Cryptocurrency investors are in an interesting spot right now, or perhaps I should say, spots. Some are deep underwater holding leprechaun sized bags of obscure alts and December priced BTC while others deftly surf along the corrective waves of this tumultuous crypto sea making quick profits from day and swing trading. Since January we’ve all been on a rather stomach churning ride and some of us have had enough of wincing after looking at Blockfolio and experiencing terrifying pangs of anxiety when Cryptowatch notifications go off in middle of the night.
Bitcoin and alts have taken quite the haircut, transforming handfuls of day traders into holdrs and also forcing many of those who purchased during the euphoric November 2017 rush to inadvertently become holdrs too. Volume is down across the board, but all is not lost. Downturns such as these provide plenty of time to research, reassess investment strategies, touch up on technical analysis and develop purchasing plans that will have you well situated for the next rally.
If you’re new to crypto and have a relatively empty wallet, this could possibly be the best time to purchase this year…
but please, don’t quote me on that!
Constant corrections have shaved most coins of 50% of their December value and with some prices back where they were before the gold rush of November 2017 it could be a good time for building up a position in some coins that are back to valuations not seen since last year. Therefore, without further ado, here are 5 altcoins for a hodl portfolio.
Stellar Lumens (XLM)
Stellar has had quite the fall from grace, descending all the way from 0.91 to 0.19 at the time of writing. While the fall is disheartening, what Stellar has to offer inspires loads of confidence. Stellar uses blockchain to make moving money ultra fast, secure and most important for businesses, cheap. Unlike Ripple (XRP), Stellar is decentralized and open so their service can be used by literally anyone. Current and future uses of Stellar allow multi currency transactions which ideally makes international payments and remittances painless and without fees from intermediary banks.
One criteria all cryptocurrency investors should look for is real world application, a strong development / support team and partnerships. At the moment, Stellar has multiple partnerships with large corporations, consultancies and payment processing businesses. IBM, Deloitte, Stripe, Wangxiang, LE.com, bext360 and SatoshiPay are just a few and a full list can be viewed on stellar.org.
Looking back to October 2017, Stellar traded below 0.05 and skyrocketed during November – January crypto craze so it’s definitely one to keep an eye on.
Crypto zealots straddle the fence on this coin, which has earned the moniker ‘Bank Coin’ since the ideology of decentralization does not apply to Ripple. Regardless of one’s personal philosophy, XRP warrants the attention of every investor. Upon reaching an all time high (ATH) of $3.84, XRP was up 36,000% in 2017 which is absolutely astounding.
Essentially identical to Stellar (XLM), Ripple’s payment network sends lightning quick payments from one party to another and at extremely low cost. Ripple aspires to serve as a replacement for the SWIFT payment system used by nearly every bank on the planet and the Ripple network has been adopted by and handful of financial powerhouses. Santander, Western Union, UBS, Moneygram, UAE Exchange, SBI (Japan), the Saudi Arabian Monetary Authority (SAMA), and BBVA (Spain) are just a few of the financial institutions that have adopted Ripple blockchain technology and 2018 will see more to come.
It should be mentioned that an area of concern for investors is the sheer number of xrp generated (100 billion), the fact that XRP is essentially centralized with Ripple retaining more than half of the tokens in circulation. Equally concerning, is the fact that XRP tokens are not always used in XRP partnerships as they have a variety of payment processing options so this has often translated to press releases about exciting new partnerships having limited impact on XRP price.
All this aside, XRP currently trades under 0.50 and could even sink back to 0.22 if market conditions fail to improve in the short term. Considering that XRP returned a 36,000% profit to early investors and they have real revenue generating partnerships with more than 100 financial institutions makes XRP a definite contender for a hodl portfolio.
The brilliance of IOTA resides in their distributed ledger design which allows for smart devices and other machines to exchange data and execute actions without third party involvement. The Internet-of-Things (IOT) is already upon us as multi-global corporations, governments and cities are reliant on smart devices, big data, cloud computing and cloud storage. Harnessing, analyzing and securing this information for the purpose of logistical planning and policy development and improvement is expected to revolutionize literally all aspects of human life and governance while also being a huge revenue generator.
The estimated value of the IOT ecosystem is around $267 billion with nearly 30 million devices connected within the next 2 years. Fast forward through all the technical details of IOT and IOTA’s Tangle network and the bottom line is, IOTA provides the missing link between smart machines, data generation, communication and the execution of task between a group of smart machines. To say that this is huge would be an understatement. IOTA has languished since dropping from an ATH of $5.25 in December and currently trades at 0.96. While this performance is utterly disconcerting, IOTA has great potential, a fantastic development team and late 2017 though early 2018 has seen IOTA lockdown impressive partnerships with the city of Taipei, Bosch Venture Capital, Volkswagen and apparently more partnerships are on the way.
Äs a privacy coin Monero (XMR) offers secure, untraceable transactions which essentially allow you to become your own bank. The XMR development team is community oriented like other coins and the benefit of this is the project attracts top talent and any attempts to regulate or interfere with Monero would be very difficult as the team works remotely without a set address. XMR ensures privacy via opaque blockchain and funds are untraceable as sent and received address data are encrypted.
As a range of factors have shifted bitcoin more towards a store of value coin and its success has drawn the attention of regulatory and tax hungry governments, privacy coins like Monero have become more popular for a range of investors and self employed merchants. XMR has come down from an ATH of $475 to currently trade at $168 and charts show that it recovers well during rallies so now could be a good time to set up a position.
Well, there’s certainly nothing obscure about this one and it could be argued that the best has been saved for last. ETH is a powerbroker and basically the father of alts with a market cap that sometimes threatens to overtake bitcoin. Ethereum provides a decentralized network which lets programmers develop decentralized applications (dapps). Utilizing this platform, virtually anyone can create their own token and ERC-20 contract options have inestimable value in this process, which explains the sheer number of tokens utilizing smart contracts.
Like most alts, ETH is currently in the corner licking its wounds after tumbling from a stratospheric valuation near $1400 but all is not lost. Nearly all initial coin offerings (ICOs) release tokens that are ERC-20 compliant and currently hundreds of alts utilize ERC-20. One could say ETH is especially attractive at its current price of $382 which hasn’t been seen since late November of 2017. As the cryptocurrency market matures and Buterin continues to lead efforts to improve and support research and development of dapps, Ethereum price is bound to rise.
What about ICX, ADA, NEO, KMD, TRX and…
Of course this list is not all inclusive. There are other alts that offer comparable, if not better technology and also have partnerships with powerful organizations. We all know about a handful of hype-coins with vaporware and shoddy white papers that continue to perform better during this current crypto catastrophe but there is a reason why they didn’t make this list.
For new investors, Q1 of 2018 has challenged the conventional investment logic of ‘hodl’ and ‘set it and forget it’, while those investors that got in early will quickly label such talk heresy. Regardless of your personal investment philosophy, one thing’s for sure, a building’s greatest strength is it’s foundation, and a hodl portfolio in 2018 will require FUD resistant coins that offer much more than rumor and gossip.
May the odds be ever in your favor and happy investing my friends!