From Bitcoin to DeFi Tokens. What cryptocurrencies should an investor choose?

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In the past eight months, some digital assets have brought their holders hundreds of percent returns. Experts told what prospects the market has in the future, what they are investing in, and why?

Since January 2020, bitcoin (BTC) has risen in price by 55%, the Binance exchange token (BNB) - by 75%, and the altcoin Tron (TRX) - by 120%. Of the leading digital assets in terms of capitalization, Ethereum (ETH) added to the value more than others. Over the past eight months, its rate has increased by more than 250% and updated the maximum of $460, set in July 2018. The reason for this growth was the expectations of the transition of the ETH blockchain to the second version. This should increase the speed of transactions, reduce commissions, and provide an opportunity for players to earn on staking - a cryptanalogue of a deposit with interest.

The most impressive results were shown by the decentralized finance tokens. Most of the assets related to this sector appeared only a few months ago, but have already managed to rise in price by hundreds and thousands of percent. A good example is the yEarn Finance platform token. It appeared in July and cost $32 at that time, now it is $34,000. This is about 100,000% growth in a month and a half. Other examples of multiple rate increases since January:

Chainlink (LINK) - from $1.8 to $16, almost 800%;

Band Protocol (BAND) - from $ 0.22 to $14, more than 6300%.

One of the drivers of growth in the value of cryptocurrencies this year was the crisis caused by the pandemic. The first crypto billionaires, the Winklevoss brothers, are confident that this will lead to a rise in the price of BTC to $500,000. One of the factors contributing to this is the uncontrolled emission of money, which states, especially the United States, go to combat the consequences of the coronavirus. These measures lead to the depreciation of national currencies, which, in the opinion of market players, increases the attractiveness of digital assets due to the limited emission of them. The crisis is not over and, perhaps, cryptocurrencies still have the potential for growth in value.

Posted Using LeoFinance



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