Top cryptocurrencies 2021?
2021 has been a crazy year so far for cryptocurrency enthusiasts. Bitcoin was trading around $29,000 on January 1, 2021. It is currently trading at a price of $48,192, up more than 10% since dropping to $43,382 yesterday.
On December 30, 2020, I answered the question, “What are the best crypto currencies for 2021? There was a lot of interest from all kinds of people for this answer, and I enjoyed talking to many of you about my choices.
As of December 30, 2020, these selections have produced the following returns:
- EunoPay (EUNO): $0.00148 to $0.00199 (+34.4%)]
- Effect AI (EFX): $0.022 to $0.098 (+345.4%)
- Mantra DAO (OM): $0.058 to $0.285 (+391.3%)
- Lukso (LYXe): $1.30 to $8.93 (+586.9%)
- Presearch (PRE): $0.014 to $0.059 (+321.4%)
- LTO Network (LTO): $0.133 to $0.37 (178.1%)
- VIDT Datalink (VIDT): $0.56 to $0.558 (-0.35%)
These significant gains. And so, there are a few questions I often got:
- How do you select the projects you invest in?
- When and how do you take profits?
- What does your current portfolio look like?
So, I am happy to answer these questions for you:
How do I select projects to invest in?
How do you determine which cryptocurrencies belong among the top in 2021? First, it is important to mention that I have probably read hundreds of whitepapers over the course of the last few years. I would recommend anyone to start by reading whitepapers of successful projects and compare them to the projects you are interested in doing research on.
The metrics I look at are:
- Financial info (Are sales figures, etc. publicly visible? Have they held an ICO? If so, what terms applied? Are we still expecting private sale participants to receive tokens, if so, when? Since this typically results in a dump that provides the perfect buying opportunity)
- Fundamentals (Competitors, team experience, use case (USPs), product-market fit)
- There are probably more things I’m missing here, I’d recommend you check out previous research reports we’ve posted on YourCryptoLibrary.
When and how do I take profits?
As a rule of thumb, I sell about 50% of my position after it increases by 100%.
This allows me to take out my initial investment and still have enough holdings left that I can then partially sell at higher levels (usually in batches of 10-20% at a time).
For this, I mainly look at competitors, what is the market cap of these tokens and how does the market cap of the cryptocurrency I own compare to that? As well as the roadmap: are there any important milestones coming up and/or how good is this project in marketing?
This is somewhat of a defensive approach in a bull market. But making money is relatively easy versus keeping money.
Therefore, taking profits is always wise.
What does my current portfolio look like?
In order to make it as easy as possible for everyone to follow my movements, I decided to publish a personal ‘watchlist’ on Coinmarketcap (Accessed for free here).
Through this watchlist, anyone can follow the list and receive updates when I make changes to this list.
Important: this watchlist contains projects that I follow and am interested in. It does not necessarily mean that I own all this cryptocurrency.
For March to June/July, I plan to keep my current portfolio. I would categorize these as follows:
- Ethereum (ETH)
- Binance Coin (BNB)
- Polkadot (DOT)
- Spartan Protocol (SPARTA) – Research report
- Mantra DAO (OM)
- OctoFi (OCTO) – Research Report
- Presearch (PRE) – Research Report
- CSP DAO (NEBO)
- EunoPay (EUNO) – Research report
- GET Protocol (GET) – Research report
- Bakery Token (BAKE)
- Burger Swap (BURGER)
I expect Bitcoin and altcoins to continue the current uptrend. In fact, I strongly believe that Bitcoin can reach $100,000 before the summer and I manage my risk and exit strategy accordingly.
However, there is always a chance that we will fall further and end up in a bearish market. This depends on the overall world economy (stock market, gold, etc.). Realistically, I still think Bitcoin is the best hedge against the current inflation we are experiencing.