Note: While I focus on alts in this piece, Bitcoin should already be part of your portfolio. You should have at least 50% of your portfolio in BTC. Don't underestimate it, Bitcoin is the safest and most secure investment in the crypto market. Ignoring that is shortsighted. Make sure you allocate a fair share of BTC in your portfolio. The promise of moon from alts is very tempting, but don't lose yourself to greed.
Top altcoin picks in 2021:
1. ETH (runner up: DOT). ETH remains one of the best picks in the altcoin market. This is because its market dominance and ecosystem is the envy of most other alts. While there are some scaling challenges for ETH (to be addressed in ETH 2.0), the momentum of its ecosystem - which is best reflected in the emerging Decentralized Finance/DEFI (now valued at $22 billion) - cannot be ignored. DOT is our runner up, which could be seen as a live and working ETH 2.5. DOT is the 5th largest coin by market cap at the time of this post after an exponential growth in early 2021. This testifies its strong fundamentals.
2. XLM (runner up: ADA). XLM is consistently the blockchain with the highest average number of transactions (via coinstats) at around 30 mil transactions / week. The news that USDC stable coin will be available on XLM network in early Jan 2021 and that central banks (e.g. Ukraine) piloted their central bank digital currencies using XLM indicates REAL adoption is taking place positioning XLM as one of the leading blockchains for the world’s financial system. XLM having near instant and free transactions makes it even better. ADA or Cardano boosts a very strong team and in its third phase will focus on smart contracts integration rivaling some of the activities on the ETH DEFI market. I purposely left XRP out because with the SEC lawsuit ongoing, it's best to stay away.
3. LINK (runner up: GRT). As a decentralized oracle network solution, LINK is the to-go solution for smart contracts. With DEFI and ETH ecosystems growing exponentially, LINK became a staple of such solutions and with it, its price and market cap made it a top 10 coin. GRT or the Graph is our runner up as one of the most popular indexing protocol on the ETH ecosystem. Some called it the google of blockchains, indexing blockchain data for real use cases. For this reason it is another go-to solution in the ever expanding ETH ecosystem.
4. USDC (runner up: DAI). What - a stablecoin? Yes, you need to know your crypto. USDC is positioned to rival USDT market cap in time, seeing a 4x increase in the past few months and being the second most used stablecoin. With Goldman Sachs backed company Circle as the creator of USDC, you can't go wrong here. USDC is your best bet for a centralized, safe, secure and reputable stable coin pegged to the USD. If centralized stablecoins are not your cup of tea, then DAI is definitely for you as a decentralized stablecoin backed by a basket of crypto assets, including PAX Gold! Last time we saw USD backed by gold was in 1971. This is quite unique. You can mint DAI by smartlocking other crypto assets. USDT uncertainty and lack of transparency in their holding will continue to create a market for sound alternatives like USDC and DAI. It's important to mention BUSD also gained significant market share as a stablecoin by Binance.
5. BNB (runner up: FTX). With Binance being the de facto leader in the crypto exchange market as well as an innovator in the sector, we cannot ignore its coin BNB which has seen a tremendous growth over time. BNB has many attractive use cases, from trade discounts on the Binance exchange to being the native token on the Binance Chain. With Binance posting a wooping $80 billion in daily trading volume on 4th January 2021, it's hard to ignore the use case/value of BNB. FTX token comes second here and it is one of the fastest growing exchange tokens, seeing exponential growth, in line with its corresponding exchange volume.
See my other idea for Part 2 (ranks 6 to 10).
What do you think about the above list and what are your recommendations for this year? Let me know below.
Top altcoin picks in 2021:
1. ETH (runner up: DOT). ETH remains one of the best picks in the altcoin market. This is because its market dominance and ecosystem is the envy of most other alts. While there are some scaling challenges for ETH (to be addressed in ETH 2.0), the momentum of its ecosystem - which is best reflected in the emerging Decentralized Finance/DEFI (now valued at $22 billion) - cannot be ignored. DOT is our runner up, which could be seen as a live and working ETH 2.5. DOT is the 5th largest coin by market cap at the time of this post after an exponential growth in early 2021. This testifies its strong fundamentals.
2. XLM (runner up: ADA). XLM is consistently the blockchain with the highest average number of transactions (via coinstats) at around 30 mil transactions / week. The news that USDC stable coin will be available on XLM network in early Jan 2021 and that central banks (e.g. Ukraine) piloted their central bank digital currencies using XLM indicates REAL adoption is taking place positioning XLM as one of the leading blockchains for the world’s financial system. XLM having near instant and free transactions makes it even better. ADA or Cardano boosts a very strong team and in its third phase will focus on smart contracts integration rivaling some of the activities on the ETH DEFI market. I purposely left XRP out because with the SEC lawsuit ongoing, it's best to stay away.
3. LINK (runner up: GRT). As a decentralized oracle network solution, LINK is the to-go solution for smart contracts. With DEFI and ETH ecosystems growing exponentially, LINK became a staple of such solutions and with it, its price and market cap made it a top 10 coin. GRT or the Graph is our runner up as one of the most popular indexing protocol on the ETH ecosystem. Some called it the google of blockchains, indexing blockchain data for real use cases. For this reason it is another go-to solution in the ever expanding ETH ecosystem.
4. USDC (runner up: DAI). What - a stablecoin? Yes, you need to know your crypto. USDC is positioned to rival USDT market cap in time, seeing a 4x increase in the past few months and being the second most used stablecoin. With Goldman Sachs backed company Circle as the creator of USDC, you can't go wrong here. USDC is your best bet for a centralized, safe, secure and reputable stable coin pegged to the USD. If centralized stablecoins are not your cup of tea, then DAI is definitely for you as a decentralized stablecoin backed by a basket of crypto assets, including PAX Gold! Last time we saw USD backed by gold was in 1971. This is quite unique. You can mint DAI by smartlocking other crypto assets. USDT uncertainty and lack of transparency in their holding will continue to create a market for sound alternatives like USDC and DAI. It's important to mention BUSD also gained significant market share as a stablecoin by Binance.
5. BNB (runner up: FTX). With Binance being the de facto leader in the crypto exchange market as well as an innovator in the sector, we cannot ignore its coin BNB which has seen a tremendous growth over time. BNB has many attractive use cases, from trade discounts on the Binance exchange to being the native token on the Binance Chain. With Binance posting a wooping $80 billion in daily trading volume on 4th January 2021, it's hard to ignore the use case/value of BNB. FTX token comes second here and it is one of the fastest growing exchange tokens, seeing exponential growth, in line with its corresponding exchange volume.
See my other idea for Part 2 (ranks 6 to 10).
What do you think about the above list and what are your recommendations for this year? Let me know below.
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