In addition to Bitcoin on the digital money market, there are several options for investing funds in order to earn money in the long term.
How to identify a project worth investing in?
There are a couple of simple indicators that can give an idea of the seriousness and potential of each cryptocurrency:
- Its market capitalization , that is, the position at which it is located, and the share of the coin in the total market value of cryptocurrencies;
- Community of followers and developers. When a cryptocurrency has a large and developed community, this often speaks of good prospects for the project;
- News agenda : successful projects will interact with the media, and thus increase the credit of confidence in their cryptocurrency;
- Expert analytics of leading economic portals dedicated to cryptocurrency.
Top 5 cryptocurrencies that deserve to be in the portfolio of every crypto investor
No long term bull market can have a single leader. There are periodic changes where a leader goes into a correction and others take the lead. This kind of rotation is currently taking place in the cryptocurrency markets: ETH and XRP are leading, while BTC is slowing down.
Market cap : $ 68 million
Technology : ETH is the cryptocurrency that Ethereum runs on. It is a decentralized software platform that allows you to create and run smart contracts and decentralized applications (DApps). Ethereum is not just a platform, but a Turing-complete programming language.
The Ethereum 2.0 deposit contract now contains 739,520 ETH ($ 424 million) with the required 524,288 ETH. This exceeds the threshold required to activate the Ethereum 2.0 update.
Ethereum creator Vitalik Buterin said in his Twitter account that the system for launching ETH 2.0 had crossed the 50% mark. After that, the cost of ETH rose to $ 600.
The value of BTC locked in Ethereum has exceeded $ 3 billion. The current Bitcoin bull cycle has contributed to the increase in the number of tokenized BTC in Ethereum. After hitting an all-time high of 175k BTC last week, the number of blocked BTCs has dropped to 170k, according to DeFi Pulse.
On November 20, 2020, ETH went up to $ 489. On November 22, an attempt was made to stop the growth, but the bulls quickly neutralized this threat. Both moving averages sloped upward, which indicated that the bulls were in complete control of the market.
According to analysis by TradingView analyst Vince Prince, Ethereum has formed a preliminary upward wedge formation. According to the expert, now the market is ambiguous and both sharp falls and quick ups are possible. The stabilization is most likely to happen when ETH moves to the standby cluster, marked in blue on the chart, where several support levels are combined. Ethereum has good potential to rebound within this cluster and form an upward momentum from there, Prince predicted.
If we compare the news agenda and technical analysis, we can come to a common denominator: in the long term, ETH is the most promising cryptocurrency. The only drawback is the high cost of commissions within the network, but this problem should be solved in ETH 2.0.
Market cap: $ 30 billion
Technology: XRP is a centralized cryptocurrency created by Ripple Labs as a solution to enable banks and financial institutions to leverage the power of blockchain technology to improve cross-border transaction systems. XRP runs on the RippleNet digital payment platform on top of a distributed ledger database called XRP Ledger.
- Ripple Seeks Director To Work With Central Banks To Create Digital Currency;
- New Ripple USPTO Application: PayString Trademark ;
- Over the course of a day, the XRP token has risen in price by 60% and reached its maximum since May 2018.
In the past few days, XRP has proven to be one of the most efficient among the largest altcoins in terms of capitalization. There was a parabolic rally, as the bulls completely control the price movement of the token, explained analyst under the nickname CryptoNekoZ. He suggests that the coin may cross the $ 0.7 threshold and continue to rise in price in the long term.
Growth Outlook: XRP has jumped 91% in the last month as the digital asset caught on. The catalysts for strengthening XRP are the growth in the number of unique addresses, the buyback of tokens by Ripple and the possible launch of a new product.
Market cap: $ 6 billion
Technology: Chainlink is a decentralized network that aims to connect smart contracts with data from the real world.
Vince Prince points out that LINK was trading in an upward channel formation where it formed an important triangle. The coin has now fully formed with a break above the border and closed above the volatile green candlestick.
LINK has already stepped back to the upper bound once, which it is currently testing. The fact that LINK broke above the border gave the currency a good bullish pace, the analyst said. This structure provides good potential for further movement and makes LINK one of the most optimistic cryptocurrencies in the long term.
From the point of view of fundamental analysis, LINK is currently subject to a wave of a bull market, but in a short time it can be expected to fall: the news agenda is silent, and there are no updated reports on the implementation of the project on the platforms. However, the trend indicates further growth. LINK's controversial position is the basis for short-term speculation in the wake of rising asset values.
Market cap: $ 5 billion
Technology: Litecoin is created on the basis of the Bitcoin protocol, but differs in the used hashing algorithm, hard limit, block transaction time
According to TradingView analyst Vince Prince, Litecoin still has strong resistance levels on the 2-hour chart, so the price may still decline. At the same time, Litecoin continues to trade within the ascending channel formation. In addition, Litecoin has an important downtrend resistance line, marked in black on the chart. This may indicate a future trend change to a downtrend.
Vince Prince believes that the final confirmation of the bearish decline will occur when LTC falls below the 35-EMA, marked in green on the chart, and the 55-EMA, marked in red, closes below the 35-EMA. This will be the final confirmation of a further downward movement and an increase in the "bearish" market share until support is found that can reverse this dynamics again, the analyst is sure.
Globally, LTC is still in a more bullish state, so a price drop could be a good investment opportunity. One of the reasons is the addition of option contracts to Litecoin by the Binance cryptoexchange.
Bitcoin Cash (BCH)
Market cap: $ 6 billion
Technology: Bitcoin Cash is a peer-to-peer system created to become a secure global money with fast payments, micro-fees, high levels of privacy and high transaction capacity.
- Bitcoin Cash Node wins the hard fork ;
- Bitcoin Cash analytics from topplabs.org
On November 21, Bitcoin Cash broke through the resistance at $ 280. Cointelegraph analyst Rakesh Upadhai explained that the bears failed to hold lower levels on November 22. This suggests that bulls are using price pullbacks to buy. Both moving averages are sloping upward, and the RSI is in positive territory, indicating that buyers are in control of the market.
Bitcoin Cash completely pits the news agenda against technical analysis. The coin has growth potential, but the split within the community is slowing the process down. BCH can be viewed as a long-term investment because many investors believe that it is subject to the “BTC effect”, that is, it is growing after the first cryptocurrency, but with a belated effect.
Top 4 Forgotten Tokens with Promising Growth Trends
Market Cap: $ 3 billion
Technology: Stellar is an open source, decentralized platform that connects banks, payment processors, and people. This platform was designed to facilitate cross-border transactions to make them faster, cheaper and more secure.
- Center Consortium announced that USD Coin (USDC) will soon be available on the Stellar blockchain ;
- Completed upgrade to Protocol 15 .
Anoinvest analyst believes that XLM is gaining good volumes and could be a profitable solution to play in the market. The expert advises to pay attention to BTC / XML trading, and not standardized deals with fiat currencies or USDT, because XLM's “trend behavior” strongly resembles BTC.
XML tends to rise in the wake of XRP, so it could be considered for addition to an investment portfolio in the short term. After Stellar top manager Justin Rice announced that Stellar had upgraded its protocol from version 13 to version 15 on November 23, the price of XLM rose 68%.
Market Cap: $ 5 billion
Technology : Cardano is a Proof-of-Stake blockchain platform used primarily by agricultural companies to track fresh produce. It also allows you to store data in a tamper-proof way, and for retailers to stop counterfeit goods.
- Cardano creator Charles Hoskinson announced plans to attract 1 billion users ;
- Updated information on financial contracts .
Vince Pierce's chart shows Cardano approaching the strong upward resistance line marked in red.
It is likely that the value of the cryptocurrency will correct before it continues to rise, the expert suggests. These pullbacks will continue until a support zone is found. In this case, it is likely that it will be within the reserve cluster marked in blue on the graph. It is important that the ADA rate does not fall below the cluster, because this can lead to a trend change and the beginning of a downward movement.
Regardless of the optimistic outlook shown by the news and ADA metrics, according to the technical analysis of the cryptocurrency rate chart, a correction may begin in the near future. From the point of view of long-term investment, Cardano can be considered, but not the fact that it is worth opening orders during the current rally.
Market Cap: $ 3 billion
Technology: EOS is a platform that enables developers to build decentralized applications. The goal of the project is to make it as easy as possible for programmers to master blockchain technology and to make the network easier to use than its competitors.
- Google Cloud has become a network block producer by joining the EOS blockchain community
- Spielworks Created Cryptocurrency Rewards and Loyalty Platform on EOSIO
TradingView analyst Marginbuu believes that EOS is currently overcoming important resistance. As soon as its price rises above $ 4, a parabolic rise to $ 10 + will follow.
The EOS team actively supports their product. Thanks to the use of the DPoS consensus algorithm, the scalability of the project is at a high level. Using SegWit, TaPoS, DPoS, EOS aims to optimize all resources on the network and has a chance to capture a large market share. With the further development of EOS, the value of the asset has the ability to continue to grow.
Market cap: $ 1 billion
Technology: DASH is an open source blockchain and cryptocurrency focused on providing a fast and cheap global network of decentralized payments.
- US Attorney General William Barr announced the release of a document titled "Cryptocurrency: An Enforcement System." The publication, produced by the Attorney General's Cyber-Digital Task Force, discusses the basics of tackling “emerging threats and enforcement challenges associated with the growing diffusion and use of cryptocurrency” ;
- Dash officials argue that Shapeshift subdivides anonymous cryptocurrencies incorrectly .
Fundamentally, DASH is interesting as it is one of the oldest cryptocurrencies. It was launched in 2014. The token has experienced two lingering bear markets. This is important because each additional period of survival implies a longer remaining life span.
Dash has returned to its original 2015 trendline for the third time in a year. This time, spending a few weeks building up a support level of support.
DASH, unlike other projects, is one of the oldest cryptocurrencies, which is still supported today. The news background shows that regulators are constantly trying to "put a spoke in the wheels" of the project due to its anonymity, but the developers continue to follow the plan. If at some point cryptocurrencies are implemented into everyday life on an ongoing basis, Dash has every chance of becoming one of the first.