Consider Investing in These 5 Altcoins for the Anticipated Bull Run of 2024
Investing in altcoins can be lucrative as they provide diversification opportunities and potentially higher returns. However, approaching the altcoin market demands caution and thorough research. A comprehensive understanding of factors such as the development team, technology, community, and use cases of altcoins is crucial for making informed investment decisions.
Moreover, staying abreast of market trends and regulatory shifts is paramount for navigating the dynamic cryptocurrency landscape effectively. By meticulously assessing these critical elements, investors can formulate strategic plans when considering investments in altcoins. Now, let’s explore some of the altcoins worth considering for the anticipated bull run in 2024.
Which Altcoin to Invest in During the Next Cryptocurrency Bull Run?
Ethereum (ETH)
Market cap: $459.16 billion
Ethereum stands as one of the leading altcoins within the cryptocurrency market. Out of the extensive array of over 20,000 crypto assets, Ethereum commands a significant portion, holding more than 17% of the total market capitalization, which amounts to nearly $2.49 trillion. Ethereum operates as a distributed computing network, offering users the capability to leverage its blockchain for executing decentralised applications (dApps) and facilitating smart contracts.
Despite criticisms regarding the relatively high transaction fees associated with Ethereum, the platform remains resilient and indispensable in the crypto ecosystem. Thousands of applications and other altcoins are powered by Ethereum’s robust blockchain infrastructure, underscoring its enduring relevance and influence within the industry.
Solana (SOL)
Market cap: $58.39 billion
Solana has garnered significant attention from crypto investors, largely due to its remarkable transaction speeds and minimal fees. Serving as a blockchain platform, Solana is notably dedicated to addressing the prevalent challenges of speed and scalability encountered by numerous existing blockchains.
In the past seven days, Solana has experienced a notable surge, witnessing an increase of nearly 16.60%. On March 4, 2024, the platform recorded a substantial uptick of approximately 7% within 24 hours. This surge propelled Solana beyond the BNB coin, securing a higher ranking among the top five cryptocurrencies.
The surge in SOL’s value has propelled the digital asset to its highest point in two years, reminiscent of levels last observed in April 2022, shortly after the conclusion of the bull cycle in 2021. However, Solana’s position slightly retreated, settling into the fifth slot, with BNB regaining dominance shortly after on March 4th.
Cosmos (ATOM-USD)
Market cap: $4.85 billion
Cosmos (ATOM-USD) is positioned as a solution to address the issues of slow transactions and high costs prevalent in many blockchain networks. It was developed in collaboration with Tendermint software to establish an interconnected network of blockchains. ATOM, the native token of Cosmos, serves as the backbone of this decentralised network, offering developers open-source tools to create their interoperable blockchains. Cosmos aims to evolve into the “internet for blockchain.”
Within the Cosmos ecosystem, blockchains can voluntarily share tokens and data across the entire network. One of its primary functions is to safeguard the Cosmos Hub and manage the network of ATOM tokens through a proof-of-stake algorithm.
A recent report from the Cosmos blog emphasises the stability of Inter-Blockchain Communication (IBC) volume and close connections, ensuring a diverse range of tokens and consequently, increased liquidity. The interchain ecosystem fosters an environment where blockchains operate as interconnected blocks communicating via the IBC protocol. This setup allows developers to establish their unique chains with distinct functionalities within the larger Cosmos network.
Kaspa (KAS-USD)
Market cap: $3.48 billion
In 2021, Kaspa cryptocurrency emerged onto the scene, introducing the GHOSTDAG protocol and utilising blockDAG technology to facilitate swift confirmations and high block rates. Positioned by its community as a solution to the blockchain trilemma, Kaspa aims to achieve a harmonious balance between security, speed, and scalability.
Throughout 2023, Kaspa underwent significant transformations, notably transitioning to state-of-the-art ASIC miners. Furthermore, the project outlined plans for exchange listings and introduced innovative concepts such as the Kaspium mobile wallet and Wrapped Kaspa.
Looking ahead, Kaspa has ambitious initiatives in store, including the implementation of advanced smart contract functionalities and the introduction of the Rusy Kaspa Testnet 11 to the public. Additionally, the project aims to surpass ten blocks per second, signalling its commitment to continual growth and innovation.
Stellar (XLM-USD)
Market cap: $3.92 billion
Stellar (XL,-USD) stands as a decentralised, public blockchain offering developers a platform to craft financial experiences that resemble cash transactions more closely than traditional cryptocurrencies. Amidst the current bull run, it emerges as a promising altcoin candidate to diversify your investment portfolio, owing to its role in facilitating peer-to-peer connections within the global financial system.
At its core, Stellar aims to streamline the movement of money, prioritising efficiency and speed. Notably, the network boasts lower costs, faster transaction speeds, and greater energy efficiency compared to many other blockchain-based systems. Lumens serve as transaction mediators, ensuring the smooth operation of the network, while the decentralised nature of XLM holders holding the keys enhances transaction security.
Recent developments have further bolstered Stellar’s appeal, including the introduction of innovative features like Soroban and initiatives such as the Community Fund, which channels Lumens into impactful projects. Moreover, through initiatives like Stellar Aid Assist, the project showcases its altruistic side by providing over $2 million in aid to those in need.
Please note that the market capitalization data is sourced from CoinMarketCap as of March 6, 2024.
Strategies for Investing in Altcoins During the Next Bull Run
Implement strategies that prioritise rational decision-making over emotional impulses and develop a well-thought-out investment blueprint encompassing target entry and exit prices. It’s crucial to remain updated on market developments and news while also curbing excessive social media exposure, which often fosters greedy tendencies. Let’s explore altcoin investment strategies for the upcoming bull market.
Investing Strategy
Given the unpredictable and volatile nature of the crypto market, it’s crucial to resist the urge to dive into purchasing assets at the first sign of a surge, using all your savings. Take the time to carefully assess how much you’re comfortable investing in cryptocurrencies like Bitcoin, Ethereum, and altcoins.
When venturing into altcoin investments, it can be advantageous to explore industries with high growth potential and diversify your portfolio across them. For instance, allocate 30% to Real World Assets, 20% to AI, 10% to Layer-2s, and so forth. Additionally, consider implementing a rupee-cost averaging strategy to gradually build your position, thereby capitalising on any market downturns.
Risk Mitigation
Risk management is the crucial first step that every trader must consider and master when devising their investment strategies, yet it is often neglected until it becomes too late. Investors should effectively manage risk by determining the amount they can afford to risk on each investment and adhering to this limit. This can be achieved by implementing a stop-loss order to cap losses during unfavourable market conditions.
Adhere to Profit Objectives
One common investing mistake involves neglecting to recognize the right timing to capitalise on gains. This oversight is particularly pertinent in the realm of cryptocurrency, where market dynamics are greatly influenced by factors such as social media buzz, sudden surges, emotional reactions, and greed. As asset prices surge, it’s crucial to establish practical profit targets and adhere to them diligently. Adopting a disciplined approach to profit-taking can shield investors from unforeseen market reversals.
In instances where investors lack a clear exit strategy, implementing a scaling-out approach can be advantageous. This entails gradually divesting from the asset using rupee-cost averaging principles. For instance, selling 25% of the altcoin at designated price points, such as Price Point 1 and Price Point 2, can help ensure profits are realised while still allowing for potential upside benefits.
Consider Investing in These 5 Altcoins for the Anticipated Bull Run of 2024
Factors Fueling the Growth of Altcoins
- Market demand serves as the primary catalyst for the ascent of altcoins. Initially, altcoins are propelled by the demands of investors seeking assets with promising growth prospects. Various factors influence market demand for altcoins, including consumer sentiment, prevailing market trends, and investor confidence.
- Regulatory policies wield significant influence over the evolution and expansion of altcoins. Regulatory bodies and governments hold the authority to enact restrictions on cryptocurrency usage, thereby impacting its demand.
- Technology serves as a fundamental factor influencing the growth and advancement of altcoins. Altcoins with distinctive features or pioneering technology are prone to garnering greater popularity compared to others.
- Economic conditions represent another pivotal factor impacting the growth and progression of altcoins. During periods of economic uncertainty, investors tend to gravitate towards altcoins as a means of hedging against inflation or economic instability.
- Competition looms large within the cryptocurrency market, exerting a significant influence on the growth and evolution of altcoins. Altcoins that provide comparable features may encounter challenges in capturing market share.
Consider Investing in These 5 Altcoins for the Anticipated Bull Run of 2024
Making Decisions
Investing based on hype or fear of missing out (FOMO) is a risky decision in the cryptocurrency market. Unlike traditional markets, cryptocurrency transactions are transparently recorded on a public ledger, providing investors with ample information and tools to make informed decisions. Therefore, it’s essential to leverage available resources for thorough analysis rather than relying on speculative impulses.
There are several free tools available to aid investors in their research:
- Ai: This tool offers a comprehensive breakdown of transactions, portfolios, and other metrics for individual blockchains, Layer-2s, dApps, and DeFi protocols. It provides detailed data analysis to help investors assess various aspects of a project.
- Fi: Acting as an antivirus scanner for cryptocurrencies and smart contracts, Fi is designed to identify harmful or flawed smart contract codes and detect potential rug pulls. It serves as a safeguard against fraudulent activities within the crypto space.
- Arkham Intelligence: Arkham serves as a blockchain observer that visualises the relationships between wallets, enabling users to identify suspicious transfers or prevent Sybil attacks during airdrops. It provides valuable insights into transaction networks and potential risks.
- Crypto-fundraising.info: This tool tracks VC funding for new crypto projects, offering insights into the firms involved and the amount raised. It provides investors with valuable information about the financial backing and credibility of emerging projects.
Consider Investing in These 5 Altcoins for the Anticipated Bull Run of 2024
By utilising these tools, investors can conduct thorough research into a project’s fundamentals, market positioning, and team credentials. Additionally, investors can perform strengths, weaknesses, opportunities, and threats (SWOT) analysis to assess the viability and potential risks of a project. It’s essential to critically evaluate investment theses and remain open to challenging perspectives, rather than seeking confirmation bias.