Top 3 Altcoin Picks This Summer
Quite recently Bitcoin’s price broke through the $30k support level, leaving many traders and investors in a state of fear.
But the fear was short-lived as Bitcoin bounced back to $32k by the next day.
Since Bitcoin is the king of the crypto space, whatever happens to it tends to be replicated in altcoins also. Now that traders have some reprieve from falling prices, it is important to start planning for the weeks and months ahead.
The purpose of this post is to bring you up to speed with our top 3 altcoin picks that will earn you impressive profits in the days to come.
Before proceeding, I would like to issue a disclaimer stating that the contents of this post aren’t intended as investment advice. Instead, the intention is to bring to your notice some altcoins that are doing fine in terms of their technicals as well as fundamentals. We would like to add that it is your ultimate responsibility to carry out your own research and due diligence before buying any of the coins mentioned in this post.
High Risk High Rewards Altcoins?
It is worth stating that the 3 selected tokens are not guaranteed to give you the best returns, nor do they fall into the category of “high risk high rewards” altcoins.
Rather, they were chosen because of their positive outlook based on their technicals and fundamentals.
These altcoins could rightly be referred to as moderate risk moderate reward crypto assets. However, they have good prospects of earning 2x to 3x the profit that could be generated by BTC in this summer.
The second largest cryptocurrency by market cap, Ethereum is a well established cryptocurrency with great fundamentals. Trading at $2,067 at the time of writing, a 54% drop from its all time high of $4,379.53 in mid May.
Bitcoin’s plunge from its all time high of $65k obviously affected Ethereum and other altcoins. However, a number of fundamental factors are working in favor of the crypto market’s second largest cryptocurrency.
The much anticipated London hard fork with EIP-1559 upgrade is expected to launch on August 4 (https://www.coindesk.com/ethereum-london-fork-launch-date-august).
This upgrade leads to the introduction of Ethereum 2.0 with the transition from PoW to PoS consensus. Also, the new transaction fee mechanism introduces a gas fee burn concept that enthusiasts believe would reduce the circulating supply of ETH. Even if this upgrade doesn’t turn out as anticipated, there’s still an opportunity to revoke it.
If you also consider the increased activities around the DeFi ecosystem and increased NFTs sales volume, there is a probability of upsurge in the demand for ETH.
The crypto market was engulfed with fear, when on July 20, Bitcoin broke through the $30k psychological support barrier. This fear quickly spread around the market with many traders and investors expecting the second wave of a bearish crypto market.
But Bitcoin rebounded the next day with many attributing the reversal to Elon Musk, Jack Dorsey and Cathie Wood’s Bitcoin showdown.
Ethereum quickly rebounded with the second most valuable crypto asset recording an 18% gain the next day.
Ethereum however, needs to steer clear of sub-$2,000 levels in order to maintain a solid support while it climbs towards $2,500 and higher.
2. OMG Network
For those of you not familiar with OMG Network, formerly known as OmiseGo, it is an Ethereum-based decentralized exchange that enables users to transfer ETH and ERC-20 tokens across blockchain networks.
On OMG Network users are able to access services that allow for value transfer between payment processors, financial institutions and individuals.
As a layer 2 application running on the Ethereum blockchain, OMG Network offers low cost and high speed transactions for ethereum-based transactions.
This is especially important if you consider the growing amount of DeFi protocols and applications that are being deployed daily on Ethereum.
By channeling transactions through OMG Network, transactions are brought as low as one-third of the average cost of using Ethereum.
From the above chart, we’re seeing a pattern of expanding channels featuring higher highs and higher lows. As the crypto market trends further, it might result in the expansion going higher and higher while traders continue to reap profits.
The price action of OMG Network reveals a pattern that could culminate into a breakout and higher than average profits.
Compound is an Ethereum-based lending platform that enables users to earn interests on their funds deposited in any of the Compound-supported pools.
Users can lend and borrow several tokens including Basic Attention Token (BAT), Wrapped BTC (WBTC) and 0x (ZRX).
Its governance token, COMP, confers such privileges on delegates and token holders as the right to join debates, propose and vote.
Lenders on the Compound platform have been known to earn APY (annual interest) as high as 25%.
One of Compound’s goals is to assist crypto asset holders in putting their idle funds to work, instead of letting these funds sit in crypto exchanges. To this end, a number of innovative products and services have been offered by Compound, with Compound Treasury Account being the most recent ( https://compound.finance/treasury ).
On the Compound Treasury Account, users are able to earn up to 4% APR on Savings accounts, High-yield checking accounts among others.
It is a product that converts your US Dollar to USDC, while supplying the digital dollar stablecoin to earn secure, high-yield interests.
This is a very attractive offer to both institutional and retail investors because the yield is many times higher than what traditional banks offer.
From the Compound price chart above, we see an impressive rebound from the recent price drop. With a new higher high and higher low pattern already taking shape. This sort of price action tends to favor short term traders who are in the market to make a quick buck. But this doesn’t eliminate the fact COMP is a crypto asset that would earn you 2x to 3x Bitcoin returns.
It is important that you carry out your own research before buying into any of our top 3 altcoins picks.
These crypto are not necessarily the best performing cryptocurrencies in the market but rather they exhibit impressive technicals and fundamentals.
These are our top 3 altcoins picks for this summer — they are moderate risk assets with moderate rewards that can earn you up to 2x to 3x the returns on Bitcoin.