The chart below shows us the total crypto market capitalization, or the total value of all crypto assets, excluding Bitcoin. In other words, the line shows the value of all altcoins combined over time. Over the course of 2 weeks, we have seen Ethereum, Solana, and Polkadot break all-time highs and explore previously unknown price ranges. If three of the biggest altcoins are setting new all-time highs, then history tells us that this could be the start of a 2021 alt season.
alternate season - the crypto term for a period in which altcoins outperform Bitcoin, presents a much wider range of investment opportunities than a specific Bitcoin rally. For many, a winning strategy is simply to go with the blockchain technology that they believe has the most potential. Making this decision requires a substantial amount of research and a deep understanding that extends beyond Bitcoin and Ethereum. If only there was a way to take advantage of the alt season without having to lock yourself away for weeks to research an ever-growing list of disruptive blockchain technologies. Well, the good news is that there is. It's called diversification, and in this article we'll see why it's not just a word used by Wall Street bankers.
What does the alternate season announce?
New crypto investors tend to buy Bitcoin because it is the least volatile and best known crypto asset on the market. For many, transferring money from Bitcoin to more volatile altcoins is scary. Therefore, it is important to take into account objective and verifiable data when deciding whether or not an alternate season really goes.
(Image credit: .) At first glance, it's clear that this chart follows some type of repeating pattern. We can see striking similarities between the two highlighted periods, namely 2014-2018 and 2018-present. The period 2014-2018 shows an accumulation phase (red line), followed by an alternate season (price increase in 2017). We can see from the chart above that a similar accumulation phase has occurred over the 2018-2021 period. Furthermore, we are currently at the same stage of the cryptocurrency price cycle as when the 2017 alt season began. If the pattern continues to follow the form established in 2014-18, that could mean this is just the start of another season. alternative.
Why is it difficult to choose a winner
In just 4 months, Solana's price is up 574%, while its rival Cardano is only up 52%. While investors who bought Solana before its epic price rally are undoubtedly delighted with its returns, they invariably should have bought without any real certainty that Solana would decisively outperform a close competitor like Cardano. In each alternate season, a small number of altcoins have set price growth records, while others see more moderate gains. The point is, even for seasoned analysts and market researchers, predicting which altcoin will outperform all others involves an element of luck.
(Image credit: .) The table above shows the top 10 crypto assets by market capitalization from 2015 to present. Crypto assets highlighted in blue represent newcomers to the Top10 compared to the previous year. It's remarkable how much this list has changed from year to year. This table clearly shows how difficult it is to accurately predict which crypto asset will succeed or which will become a fleeting coin. So how do you choose the winners? We don't have to.
Diversification is easier than you think
In the world of crypto assets, diversifying simply means investing in several different crypto assets. By doing this, you are spreading your risk across multiple investments with exposure to various sectors rather than putting everything you own into a single crypto asset. The idea is that by exposing your portfolio to multiple crypto assets, you will benefit from uncorrelated returns. Of course, you won't get the same returns as if you went all-out for the best-performing crypto asset, but on the other hand, you won't risk having all your eggs in one basket. Instead, through diversification, you spread the risk and enjoy a much less volatile ride down the road. Building a diverse cryptocurrency portfolio always requires investors to do their own in-depth research, decide which crypto assets are best to maintain exposure to certain market sectors, and constantly replenish their portfolio to stay in step with the market. the cryptocurrency market. It is clearly not a simple task nor a time efficient task. Revix, a Cape Town-based crypto investment platform, was founded to solve this problem. In addition to making it easy and secure to buy individual crypto assets, Revix's fame lies in its Crypto Bundle offerings. In the same way that you would buy from the JSE Top40, the Revix packages allow you to invest in a group of cryptocurrencies without any hassle. Revix's allows users to invest in 3 different theme packages: the
Top 10 packages it is like the JSE Top 40 or S&P 500 for cryptocurrencies and offers equal weight exposure to the top 10 cryptocurrencies that account for over 75% of the cryptocurrency market. This package includes all the cryptocurrencies mentioned in this article and has significantly outperformed Bitcoin in the last 12 months. the
Smart contract package offers equally weighted exposure to top 5 smart contract-focused cryptocurrencies like Ethereum, Solana, and Polkadot, which allow developers to build apps on top of their blockchains, just as Apple builds apps on top of its blockchains on top of its system. operational. the
Payment package offers equally weighted exposure to the top 5 payment-driven cryptocurrencies looking to make payments cheaper, faster, and more global. These cryptos include Bitcoin, Ripple, Stellar, and Litecoin. Revix packages have outperformed a Bitcoin investment only over a period of one, three, and five years. Additionally, if a new crypto asset manages to meet the criteria Revix packages are based on, Revix will automatically re-weight the package, keeping your portfolio up-to-date with the rapidly evolving world of cryptocurrencies.
(Image credit: .) This chart shows the performance of Revix packages over the past year. Smart contract bundle (+821%), Top10 bundle (+712%), and payment bundle (+333%) outperformed Bitcoin (+317%) over the past year without investor having to investigate or rely on of guesses. . And it's even better! Revix packages are based on a direct index model, which means that, unlike an ETF, Revix buys and holds the underlying assets on your behalf. It was also the first crypto platform in South Africa to register and pass a third-party audit of these assets, conducted by Mazars. So not only do you get diverse exposure to alt season with just one click, but you also get the assurance that an audited company is looking after your assets.
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top 10 package, Smart contract package or the Payment package with ZAR or GBP. Revix is backed by JSE-listed Sabvest and offers access to all cryptocurrencies and packages mentioned in this article. For more information, visit www.revix.com.