2017 was a good year for the crypto industry. Currency prices were bullish, reaching all time highs and crypto businesses had a booming year. Over USD 7 Billion was raised during token sales and speculation was rife that the markets will be bullish for a long time. Then came 2018 and cryptomania was over. Most of the dormant cryptocurrencies lost more than 50% of their 2018 highs. Investors across the world panicked and in a state of frenzy, dumped their cryptocurrencies. The CEO of Bitmex, a leading cryptocurrency exchange, believes that this bear market will last for another year or two. Altcoins might be a viable alternative.
Altcoins are a great alternative in this Market
However, even with all this bear talk, there seem to be a new crop of investment firms that are advising clients on how they can take advantage of the market as it gets ready for the next bull cycle. These crypto investment firms are advising their clients that now is the best time to diversify their crypto holdings and invest in altcoins.
A good example of these investment firms is New Wave Capital. This company indicates that since the launch of their unique robo-adviser in July, they haven’t closed any client accounts. Instead, the clients who invested with them, are adding more money onto their holdings.
The platform is offering a unique investment strategy that invests clients’ funds across 15 altcoins. All a client needs to do is take part in a short survey and the platform’s unique algorithm will advise on how to spread your investment across a selected list of altcoins. The platform chooses the altcoins based on an algorithm that looks at your risk tolerance, market cap, trading volume and product completion.
Some of the altcoins that this firm invests in are: Ethereum, Stelar, Litecoin, Ethereum Classic, Zcash, OmiseGo, Ox and Numeraire. It then weighs the cryptocurrencies and allocates every client a portion of all the currencies.
Current Strategy Biased towards Bitcoin, Long-term Investors should think Altcoin
As we are still on a bear market,the algorithm still exhibits bias toward Bitcoin. However, the CEO of this investment firm is bullish about altcoins, especially the ones that most people have never heard of. He says that small cap coins generally have the greatest potential.
He also said that investors tend to move to coins that are considered to be safe during bear markets such as Bitcoin. However, altcoins present a unique investment opportunity during a bull run.
He concluded by saying that the services they offer are intended to provide room for long term thinking.”We are seeking for people who can hold on to their portfolio for the long term. At this market, it is prudent to invest in alt-coins with a long term mindset.”
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