Which Cryptos Should You Have Invested in on NYE For Max Gains?
From the start of 2020, crypto prices made significant recoveries. While analysts were reluctant to call an altcoin season, some assets marked impressive gains.
Altcoins Remain Risker, Promise Higher Short-Term Gains
Altcoins remain riskier and much more volatile in comparison to Bitcoin (BTC). While the leading crypto coin bounced off lows around $7,100 in January to above $10,000, some altcoins made even bigger gains.
If a trader decided to allocate $1,000 into altcoins on January 1, 2020, the average gains of top 20 coins were 43%. This is not an impressive gain for the world of crypto, especially having to wait more than a month. But it is still a positive move, despite taking into account the recent price slump.
But investing in four specific assets would have led to more significant gains. The biggest gainers in the crypto space were Bitcoin SV (BSV) with 274% gains; Tezos (XTZ) with 222%, Chainlink (LINK) with 234%, and Dash (DASH), which is up 254%.
The average gain of these four assets is close to 246%, significantly higher in comparison to the overall top 20 of coins. However, there is a warning – those assets have been viewed with some skepticism, especially in the case of BSV.
Still, splitting $250 for each coin would have yielded roughly $2,460. Of course, the exact sum is shifting, especially given that BSV was extremely volatile in the past few days, and actually sank from highs above $360. Also, XTZ has stepped back from its highs, undermining its YTD progress.
Top 20 Crypto Coins Almost Doubled On Average
Among the top 20 of coins, the gains averaged 185%, and almost any asset bounced off its lows. However, the exact gains depend on catching the exact moment of price lows, and selling off before a deeper correction. Right now, altcoins have accrued significant gains, but a 60% correction is also quite possible.
Altcoins may achieve significantly higher gains in comparison to BTC. But those assets often see their market liquidity diminish within days. Locking in gains from altcoins also means selling before the cycle has ended and corrections set in.
Choosing a selection of older, more established altcoins, brings lower returns. Taking Ethereum (ETH), Litecoin (LTC), Binance Coin (BNB), and Monero (XMR) will bring average returns of 177%, with ETH alone achieving 192% gains.
In the first six weeks of 2020, separate altcoin rallies managed to bring higher gains from lows to highs, though timing the market can never be exact. However, one of the strongest gainers turned out to be coins that face a halving this year, including BCH, BSV, ETC, and DASH. Altcoin selection is a matter of personal preferences, with no clear way to predict which asset would regain its appeal after the prolonged bear market.
What do you think of the altcoin gains in 2020? Share your thoughts in the comments section below!
Images via Shutterstock
How to get the Bovada Bitcoin Bonus in 2021 worth up to a maximum total of $3,750
In this article we will explain how to get the Bovada Bitcoin bonus - it's…
What is the Best Bitcoin Wallet for Sports Betting?
Welcome to our aticle which will help you find the answer to the question of;…
Traders Forecast Bitcoin Will See a “Cool-down Period” as Rally Overheats
[ad_1] Bitcoin has been caught within the throes of a consolidation phase ever since its…
Digital Euro, CBDCs and Bitcoin – Bitcoin Magazine
Listen To The Episode: This episode of Bitcoin Magazine’s Fed Watch is a cosmic ride…
Analysts Expect Move to $20,000 High as Bitcoin Holds Key Supports
[ad_1] Bitcoin underwent a rapid correction last evening after the coin pressed as high as…
Bitcoin Entrepreneur Malcolm CasSelle Dies At 50 – Bitcoin Magazine
[ad_1] Malcolm CaSelle, a pioneering blockchain technology and Bitcoin entrepreneur, has died at age 50,…