Cryptocurrency
List of Cryptos that could earn you big returns in 2021
Crypto analyst has given key insights on nine digital assets he predicts could be quite risky, and yet still profitable in 2021.
A widely respected Crypto Analyst, Lark Davis, has advised crypto-verse audience on his ideal high-reward, high-risk crypto portfolio for high returns in the coming year.
He gave key insights on a collection of nine digital assets he predicts that could be quite risky, and yet still profitable in the coming year.
READ: Over 50 million entities own Ethereum, as it trades around $600
What is Davis saying?
In the Youtube lecture seen by Nairametrics, he advised investors and crypto traders on holding the two top digital assets by market cap and two medium-cap altcoins to minimize risks.
“Even with such a portfolio though, I still think it’s a good idea to have exposure to Bitcoin at 20% and exposure to Ethereum at 10%. Now, this is going to just kind of reduce that danger within this portfolio, while also allowing for a lot of growth with the other 70% of the coins. Then, we’re actually going to bring in two medium risk altcoins: so 10% of Uniswap’s UNI Token, and 10% into the AAVE token. And again, we’re reducing risk here,” Davis said.
READ: Stellar outperforms many Cryptos, yearly gain hits 233%
The highly revered crypto expert also advised investors on considering allocating the rest of the 70% to five low capitalized crypto assets that he anticipates could appreciate in the coming year.
“And then for the rest of the portfolio, we’re going to be looking at higher risk coins. So, we have some low and medium stuff in there already to kind of reduce the risk in our high-risk portfolio, and then we’re going to go 10% into each of the following five coins.
READ: Cryptos: Nigerian financial experts talk risks associated with trading digital assets
“The first is Injective Protocol (INJ), this is a decentralized exchange protocol. The second is DIA, an oracle provider much like Chainlink (LINK), but with a much lower market cap. The third is called AXIE Infinity (AXS), a Pokemon-like crypto game that is super interesting, super cool. The fourth is the Orion Protocol (ORN), a trading terminal for the crypto market. And the fifth is Matic [Network], the premier layer two scaling solution for Ethereum,” he said.
READ: How BTC Whales can push BTC market value to $1 trillion
The expert further advised that though the digital assets seem to be relatively risky, they have incredible fundamentals and are nothing compared to much of what’s out there in the crypto-verse.
“People are investing in some pretty crazy stuff in the crypto market right now. I’ve seen people FOMOing into just insane coins with anonymous teams and they get rug-pulled and lose all their money. Bad stuff, right. All the coins I mentioned have professional transparent teams. They’re either currently having a working product or they’re soon going to have a working product. So, it’s all worth consideration there,” he added.
READ: Investors fast using stablecoins rather than money in keeping their profits
Cryptocurrency
Coin of the week: Ever heard of EOS?
EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion.
EOS was created and designed to allow developers to build decentralized apps (DApps). DApps are any computer applications whose operation is maintained by a distributed network of computer nodes, as opposed to a single server.
The EOS platform was developed by the company Block.one, to make it as straightforward as possible for programmers to embrace blockchain technology and ensure that the network is easier to use than rivals. It also aims to deliver greater levels of scalability than other blockchains which can only do a dozen transactions per second.
EOS was created by Daniel Larimer and Brendan Blumer. Brenden Blumer is an entrepreneur, who was one of the co-founders of Okay.com, a digitally focused real estate agency in Hong Kong while Daniel Larimer is a software programmer who has also started a series of crypto ventures such as the crypto trading platform BitShares and the Steem blockchain. They are both members of Block.one’s executive team, with Brendan Blumer as CEO and Daniel Larimer as CTO.
Why Invest in EOS?
Block.one stated that EOS can accommodate the demands of thousands of DApps, even if they were being used by a high number of people. Parallel execution, as well as a modular approach, are said to drive this efficiency.
EOS represents a truly democratic system that takes into account the will of the people, in this case, its token holders, as they can vote for block producers as well as other matters such as protocol upgrades.
Network Security
EOS, like many other coins, uses a delegated proof-of-stake consensus mechanism. This concept was conceived by Daniel Larimer and aims to solve some of the flaws that are seen in conventional PoW (Proof-of-Work) and PoS (Proof-of-Stake) systems.
As stated earlier, those who own EOS tokens can vote for representatives who will be responsible for validating its transactions. One of the advantages is that it helps eliminate consolidation, where smaller miners are pushed out by those who have greater levels of computing power and resources.
Price Analysis
EOS is currently trading $11.33 with 936 million coins in circulation and a total supply of 1.02 billion. EOS has gained approximately 466% return comparing its 52 weeks low to its current price today. It is currently down 49.71% from its all-time high of $22.89 that was last traded on the 29th of April, 2018.
Recently, after the Biden administration’s proposed tax hike, the coin dropped from its previous 2021 peek of $8.80 to a 0.236 Fibonacci retracement zone of $4.74, creating a new higher-low that indicates a bull market. No surprise that the market broke its previous 2021 high to create a new high of $13.18 on the 6th of May, 2021, following news of the coin proposing to increase its staking rewards. It is believed that this running will lead the coin to break its previous all-time high of 2018.
Although it is not advisable to buy coins at peak prices, recent news as earlier mentioned, suggests that an increase in demand for the coin is imminent. Block.one mentioned that the protocol needs to increase the rate of inflation from its current pace of 1% to a rate between 1.2% and 3.8% intended to increase financial incentives for voters and block producers. While token holders still need to settle on what exact size the inflation rate will increase to, the possibility of higher yields for community participation has brought demand to the coin.
A second major development for the protocol is the EOS PowerUp model, which intends to allow users to pay a fee to power up their account for 24-hours to transact on the network as opposed to paying a transaction fee for every transaction. Block.one mentions that the PowerUP model offers EOS token holders another way to earn a yield by depositing unused EOS tokens to receive a percentage of all the ‘power-up’ fees that are generated by the network. This has become an increasingly attractive option as investors are searching for ways to avoid the high gas fees (transaction fees) and network congestion on the Ethereum (ETH) network.
With the overall cryptocurrency market bullish and projects like Litecoin (LTC) and Ethereum Classic (ETC) reaching new highs, EOS is a blockchain project that could benefit investors as the cryptocurrency bull market continues.
Cryptocurrency
Altcoin season? Ether, ADA, Doge and others hit all-time highs
The cryptocurrency market is said to be in “Altseason” as the majority of the altcoins in the top 100 on CoinMarketCap.com rallied yesterday.
The cryptocurrency market is said to be in “Altseason” as the majority of the altcoins in the top 100 on CoinMarketCap.com rallied yesterday. Ether, ADA, Doge, and Ethereum Classic hit new all-time highs.
Several large-cap tokens reached multi-year highs but Bitcoin’s price struggles to hold any of the news-driven gains that it has accrued throughout the week. The recent pump in altcoins has led to the decline in the market dominance of Bitcoin over the past few weeks. According to analysts, this is another indication that the Altcoin season is here.
The market dominance of Bitcoin has dropped to 45.31% from the previous peak of 72.48% (as of January 2021) representing a 37.48% decline in market dominance. This means that the altcoin correlation with Bitcoin is relatively low and bitcoin is no longer a “drag” on other altcoins as bitcoin trades $56,500 (down by 12.84% from its all-time high) as at the time of writing this report.
READ: 3 altcoins likely to get price explosions in the next few months in 2021
What is causing the rally?
For Ethereum, over the past few months, high gas fees (transaction charges of the crypto world) have plagued the Ethereum network as a result of the volume of transactions executed on the network which is majorly driven by DeFi (decentralized finance) platforms such as Uniswap (UNI Token). This has caused investors to switch to other networks such as the Binance smart chain network which has cheaper gas fees. Ethereum just announced that its London hard fork network will be upgraded with the implementation of “EIP-1559.” This upgrade is expected for July 2021 and the network claims it will help to significantly reduce the gas fees.
ADA is going into the smart contract space with its “Alonzo Testnet” scheduled for lunch in May 2021. The recent rally in ADA should come as no surprise, as the popular saying in the crypto world goes, “Buy the testnet and sell the mainnet launch.”
READ: Crypto aftershocks send Doge crashing by 10%
Dogecoin, which started as a meme, created an all-time high following its listing on eToro and Gemini exchanges. The listing should come as no surprise because of the calibre of individuals that are pushing for the adoption of the coin – Mark Cuban, Elon Musk, Snoop Dogg just to mention a few names.
Ethereum Classic, popularly known as the “first Ethereum” has gained about 295% to create a new all-time high. Despite the security issues of the cryptocurrency, the coin has surged to new levels without any changes.
Other altcoins like Litecoin, EOS, Vechain, Steller have also surged significantly with gains of 20% or higher.
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