Nikita Zuborev, Senior Analyst at Bestchange.ru, on why privacy-focused tokens may grow in popularity in the coming months
The opinions of experts may not coincide with the position of the editorial board. topplabs.org does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
The cryptocurrency market shows certain trends in growth cycles. Usually, the primary growth driver is bitcoin, then the main altcoins and at the very end “junk” assets grow. Before the start of a long stagnation, the market most often goes through all these stages gradually.
The essence of the investment idea
Taking into account the traditional market trends for cyclical and periodic growth, Bitcoin stagnation may begin in the coming months, followed by the redistribution of capital to the main altcoins.
And if we consider the trends of central banks around the world to create CBDCs, which most enthusiasts regard as "crypto-fascism" – a tool for total surveillance of citizens and a way of censoring transactions as opposed to free cryptocurrencies, then we can expect a response from the community.
If you combine these two factors, as well as statistics that indicate that not the entire market has recovered from the fall after the May rally, you can make a mid-term bet on anonymous cryptocurrency tokens.
Description of the idea
There is a high likelihood of increased interest in anonymous altcoins in the next 2-3 months, so we advise you to take a closer look at some of the most popular of them. You can buy in equal proportions:
- Monero – 25%
- ZCash – 25%
- Dash – 25%
- Komodo – 25%
We expect by the end of this year that at the beginning of the serious stagnation of bitcoin, the altcoin market will receive a large inflow of liquidity and the portfolio will multiply in price.
The idea should not be viewed as the main investment portfolio, but as part of a long-term portfolio, it can pay off.
Idea risks are common to the entire market. In rare cases, the growth of bitcoin can go into a long-term correction very abruptly, without observing the growth sequence "bitcoin" → "top 20" → "rest".
If the bearish trend prevails in the market, at first the selected altcoins may feel worse than the market, although in the medium term the demand for assets is at a fairly stable level and a deep fall is likely not to occur.