We spoke to experts about which altcoins to buy right now.
Alexander Kuptsikevich, FxPro Lead Analyst:
Choosing altcoins to invest in can be especially difficult right now. First of all, if we are talking about short investment periods, then you need to understand whether incentives will continue in the United States. If the printing press continues to work, investors will continue to buy risky assets, most of them will still affect only bitcoin and the ten largest altcoins. However, if incentives do not increase, the stock market will start to fever, it is worth taking a break and waiting for the market to show the maximum correction depth. If bitcoin breaks through $ 40,000, the correction process may continue and new opportunities for investing in alts will open up. It is worth choosing altcoins with the maximum drawdown and the most favorable prospects in technical and economic terms.
First of all, in the event of a large-scale fall, it is worth buying fundamental altcoins, including ether, Polkadot, recently Binance Coin, Cardano, coins of the DeFi sector. In the case of a wide trend reversal, it is worth betting on those directions where there was a movement and without a price rally and speculation. First of all, these are blockchains, on which decentralized financial applications and stablecoins can work, which means that it is still worth looking towards the ether, as well as its competitors. As for small coins, where you can catch profit on the pump, channels with signals help here. Projects like Flamingo (FLM) will go into the mainstream of the cryptosphere, but the community is monitoring signals on various channels and benefitting from such pumps.
Dmitry Gurkovsky, RoboForex analyst:
The ether rate has dropped noticeably lately, but this happened due to a general correction on cryptocurrency exchanges. At the same time, the altcoin still looks strong and retains the potential for a return to at least past highs – about $ 2,000. It is not a fact that this will happen in the near future, but the deepening of the correction adds new opportunities for entering the market.
Altcoin XMR in the previous wave of correction did not reach the area of strong supports of $ 180-185, which brings us back to the idea of a gradual growth of the token to $ 230.
In XRP, it is worth showing restraint and waiting for a greater decline in the exchange rate amid the correction and litigation of Ripple with the SEC. Token purchases can be interesting for about $ 0.35.
In March, the 3.0 NEO mainnet will be launched, which can have a positive effect on the positions of this cryptocurrency. By the beginning of March, the NEO rate managed to correct after the February rally to $ 36 and is ready to rise to the area around the $ 42 mark.
This month, the release of the European stablecoin Avalanche is planned, which is already traded on several cryptocurrency exchanges and, according to CoinMarketCap, ranks 44th in the ranking of the most powerful digital currencies with a capitalization of $ 1.7 billion. The release of the token to a larger number of exchanges will increase attention to the asset and help its growth – the price may rise to $ 45.
Vladislav Utushkin, CEO of TTM Bank:
First, you can continue to invest in bitcoin Is the most reliable and stable cryptocurrency on the market at the moment. Do not be afraid of the high rate, you can buy not the whole BTC, but its shares. Moreover, now bitcoin, having touched another historic peak of $ 58,000, has returned below $ 50,000 again. As a highly volatile asset, cryptocurrency should be bought in equal shares at equal intervals of time. Thus, the investor will be able to average the entry price to the asset. Yes, he will not earn as much as the one who bought at the bottom and sold at the peak. But let’s be honest: very few people manage so subtly to anticipate all market movements. Averaging helps to reduce the risks of buying an asset at its peak and then waiting for a long time, when this asset will return to its peak values again. Consider those who bought bitcoins for $ 20,000 in 2017. It took three years for them to be in positive territory. How many of them showed such patience and did not sell coins in the red, succumbing to momentary emotions?
Secondly, in the same way – in equal shares at equal intervals of time – it is worth buying ether… While the situation for the ether is very favorable, the deposit smart contract is full of coins, the community members are optimistic about the future of the ecosystem, and so far there are no prerequisites that the ETH 2.0 update process will be delayed or not take place.
Thirdly, you can dilute the investment portfolio with tokens of various trading platforms: these are Binance Coin, Huobi Token, Uniswap… Trading activity on crypto exchanges, I think, will continue to grow as new users enter the crypto market.
Igor Kuchma, Analyst at TradingView:
The two main assets of millennials – Bitcoin and Tesla – continue to correct, hence the question arises, is the bubble finally bursting?
Despite a little panic from traders and the media, the main cryptocurrency is still enjoying unprecedented interest. So, Microstrategy announced that it will continue to invest part of the capital in bitcoin in the future. Of course, these are only promises that can be broken at any time. On the other hand, the world’s first bitcoin ETFs have recently entered the Canadian market. In just the first day of trading, more than $ 165 million in Purpose stocks changed hands.
With support from Ark Investment Management’s Katy Wood and news that Square Inc. has increased its share in cryptocurrency, most likely, interest in crypto ETFs will grow even more. To do this, Evolve Fund Group from Canada lowered the price of its bitcoin ETF to 0.75% from 1%. Despite the success, US regulators continue to deny approval of Bitcoin ETFs. John Danielson, an economist at the London School of Economics, even stated that the further growth of BTC and crypto will lead to a catastrophic increase in inequality in the world and, most importantly, will serve as a huge threat to the current influential elites.
Be that as it may, March has traditionally been a bad month for Bitcoin, and this could mark the start of the current upward trend in the cryptocurrency market. In March 2020, the main cryptocurrency fell from $ 10,000 to $ 3800 in just a few days, along with stocks and other assets. For five years in a row, the situation had been repeated before. The only question is, will history repeat itself? Over the past 2-3 days, bitcoin has fallen by 20%, and the decline in some altcoins has reached even 50%.
However, the overall picture of BTC dominance hasn’t changed much over the past week. Some even expect a rebound in the dominance of bitcoin to 68%, which in turn may provoke an increase in the price of altcoins.
In the end, I would like to add that many novice traders and investors forget to create a plan. Instead, they start trading without testing their ideas and learning from others. Take advantage of the tools available to create a long-term plan! Add a plan directly to the chart, use the text notes at the bottom of the chart as a notebook or diary, create charts with indicators so you don’t lose your plan, and create alerts to remind you of something. All of these tools can contribute to your progress and long-term plan.
This article is the private opinion of the experts. The current analysis is not intended to be a guide to trading. ihodl and experts are not responsible for the results of work that may arise when using trading recommendations from the presented reviews.