Experts' Take: What Altcoins to Invest in May
Main page Finance, personal finance, Crypto Market, Cryptocurrency
Hot topic
April 30, 2020

We reached out to several experts to find out which altcoins are worth buying right now.

Victor Argonov, EXANTE analyst

Recently, the cryptocurrency market has reached a significant milestone: it completely regained its record drop on March 12-13. Now its capitalization is $256 billion — even higher than March 11th before the collapse. Even though the February maximum of $307 billion has not yet been reached, this recovery indicates that the cryptocurrency market has overcome the most panic part of the sale.

Interestingly, the crisis test showed the fallacy of the popular idea of ​​2019 that altcoins are "out of fashion." Altcoins are back on horseback.

To see the prospects of cryptocurrencies, people analyze the dynamics from the beginning of the year (including rally, fall and recovery). We have also used this method quite often, but today we will look at the situation differently. Events before the pandemic lost relevance in a sort as not all assets that were promising back then retained their prospects today.

To highlight the most promising projects today, we list the first thirty crypto assets by market capitalization, which showed the best growth since March 11 — that is, in the acute phase of the crisis.

First, we note coins that have risen in price by 10% and higher (at the time of writing):

  • Stellar (XLM): + 31%. The most famous competitor of the ripple (XRP) project, capable of performing the same functions (in particular, providing interbank communications), but in a decentralized format without reference to a private company.
  • Cardano (ADA): + 12%. One of the most popular PoS blockchains with support for smart contracts. Its important drawback is the high degree of concentration of capital in a few participants. Unlike, for example, the Tezos PoS blockchain (XTZ).
  • Monero (XMR): + 13%. The most popular anonymous cryptocurrency. Interest in such currencies is naturally growing amid attempts by states to limit and regulate the cryptocurrency market. XMR is famous for its optimization for PoW mining directly on personal computers, as well as scandalous stories about trojans that force your computer to mine XMR for someone else.
  • Coin (CRO): + 15%. The currency of the payment company, focused on the introduction of cryptocurrencies in real trading.
  • Dash (DASH): + 11%. The second most popular anonymous cryptocurrency. Unlike XMR, it uses the principle of PoS and in the usual sense does not allow mining.

The following coins have achieved more modest, but also positive results since March 11:

  • Tezos (XTZ): + 3%. The most popular PoS coin for stock exchange staking. Actively used in this capacity since the end of 2019. It is considered as one of the least centralized PoS coins.
  • Unus Sed Leo (LEO): + 7%. The internal token of the Bitfinex exchange.
  • ZCash (ZEC): + 5%. The third most popular anonymous cryptocurrency.
  • OKB (OKB): + 8%. OKEx Exchange Internal Token.

Oleg Chebotarev, journalist, crypto-investor

Despite the obvious advantage of digital currencies with an independent emission center over traditional currencies that are dependent on central banks, it is difficult to say where is better to keep your savings amid the global financial crisis.

However, I can traditionally advise several altcoins, investments in which will not only help save your money, but, with the right strategy, even bring a certain income. First, tether is rather a popular token, which, according to its creators, is tied to the US dollar by 20% and is a unique symbiosis of stablecoin and speculative coin. Investing in this altcoin will help to save your investment for a long time.

Further, of course, ether, which is my most respected tool for working in the cryptocurrency market. Featuring a traditional small but steady growth, ether remains an excellent long-term investment option.

And finally, ripple — an altcoin with a huge history of development, one of the few serious examples of the tight interaction of cryptocurrency and the real, in this case, banking sector. This is a reliable tool for long-term investment and settlements when making payments.

Igor Kuchma, TradingView analyst

Since the beginning of the year, the BTC dominance index has dropped to 65%, the cryptocurrency market capitalization has grown up to $250 billion, and the altcoins index, combining ETH, EOS, XRP, BNB, TRX, LEO, BCH, BSV, and LTC, has grown up to almost 30%. This suggests that we are witnessing a new growth in the cryptocurrency ecosystem, which can lead to an increase in the value of altcoins.

The fall in bitcoin volatility also indicates the maturity and consolidation of the bull market. The leading cryptocurrency showed higher results amid the fall in leading stock indices though. Thus, the UKX index fell by 20.77%, DJI — by 15.43%, SPX — by 10.90%, NDX grew by 1.20%, and BTC/USD — by 8.25%.

This does not mean that bitcoin has suddenly turned into a safe haven asset. In different periods, the main cryptocurrency showed different correlation with the stock market. For example, in 2018 BTC fell along with stocks.

According to Guy Hirsch, eToro's US managing director:

"There is a growing consensus that due to the Fed announcing unlimited quantitative easing, investors could soon be looking to bitcoin as an inflation hedge against a depreciating dollar."

Even the world-famous businessman Robert Kiyosaki predicted a quick death for the dollar and advised investing in gold or bitcoin due to the Fed's policy, in particular, uncontrolled emission of new money.

On the other hand, do not forget that there is not much time left until the third BTC halving (May 12). The last time, immediately after the reduction in remuneration, the BTC went down for a while, but already in September 2016 the price went up. Thus, we can conclude that a decrease in the number of miners has historically positively affected the price of BTC. It's all about reducing supply.

Given the fact that Bitcoin usually determines the direction of the entire market, it can be assumed that many altcoins will show a similar movement.

Now there is bullish activity on the XRP/BTC chart, if it just breaks the resistance line at 2646. There is similar outcome for ETC/BTC — the main support areas are at 7900 and 7700. It is also possible that the market will enter for a while in the consolidation phase.

This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied on for, tax, investment, legal, financial or accounting advice.

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