Experts' Take: What Altcoins to Invest in June

iHodl reached out to financial experts to find out which altcoins are worth investing in right now.

Currently, the cryptocurrency market has reached the point where growth is increasingly correlated with the real development of companies. Moreover, after the recent events, many assets have corrected significantly and can now be considered for long-term investments from very good entry points.

1. SOL

Solana, a developing scalable blockchain protocol for creating decentralized applications (dApps) and smart contracts, is one of the most interesting projects so far. A full-fledged ecosystem has already been partially launched around the project, and now it is moving towards becoming an alternative decentralized finance (DeFi) platform. This is largely due to the speed of transactions and the low cost of internal fees.

2. Ether

It is planned that the Ethereum London hard fork within the framework of which EIP-1559 will be implemented already this month. The most important thing in it is a deflationary mechanism that can reduce the supply of ether, as well as a change in the structure of the transaction fee. At the same time, many market players expect the price of the cryptocurrency to rise.

3. BNB

One of the most anticipated infrastructure updates this summer is the launch of Binance's non-fungible tokens' (NFT) marketplace. Such an event is incredibly important for the cryptocurrency industry, as high fees in the Ethereum ecosystem discourage many users from working with NFT. In addition, the growth and volume of the DeFi ecosystem on the Binance Smart Chain continues to support the demand for BNB.

4.1inch

1inch, an aggregator of decentralized exchanges, is one of the most popular solutions in the DeFi segment. A full-fledged wallet was introduced in the App Store in April, and most recently there was announced a partnership with Mercuryo. With the Mercuryo integration, users of 1inch Wallet could buy DeFi assets using a fiat-on-ramp gateway. Besides, the 1inch Network has expanded to the Polygon (formerly Matic) network, one of the most promising scaling solutions on Ethereum. As a result, 1inch is turning into an infrastructure project before our eyes that will allow us to interact with fiat, DeFi and L2 solutions, and everything through our mobile wallet.

The cryptoassets linked to the DeFi and NFT markets are about to rise. For instance, MATIC grew by 330%, completely leveling the general correction of the crypto market, with an increase in the average daily turnover by 643% earlier in May. And in June, ether (ETH), which is responsible not only for DeFi, but also for NFT, is able to recover. Unlike most crypto segments, the NFT market did not lose in turnover: the sales of coins in May exceeded 82,000, while in January less than 22,000 of them had been sold. The May correction led to a significant drop in the cost of gas, which will spur young artists to more active use of non-fungible tokens, most of which are based on the Ethereum blockchain.

May was not an easy month for bitcoin (EXANTE: Bitcoin). The first cryptocurrency at the beginning of May was worth around $57,000, but for almost the entire month, the BTC rate continued to fall.

The center of events this month was Elon Musk, who used his publicity to speculate on cryptocurrency. On May 8, he appeared on the SNL comedy show, where he called dogecoin as an income. The same day dogecoin reached its ATH, the value of the coin pumped up to $0.74. Musk has brought many new investors into the crypto industry by increasing the volatility of top currencies. In this regard, the market has now dipped, which means you should buy. The question is which coin?

Bitcoin continues to be the favorite for those who see crypto as a long-term investment. Now, the cost of bitcoin is hovering around $36,000 and may fall to $30,000, but the rise is just around the corner. For all skeptics who believe that Musk ruined bitcoin by his intervention, I would say that such skeptics always appear before the next big fall, and there can be a million reasons. Yes, the recession is strong, but bitcoin also recently peaked at $64,000, so I think the next rally will be strong as well, and bitcoin's price will reach its new high.

Dogecoin remains a promising coin that will see its upturn yet. The main mistake of many is to base their attitude towards currencies on the attitude towards a person who actively supports this cryptocurrency. This is, of course, an example with Musk. Yesterday he was a hero, dogecoin is pumping, and the next day he is a villain as the currency has crashed. No, this is a normal state for a crypto world when it reaches some maximum and then begins to subside. If dogecoin still continued to rise, I would not include it in this list, because then artificial growth would be obvious.

Matic on the Polygon system, at the beginning of May traded at $0.79, and a couple of days ago the coin peaked at $2.21. Cryptocurrency solves the main problem of bitcoin and ether — large transaction fees. Matic takes the best of both worlds, smart contracts and the broader capabilities that ether has, and the consistent speed of Bitcoin transactions. This is done by the cryptocurrency using sidechain technology, which allows you to distribute smart contracts from ordinary transfers. In the future, I think this technology will be applied to all new cryptocurrencies.

Investing in cryptocurrencies should be treated the same way as investing in stocks. There is no need to constantly reshuffle your portfolio by buying and selling tokens. This approach will provide an annual profit that those who constantly change the composition of the cryptocurrency portfolio cannot count on.

The main advice that I would give to absolutely everyone who asks what to buy is buy bitcoin. It is the largest cryptocurrency in terms of market capitalization, which is currently not only an investment asset, but also a means of payment in many services. This provides bitcoin with a real future in society, including as an alternative to fiat money. Already, bitcoin has begun to be recognized by many large institutional investors, payment services and stores. Considering its current price of $36,000, buying bitcoin would be a great investment in June.

If you want to move away from "traditional" cryptocurrencies like bitcoin and ether, you can try to find alternatives in the form of altcoins. In June, many DeFi projects will be launched, the tokens of which can skyrocket in value in a matter of hours. Yes, it is very difficult to predict this, but it is possible.

Of the established altcoins, you should pay attention to siacoin (SC). This token represents an entire cloud storage project. It is completely decentralized, which allows data to be preserved even in the event of a complete failure of the main system. Currently, the coin is worth mere pennies and is trading for less than $1 apiece, but has a good capitalization.

Now, the Chinese cryptocurrency chia (XCH), which is actively grown on hard drives, will enter a large market. This token is attractive only from the point of view of speculation — there is a lot of interest in this cryptocurrency due to the new mining method. Instead of mining on GPUs or ASICs, it uses farming (growing) on ​​HDD and SDD spaces. This currency has great growth prospects, especially after entering the world's largest exchanges — Coinbase and Binance.

The share of altcoins in the portfolio should not be large. It is best to choose several promising projects that have decent coins, and it is better to make up the majority of the portfolio from stronger tokens — ether and bitcoin. This will reduce the risks of the portfolio, but at the same time maintain an acceptable return.

The crypto market is now going through a rather difficult phase, largely associated with yet another unjustified expectations. First, this applies to alternative cryptocurrencies. In the wake of the decline in the BTC dominance index and the impressive growth of the alto sector, many investors began to have mistaken thoughts about the loss of bitcoin's status of "locomotive." The market has once again put everything in its place, and now we can observe a sharp reversal of altcoins. The market situation as a whole resembles the beginning of 2018, when we saw the beginning of the crypto winter. In this case, the story may not be cyclical, given the changing driving force of the crypto market.

Nevertheless, the probability is growing that we have not yet seen the lows. Thus, in this case, it is worth refraining from investing in the largest altcoins, as well as in those that demonstrated the maximum growth over the past month. At least until the moment it becomes clear: we are now seeing a deep correction or still a wide trend reversal. If the latter, then for long-term investment it will be possible to wait for real lows.

Probably, we will not see such low prices as $100 per ETH, however, the rate may fall below $1000. At this stage, in the context of altcoins, it is worth considering trading rather than investing. You can bet on small coins based on signals in various telegram channels. Of course, the risks are very high, but at this stage, investing in the same ether or any other relatively large coin can turn into an expectation of years.

I am always for bitcoin: if there is an opportunity, then you should buy it, because nothing has changed from a fundamental point of view.

Next — BNB, because Binance Smart Chain is quite popular now and the further, the better and more. The scheme is as follows: Binance Smart Chain is currently relevant, but to use it you need BNB, and therefore we are investing in it.

Next comes huobi token (HT). The reason is the same as with Binance Smart Chain. Just last week, many protocols added Huobi ECO Chain as a network, and HT is required to use it.

Next on the list — Uniswap (UNI), a decentralized exchange based on the Ethereum blockchain. A very cool version, just "head off" and works well enough! The same service is built on Binance Smart Chain — PancakeSwap (CAKE). PancakeSwap is almost half its maximum. And he has good prospects.

I also like Venus, a copy of Curve or Ethereum, but it is on the Binance Smart Chain. Generally, all Matic (Polygon) recently, due to the formation of a strong community, look positive, and I would recommend them. This is what I keep and what I could advise.

May has become one of the toughest months for cryptocurrencies. Elon Musk's unexpected concern about the environmental friendliness of mining cost for bitcoin 39% of the market capitalization. Due to the high correlation, the fall of the main cryptocurrency was followed by the rest of the crypto market, or at least most of it.

The answer to the question of why Tesla is worried about the green component right now is not really that important, however, if it is due to pressure from regulators or even institutions, the situation does not look so rosy.

Be that as it may, bitcoin is still in the ranks, and companies continue to work on integrating cryptocurrency as a payment method. The only problem is that as the digital asset industry develops and the CBDC moves forward, regulatory pressure will only grow. For example, in the US, officials began to discuss the issue of expanding crypto regulation to better protect retail investors. To be more precise, the White House and Treasury also publicly support a new plan to target cryptocurrency as part of broader efforts to tackle tax evasion. In addition, the market is worried that Chinese miners continue to actively phase out without waiting for clarifications with crypto regulation.

Nonetheless, there was some good news. For example, PayPal allowed the withdrawal of cryptocurrencies to third-party crypto wallets. Bank of New York Mellon, in turn, opened a digital division in Dublin, which will provide, among other things, crypto custody services. Thus, it is safe to say that cryptocurrencies are fully transformed into a part of the financial system that they had to fight against.

Meanwhile, JPMorgan notes a surge in interest in second-tier cryptocurrencies, a rotation from blue-chip crypts to other riskier altcoins. Is the market waiting for another altcoin season? The answer is most likely no. The point is that it has been going on for a long time, only in the DeFi industry. Even Kevin O'Leary, the star of the American startup show Shark Tank, announced that he is launching DeFi Ventures, which will invest in DeFi.

Institutionals are attracted to products focused on the cardano (ADA) cryptocurrency. For example, the report of the CoinShares company says that the inflow of large capital into ADA is observed against the background of the outflow of funds from funds focused on bitcoin (BTC) and ether (ETH).

It is worth noting that the Alonzo smart contract testnet was recently launched by the development team at Cardano Input Output Hong Kong, or IOHK. Another cryptocurrency is ether (ETH), or rather the network's transition to Proof-of-Stake (PoS) consensus.

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