The market has had spectacular jumps these days. Its main feature is the volatility experienced by stocks and cryptocurrencies. In less than a trice, investors moved from the controversial GameStop (NYSE: GME) to shares of Newegg (NASDAQ: NEGG) and AMC Entertainment (NYSE: AMC).
Something similar happened in the cryptocurrency market. Bitcoin (CCC: BTC-USD), doubled in value after Elon Musk – Tesla bought $1.5 billion of the hitherto best-traded crypto on the market. Then investors turned their attention to Ethereum (CCC: ETH-USD), the second-largest crypto, and Dogecoin (CCC: DOGE-USD).
But now the DOGE fever has subsided, to the point that some believe the crypto is dead. If so then it’s time to explore new investment opportunities in cryptos whose rise is assured. However, it is worth managing a few clues about these emerging cryptocurrencies, before making a decision:
Dogecoin was the most bought crypto, but its losses have extended since June when it plunged more than 73% in just a few weeks. Retail traders danced for the fabulous gains made, as it made them millionaires. The experts’ forecast is for it to reach $0.482 by the end of next year and $0.895 by the close of 2025.
Diversifying the crypto wallet
Whether the pundits who consider Dogecoin dead are right or wrong, crypto investors should diversify their portfolios. You have to put your eye on cryptos with serious projects and raise your bet for the long term. Tokens should be chosen that yield higher utility than those offered by Shiba Inu (CCC: SHIB-USD).
Both Dogecoin and SHIB need to gain use-value in the real market. Otherwise, their funerals would be assured in the coming years. Faced with such a prognosis the investor should take foresight and incorporate into his portfolio other options that will last over time.
Our recommendation is to invest in these three cryptos:
- Ethereum (CCC: ETH-USD)
- Binance Coin (CCC: BNB-USD)
- Uniswap (CCC: UNI-USD)
Why buy Ethereum (ETH-USD)
Unfortunately, the cryptos that investors are currently focused on are very volatile. Any cryptocurrency that yields very small capitalizations, exaggerated or no utility at all, will fail irretrievably. When its livelihood is weak, all it takes is one group of investors to pull out and it will go into a tailspin.
Investments in cryptocurrencies should be made with their durability in mind. It is not a matter of running after the latest crypto trend, but of choosing one that is already established, that offers solidity and a base of convinced followers. Those who bet on the long term and prefer what is known, opt for Ethereum.
It is not for nothing that it is the second cryptocurrency with the best market capitalization. It is supported by a respectable $250 billion. That’s not to say it doesn’t ride the crypto market roller coaster or escape downturns in the face of regulatory fears. But it has in its favor that it is more stable than those of arbitrage tokens because they are susceptible to sinking with high speculative trading.
Ethereum’s usefulness derives from its very nature in this business. Based on this crypto, most arbitrage tokens were created. For example, if it were not for Ethereum crypto-like SHIB would not exist, as it was built on Ethereum. This cryptocurrency is very influential since it serves as a standard for the establishment of other tokens.
In addition, the gold-standard smart contract language as well as the increased scalability of the Ethereum network. It makes it more useful compared to other cryptocurrencies traded on the market. This is precisely why ETH was designed to be immortal.
Why buy Binance Coin (BNB-USD)?
Although it is the smallest crypto competing with Ethereum, it has a strength of its own. Binance Coin has one of the most comprehensive blockchain networks on the market. It competes more with Ethereum than Ethereum-lite and is one of the most popular crypto exchanges in the world. Its trading base holds more than 500 cryptocurrencies.
This makes it one of the most robust arbitrage platforms currently available. Likewise, it is the most important exchange in terms of the daily trading volume it handles. Some days it can reach Exchange operations over 13 billion dollars.
An interesting novelty of Binance is its product: Binance Smart Chain, which has served to improve BNB’s competitiveness with Ethereum. It was launched in September last year and so far the chain hosts hundreds of tokens of various sizes.
BNB owns the BEP-20 token standard which competes perfectly with Ethereum’s ERC-20 token standard. Apart from that, it forces Ethereum to share DApp production as well as the DeFi functionality it practically monopolizes.
Binance is in the race for crypto leadership. The popularity gained by its Smart Chain only adds points to the forecast that it can become a very productive asset in the long run.
Binance’s market capitalization is over $48 billion, which guarantees its holders some stability. Especially in a market as unstable as the crypto market. So if you are thinking of diversifying your cryptocurrency portfolio, BNB is a highly recommended bet.
Why buy Uniswap (UNI-USD)?
This crypto is quite similar to the previous two because it hosts the Exchange of various tokens. The only difference is that Uniswap users are not affected by crashes of centralized Exchanges in their own market. The reason is that Uniswap is the largest and most successful decentralized exchange (DEX).
This advantage allows Uniswap tokens to have a better chance of holding up over time. Both DEX and CEX (centralized exchange) have advantages and disadvantages. Investors, on the other hand, have their own preferences depending on their investment perspective and purpose.
If for you cryptocurrency investments represent a real frontier for finance, without central bodies regulating and dominating your own money, DEXs are your thing. Uniswap is the platform that comes closest to that idealized version of a crypto Exchange.
Uniswap’s Exchange has similar features to a centralized Exchange, except for a couple of things. Users cannot trade fiat money. That is, it only supports token-by-token transactions on its extensive network of Exchanges. But this is offset by providing the greatest anonymity to traders. In this sense, the level of security compared to that of a CEX is higher.
Uniswap concentrates a higher trading volume than any DEX in the market. On any given day, up to 800 million dollars can be traded on the token exchange. The Exchange is constantly being upgraded, the most recent upgrade its users have experienced is Uniswap V3.
With this upgrade, liquidity providers gain more control and have a new pricing system, which offers rewards to punters for taking more risk. Its ongoing upgrades and innovation coupled with the constant push of its decentralized Exchange. These features are what make Uniswap long-standing crypto.