Experts' Take: What Altcoins to Invest in July
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July 1, 2020
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We reached out to several experts to find out which altcoins are worth buying right now.

Victor Argonov, EXANTE analyst

In June, the cryptocurrency rally was replaced by a correction, and most currencies did not show significant growth. Bitcoin is “squeezed” in the corridor of $ 9,000-10,000, its growth since the beginning of the year is + 27%, which is relatively modest. Some altcoins on this indicator are in a big plus today, but we will highlight only those that also have clear fundamental advantages. In parentheses is the growth of quotations from the beginning of the year:

  • Ether (ETH, + 75%). The second-largest cryptocurrency by market cap mainly follows bitcoin with more volatility though. Recently ETH just like BTC made an important step towards state recognition: the first legal ETH deliverable futures available to large players appeared on the ErisX exchange. Meanwhile, the US Federal Reserve is seriously considering the introduction of a new benchmark for interest rates AMERIBOR based on ETH.
  • Stellar (XLM, + 48%). A decentralized analogue of the Ripple payment system (XRP), which has lagged behind it for a long time, but today it is closing the gap. Since the beginning of the year, the XLM token has risen in price by one and a half times, while the XRP has fallen in price by 8%. The main reason for the fall of investors' interest in XRP is the system’s involvement in the private company Ripple Inc. Since 2018, it has been surrounded by scandals, and since 2019, there have been persecutions of corporate crypto projects in the world (closing Libra and TON, lawsuits against Tether and Ripple itself). This shifts investors' interest toward decentralized systems like Stellar (XLM).
  • Tezos (XTZ, + 76%). This PoS currency is one of the staking leaders at cryptocurrency exchanges. On Binance, XTZ allows earning passive income of 6-7% per annum. At the same time, comparing to the nearest PoS competitors (EOS, Cardano), XTZ stands out with a relatively low concentration of capital among the richest hodlers.
  • Monero (XMR, + 41%). Today it is the most popular anonymous coin, the demand for which (along with Dash, Zcash) naturally grows as the efforts of state control over the cryptocurrency market intensify.

Oleg Chebotarev, journalist, crypto-investor

It is expected that in July almost all countries will lift the restrictive measures introduced in connection with the pandemic and the world economy, with the cryptocurrency market, will start to gradually recover.

Currently, of all the existing altcoins, I can only recommend building up my portfolio on the air against the background of a short-term drop in the price of a coin.

ETH is a great tool for long-term investment. A coin with wide functionality and its own rather successful infrastructure has every chance to bring substantial profit to its owners, because the price of ether at the time of its peak reached a price of $1,500.

Sergey Mendeleev, founder of the Garantex exchange:

When a person asks someone's opinion on what cryptocurrency to invest in, this means only one thing — this person knows nothing about cryptocurrencies at all, and therefore it is better not to invest anything in crypto. First, one should at least study a little what cryptocurrency is, and then make a decision based on the knowledge and understanding of what risk is acceptable. Are you ready to watch your investments suddenly depreciate by 30-50%, and not to panic, ridiculously selling assets, going into the red?

I believe that right now is a "Time of Troubles" on the cryptocurrency market. Some people convinced of the imminent arrival of a new "Spring", while the others predict a tightening of regulatory control over cryptocurrencies and subsequent fall of the market. Both scenarios are possible. Therefore, it is worth choosing those cryptocurrencies that are most stable, if such a word can be applied to cryptocurrencies at all.

Bitcoin is one of the most stable cryptocurrencies. This is the first and most popular asset. It already has a reputation as a non-fraudulent project, although some economists from the ranks of the "old guard" call bitcoin a bubble and a financial pyramid. In the long run, I am sure bitcoin will increase significantly in price, but this is a forecast for the horizon of 5-10 years. On its way to the top, bitcoin can fall down to $3,000 more than once.

Among other cryptocurrencies, I would pay attention to TRON, which, to my mind, is gradually replacing the ERC-20 standard. Tether stablecoin issuer is now switching from ERC-20 to TRC-20, for instance.

Those who like to keep funds in the good old American dollar may use the most popular stablecoin USDT on the cryptocurrency market. Saving in USDT does not require storing the assets at home in a safe or under a mattress, they can easily fit on a small flash drive, the contents of which few ordinary robbers can guess. USDT is also ideal for entrepreneurs doing business with foreign counterparties: it can be used to quickly conduct cross-border transactions without the need to communicate with the bank.

Igor Kuchma, TradingView analyst

Despite a 31% increase since the beginning of the year, it cannot be said that 2020 is developing for bitcoin in the best scenario. Volatility has been increased, but this did not help to reach new highs, at least until today. Since the beginning of May, the price of bitcoin has remained relatively stable between $9,000 and $10,000, even though the number of BTC on the exchanges continued to decline. This could mean that people withdraw their bitcoins to keep them, instead of selling on exchanges.

Nevertheless, as noted by Bloomberg reporters, bitcoin continues to form a general tendency to lower highs. This completely eliminates the fact that the economic crisis is the best moment for cryptocurrencies. In addition, as repeatedly mentioned, the main cryptocurrency continues to deviate from the original purpose of its creator/creators. Satoshi Nakamoto wanted to create a transparent and decentralized payment system, independent of financial institutions. Kraken CEO, for example, said that bitcoin will equal the US dollar in its payment properties and surpass gold as a means of accumulation. The question is how this will happen, given such a high volatility.

From the other point of view if the control by the states continues to increase and eventually we encounter a violation of confidentiality, there is a high probability that the demand for payments that cannot be blocked will increase.

Speaking about potential altcoins, it is worth paying attention to litecoin (LTC). Over 300,000 new non-zero balance litecoin wallets were generated last week, according to the Litecoin Foundation. This may be due to a strategic partnership with the Cred cryptocurrency lending platform. Given the growing popularity of DeFi applications, the wave of new LTC wallets may reflect the desire of users to benefit from the DeFi hype. If the level of $40 is broken, the price may return to $38. On the opposite side there is still resistance at $42.

In the case of ether (ETH), the coin may lose its leading position if it fails to deploy the ETH 2.00 update and solve scalability problems. The high commission of ETH and the frequent congestion of the network create a unique opportunity for new projects.

In the end, I would like to note that the IOTA (MIOTA) developers announced the upcoming launch of a test network for the Coordicide protocol, also known as IOTA 2.0. The new version of the protocol should replace the centralized coordinating node and significantly speed up the network. Earlier this month, the company released a new version of the Hornet v.0.4.0 software for site operators. The update increased network bandwidth up to 20 times.

This article is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice.

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