Altcoins
Altcoins to Watch When Diversifying Your Crypto Portfolio
The appeal of “crypto stalwarts” like Bitcoin (BTC) and Ethereum (ETH) is undeniable when it comes to investing in crypto assets. Yet limiting one’s investments to these giants is to overlook the dynamic opportunities that the broader crypto market offers.
Diversification in the crypto space is a proactive strategy aimed at capitalizing on various technological advancements and emerging market trends. For savvy investors looking to unlock the full potential of their portfolios, looking beyond BTC and ETH is essential. Let’s take a look at how broadening your investment horizons can not only protect your assets but also significantly improve your returns.
Justification and capital allocation
In traditional investing, diversification can mean spreading your capital across different asset classes like stocks, bonds and real estate. In the crypto world, there are many promising stories that offer substantial growth. It’s also about strategically placing your bets on high-conviction opportunities. Imagine you invest in the 50 largest Indian companies. This will ensure that you grow at an average rate. If you want to beat the benchmark, we need to invest some capital in a handful of assets that perform above average. This is where diversification comes into play.
While BTC and ETH should definitely make up 80% of your cryptocurrency portfolio, it is prudent to diversify into altcoins. Of the remaining 20 percent, half can be allocated to the top 10 crypto assets and the other to strategic bets such as RNDR, JUP or even memecoins.
Stories to follow
The year 2024 has seen several narratives emerge in the crypto space that offer exciting opportunities for those wishing to explore beyond the mainstream. Here are a few to note:
AI and Blockchain: RNDR and FET
AI has taken the world by storm and the world of crypto is no different. Two major assets making waves in this space are Render (RNDR) and Fetch.ai (FET).
RNDR is a pioneer in the use of a decentralized GPU network for AI services, presenting a unique convergence of blockchain and AI technologies. With its current valuation and the growing demand for AI services, RNDR shows substantial growth potential.
Fetch.ai (FET) operates in the AI blockchain space, facilitating autonomous agent systems for various services. Its robust platform and innovative use case in decentralized AI services position it as a promising asset for growth. FET has shown resilience during bear markets.
DePIN or Decentralized physical infrastructure networks: Arweave (AR)
Arweave (AR) is making significant progress in the field of decentralized data storage. Backed by major industry players and featuring technology that has seen rapid adoption, AR is positioned for potential exponential growth, reflecting its strong foundation and market demand. This is a medium risk asset that could yield considerable returns.
Real World Assets (RWA): PENDLE and RIO
RWAs are essentially a link between real-world assets and the crypto world. In this space, Pendle offers an innovative approach to DeFi, enabling the exchange of future yield streams or tradable tokens.
Realio Network (RIO) offers a promising blend of traditional asset security and blockchain innovation. Its recent performance and strategic partnerships suggest strong growth potential. Essentially, RIO allows users to create new assets in a secure and decentralized process.
Solana ecosystem innovations: Jupiter and Dogwifhat
Jupiter (JUP) enhances Solana’s offering by optimizing liquidity aggregation, similar to Uniswap for Ethereum, but with potentially faster and cheaper transactions. This highlights the scalability of Solana. Dogwifhat (WIF), a memecoin within the Solana ecosystem, captures the lighter side of cryptocurrency investing while providing substantial growth during market uptrends. WIF should recover well if Solana’s memecoin ecosystem thrives.
Navigating the future
Investing in these new markets requires a mix of enthusiasm for new technologies and a prudent approach to risk management. Each of these assets carries its own set of risks and opportunities, and thorough research on the investor side is essential. It is also advisable to contact stock exchanges for professional advice.
As we continue to witness this market evolve, staying informed and agile will be key to the long-term success of your crypto investment journey.
(The author is the CEO of Giottus Crypto Platform)
Disclaimer: The opinions, beliefs and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs and views of ABP Network Pvt. Crypto products and NFTs are unregulated and can be very risky. There can be no regulatory remedy for any losses resulting from such transactions. Cryptocurrency is not legal tender and is subject to market risks. Readers are advised to seek expert advice and carefully read the offering document(s) and related important literature on the subject before making any type of investment. Cryptocurrency Market forecasts are speculative and any investments made will be at the sole expense and risk of the readers.