to understand its operation and potential, avoiding buying it, because it is growing strongly or is well heard. Also, remember that Bitcoin and Ethereum should still be the largest exposures in a cryptocurrency portfolio.

For starters, or those who don’t want to invest in assets, there are other options on the market instead of direct investment in digital currencies, such as funds, and many new ETFs are being launched in return. which can help in portfolio diversification.

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