Against the backdrop of high uncertainty in the cryptocurrency market, it is worth thinking about purchasing tokens, the rate of which has a low correlation with market trends and at the same time has serious potential growth factors.
What to buy?
- Dogecoin (DOGE) – 40%;
- Toncoin (TON) – 30%;
- Ripple (XRP) – 30%;
Foundations
Dogecoin has been successfully parasitizing on Elon Musk’s brand for more than a year, and so far there are no serious reasons to expect this trend to stop. The billionaire’s tweets regularly provoke bursts of activity in the crypto market, with DOGE being the main beneficiary of this paradox.
On a positive note, Twitter was acquired by Elon Musk at the end of last year. At the same time, he repeatedly hinted at the potential integration of his “favorite cryptocurrency” into the social network. But, of course, these expectations are only at the level of rumors.
Also, we (unlike Elon Musk) did not forget about the DOGE-funded launch of the Doge-1 satellite to the moon. But there is no news about the exact launch date, as well as about the fate of the satellite itself. If this informational occasion is revived, it will cause a powerful surge of activity in the market, and Dogecoin will go to the moon, literally and figuratively.
The second promising token out of the market is Toncoin.
The practical application of NFT in the ecosystem of The Open Network can become the main growth driver. Telegram founder Pavel Durov has already implemented the sale of nicknames for his future Web3 platform and his own virtual phone numbers in the form of non-fungible tokens.
In early December last year, he announced plans to further develop decentralized tools for working with cryptocurrencies. And taking into account the fact that 2023 may become the year of development of applied NFT solutions, it is quite possible to expect the launch of new interesting crypto projects for TON, which will increase investor interest in the native token of this ecosystem.
The last “dark horse” on our list is the Ripple token.
Positive expectations are due to the fact that the protracted conflict between the US Securities and Exchange Commission (SEC) and Ripple Labs may be resolved as early as 2023. If the decision is in favor of the company, on a wave of euphoria, fans of the project will be able to use all the potential accumulated during the trial and drive up the price of the token to new historical highs.
As a reminder, unlike the rest of the popular cryptocurrencies, XRP failed to get its share of attention in 2021, when the tokens massively updated their price records.
Risks
The crypto market is in a precarious position today, and may again lose a significant part of capitalization due to the potential emergence of new episodes in the bankruptcy of the FTX crypto exchange or due to possible arrests and blocking of resources, the risk of which has increased after the story of the arrest of the Bitzlato service administrator. All this negatively affects investors’ expectations, however, the selected projects are least dependent on the general trend, therefore, in this aspect, the risks are below the market average.
Of the disadvantages of such a portfolio, one should take into account its unpredictability and almost no predictability. So, for example, the growth of “meme” tokens occurs suddenly, and it is also unpredictably replaced by a fall. And the fate of XRP largely depends on the outcome of the conflict between Ripple and the SEC, and in a negative scenario, at best, the token will lose up to half of its already undervalued value at the moment.
Only Toncoin seems relatively stable in the portfolio, which should continue to grow regardless of the general market situation. But a strong binding of a token to a politically vulnerable project can play against it in the event of scandals due to a new wave of anonymization of the messenger.
In any case, all the tokens listed in the portfolio are subject to frequent “Pump and Dump” attacks, so you need to take this feature into account and use it to find successful entry and exit points from trading positions.
