Cryptocurrency pressure on the traditional asset market keeps growing. The gradual adaptation of digital assets in the fiat world and the high demand for a new financial instrument attract new investors day after day. At the same time, the issue arises before them – which project to give preference to.
Therefore, investors, first of all, should pay attention to Bitcoin (BTC). Behind this cryptocurrency is a huge community of users, investors, development teams, hardware manufacturing, and mining companies.
Let’s pay attention to the prospects of investing in tokens of projects of the decentralized finance (DeFi) sector.
In 2020, the DeFi industry is showing staggering growth rates, with $ 9 billion worth of crypto assets traded in early September, 9 times more than at the beginning of the year.
DeFi projects are quite promising, so it is recommended to keep part of the cryptocurrency portfolio in them. The main advantage of DeFi is to reduce the risks of working with counterparties when conducting financial transactions.
The choice of cryptocurrency depends on the ultimate goal. In order not to miss, the investor, first of all, must answer himself a number of questions. For example, why he needs cryptocurrency and what he will do with it.
If a person wants to get a quick income, he will be able to use the coins that are “on everyone’s lips” now: Bitcoin Cash, EOS, Dash. Those who want to buy digital assets for non-long-term retention with the subsequent profitable sales, other cryptocurrencies are suitable. This is Ethereum, as an example.
The Ethereum 2.0 update will lead to an increase in network power, and in the future, a significant increase in the ETH rate is possible.
At the same time, Bitcoin is an effective choice for long-term investments. BTC is always in trend and differs from other digital assets with good prospects for positive movement.
Let’s pay attention to the fact that part of the cryptocurrency products after the fall in 2018 migrated to fintech. Defi tokens deserve special treatment. At a minimum, they should not be taken on a par with traditional financial instruments.
Before deciding to invest in any particular DeFi project, you need to study it. In particular, it is important to pay attention to the realism of the business model, the level of authority of his team, and to check the legality of the startup.
TOP Cryptocurrencies To Invest In 2021: Ethereum, XRP, BNB, Cardano
What Cryptocurrencies Can You Add To Your Portfolio In 2020?
Unprecedented Growth: How To Invest In The DeFi Market
Bitcoin Forecast For July: Is This Explosive Growth Or The Best Time For Purchasing?