There is no doubt that we appear to be in the throes of the next crypto bull run. Bitcoin is near all time highs and the market appears poised to break some really exciting levels. Now, this is not only good for Bitcoin, it is a godsend for the old coin market for those that have followed the crypto markets for some time. They’ll note there’s usually a pivot to old coins once Bitcoin has rallied. However, given how more sophisticated the markets have become, it’s unlikely that this rising tide will lift all boats.
Only some old coins are likely to capture those gains you’re striving for. This then begs a very important question. Which ones? Well, that’s exactly what I’m going to cover in this article.
I’ll be taking you through five of my top Cypto ALT coin picks for 2021. Picks that are not only well diversified across the tech market cap and use cases, but old coins that really could explode next year in 2022. So keep reading.
Before I get cracking, got to do a bit of legal yapping, don’t let my affable and charming demeanour fool you. I am no financial adviser, hence I’m not qualified to give you financial or investment advice and my opinions and choices can change at the click of a finger.
So please only view this as educational, and I must implore you to do your own research. Secondly, if this is the first time that I’m gracing your screens, welcome to my humble abode, my name is Kaz, your crypto guy in the U.K. Over here at Cryptovimto, I cover everything. Well, crypto, of course, news reviews, overviews and other hot topics. If any of that tickles your fancy, then hit that share button.
You also don’t want to forget following us on our social media platforms at the top of the website. Following us ensures that you’re plugged into the Crypto Universe.
Oh, one last thing. I value your time. So I’ve placed some bullet points at the bottom of the article. They are there for your convenience, so feel free to jump around if you’re pressed for time already. Enough beating around the block chain. Let’s get into this. I think it’s worthwhile to give you a quick overview of how I’ve chosen these picks. It’s an important insight into my thinking of broader portfolio diversification and allocation. If you want to jump straight into the picks, use the bullet points below.
Now, the way I like to approach coin picks is the same way I approach my portfolio. It’s all about diversification, diversification to underlying use cases, market cap and sector. This is important because oftentimes, despite how good a project is on paper, the sector within which it operates may not be as hot. However, if you’ve chosen projects in different sectors, you are diversifying your sector risk. Something else that I try to diversify is the market cap of the coins in the list.
This is important, as you’ll note, that the chances of making a 50 X return on a token or ALT coin are much more likely on a low cap gem than they are on a promising yet high market cap coin.
Why? Well, maths. But of course, low cap coins are inherently more risky and volatile.
The risk of the token falling through the floor is higher on smaller projects than it is on higher cap and more established ones. Okay, so that’s a bit of context. I should also point out that these are presented below in no particular order, so don’t read too much into that. But whatever you do, please do try and pay attention to why I’ve chosen each of these coins anyway.
First pick, that would be Monero. Now, for some of you who’ve been following this blog, you’ll have seen me cover this privacy coin a number of times. That’s because apart from having the most cutting edge cryptography protocols on the market, it also stands for something much more fundamental financial freedom. Truly anonymous peer to peer digital cash, Satoshi Vision. Now, it’s a pretty well established crypto that’s been around for about six years now. However, it’s been in the news quite a lot recently, and that’s because of who has it in their sights.
That’s right. The powers that be are not too happy about pure financial freedom after all. I’m talking prosecutors, regulators and other large enforcement agencies with three letter acronyms, you know the ones, it’s therefore pretty clear that Monero has some damn powerful enemies. So you may be wondering how on earth I can put it on the list. Well, one man’s meat is another man’s poison. I take the view that this intense focus by these agencies shows that they view Monero privacy enhancing technology as a threat, a threat that they struggle to control and dominate.
This can only mean that it’s working as intended. And despite having so much thrown at it by all of these players, they’ve still not been able to crack the encryption and anonymized users. Yes, Safer Trace has developed a patent that helps to track transactions, but this is purely a probabilistic approach. It uses well-known techniques in transaction clustering to hone in on likely address flows. But it’s far from cracking the algorithm. But apart from this, there are a number of other reasons as to why I’m so bullish on Monero.
Firstly, as mentioned, the privacy tech is unrivalled. I can’t go into the nitty gritty here as it’s a rabbit hole that we won’t easily climb out of. However, feel free to check out the other articles on Monero if you want to explore it more. Secondly, this tech is constantly evolving as the developers work to harden the protocol and secure its privacy for it’s users and devs.
And speaking of those devs, they are some of the most hardcore cypher punks in the crypto space, a broader collective of idealistic individuals, all driven by their goal of preserving financial freedom. I should also point out that all funding for R&D on the Monero network is coming from the community. No outside interests. Another reason why I’m more bullish on Monero than other privacy coin’s is because it has the highest liquidity among them. This is despite the fact that exchanges have been put under pressure on privacy by default coins.
The fact of the matter is that Monero is still a damn popular cryptocurrency. There will always be a market for it and an exchange willing to service it. And even if the centralized exchanges make it difficult to use exchange XMA, decentralized alternatives will eventually fill the breach. That’s because one of the most promising community funded R&D programs has been worked on right now is XMA, BTC Atomic Swaps. This will allow users to easily exchange their Monero for Bitcoin and vice versa.
Cross chain, a seamless bridge from where the all seeing eye reigns to where it is blind. I should also note that Monero is actually one of the more decentralized proof of work crypto currencies. This is because of a number of changes that were made to its mining algorithm. As you’ll no doubt know, centralization is one of the biggest risks to a distributed system. For example, there are a number of fears around the centralization of bitcoins mining hash rate in China.
This is something that I covered in a previous video, which I’ve linked to below. Should you want more info? Finally, I’m bullish on Monero because of the state of the world, if there’s one theme that’s emerged this year is that privacy is under assault from anti encryption bills to mandatory exchange reporting requirements, from the elimination of cash to the launch of central bank digital currencies. As more people realize that these freedoms are being rug pulled from under them, they will gravitate to solutions that preserve said freedoms.
So that was Monero onto the next pick and that would be Algorand.
Now we all know that there’s a hell of a lot of hype around smart contract block chains. Heck, you need look no further than the excitement around Ethereum 2.0 is one of the reasons that it makes up such a big chunk of my portfolio. However, one size does not fit all and it won’t be a matter of winner takes all. That’s why it could be wise to diversify in your allocation to other developer friendly block chains. There are a lot of promising networks out there, but Algorand is one of the more intriguing, which has been on my radar for quite some time.
Let’s start with a bit of an overview and is a block chain that has actively set out to solve the pretty well known block chain trilemma. More specifically, they want to develop a block chain that is scalable, secure and decentralized. How they plan to achieve this is down to their highly performant consensus mechanism, it’s called pure proof of stake. The main benefit of this is that our technology finalises blocks in seconds and provides immediate transaction finality while preventing folks. I can’t go into all of the other end tech right here, but if you want all the juicy details, then be sure to sign up to our email list for our weekly newsletter.
1️⃣ Monero 1️⃣ Monero is a privacy coin that I have covered quite a few times. It has somem of the most advanced tech in the space when it comes to ring signatures, mining algorithms and transaction capability. There are a number of agencies that have been trying to crack the algorithm for a few years but all to no avail. However, the fact that they are trying to do so shows that they are concerned about the project and view it as a threat There are a number of other reasons as to why I am bullish. Monero uses a mining algorithm that makes it more decentralised than Bitcoin. Also, it has the most liquidity out of the privacy coins. And, even if there is a situation in which centralised exchanges delist Monero, you can trade in a decentralized manner through the use of atomic swaps
2️⃣ Algorand 2️⃣ Algorand could be an attractive play if you are looking to diversify your “smart contract” blockchain exposure. Algorand is a blockchain that has actively set to solve the pretty well known “blockchain trilemma” How they plan to achieve this is down to their highly performant consensus mechanism. It is called ‘Pure Proof of Stake’. The main benefit of this is that Algorand’s technology finalizes blocks in seconds. There is also strong VC funding that could help to increase use case on the blockchain. You also cannot forget about the impact of USDC demand (it was integrated with Algorand).
3️⃣ Theta 3️⃣ Theta is a project that is looking to completely transform the way we think about streaming and online content delivery. They want to decentralise and democratize it. This type of scale is all possible thanks to some pretty mind-blowing streaming and blockchain technology. You also have to consider just how hot streaming is currently and most of it is in the hands of centralised entities. Theta has a strong team and strong advisors. All of the token supply is already on the market and 55% of it is being staked. When you stake your THETA, you also earn another token called TFUEL. These are burned every time that there is a transaction which of course reduces the available supply.
4️⃣ Injective Protocol 4️⃣ The Injective Protocol is a decentralised derivative exchange that is built on Cosmos It will allow users to trade spot, swaps and futures in a completely permission-less way. They will also be able to structure their own derivatives on the platform and create a market for it It is implemented as a Cosmos SDK module and is built with Ethermint. This basically means that it has one major advantage over most of the Etheruem based Dex’s on the market This is because it is a layer 2 cosmos zone and hence does not have to put up with the congestion that other Ethereum based Dex’s do.
5️⃣ BarnBridge 5️⃣ BarnBridge is a protocol for the pooling and tokenization of risk. It works by pooling funds on the platform and then allocating these funds to different Defi protocols This therefore means that defi investors are able to invest in different risk tranches based on their yield and risk tolerance. This is called their ‘Smart Yield’ product and it was the first one that they launched They are also working on a similar product called ‘Smart Alpha’.