As a general rule of thumb, the cryptocurrency circle has experienced whirlwind changes since 2017. Rewind to that year, Bitcoin (BTC), often termed the OG of all cryptocurrency, experienced an astounding 20x increase, reaching its peak in December. Its steadfast resilience, decentralization, and consistent security have proven to be shining characteristics, attracting traditional investors towards a 5-10% allocation. On the other extreme, Bitcoin maximalists argue for a full-fledged 100% investor portfolio.
In tandem with Bitcoin’s upward trajectory, Litecoin (LTC) mirrored a similar growth, pumping around 50 times from a modest $4 per token to over $220. For Litecoin, the primary objective is to be a secure, decentralised network, with an enhanced capability to manage high transaction workloads, while Bitcoin is seen as the reserve asset. The recent drop in Litecoin’s value could spell opportunity to buy the dip, forecasting a probable bull run in the near future for the cryptocurrency market.
It’s hard to overlook the phenomenal 30,000% jump witnessed by XRP back in 2017. However, Ripple Labs, XRP’s creator, has since faced legal battles with the Securities and Exchange Commission (SEC), causing significant fluctuations in the token’s value. Despite these adversities, the judge’s recent partial victory for Ripple has sparked renewed positivity, with potential for resurgence above the $1.0 mark.
The world’s first meme coin, Dogecoin (DOGE), saw an almost 40x leap back in 2017. Although sporadic gains followed by large pullbacks have marked its history, its potential to reach and surpass its all-time highs could be a tempting portfolio addition.
Around the same time, Ether (ETH) surged by a mind-boggling 13,500%. This token, fuelling the groundbreaking Ethereum network, remains the dominant player in the Decentralized Finance (DeFi) space. Despite high transaction costs and occasional speed lapses, Ethereum’s potential to revolutionize daily life and finance makes it an attraction for investors’ portfolios.
However, the potential of these well-established tokens to replicate their 2017 performances is uncertain. For those seeking larger risk-reward ratios, crypto presales might be the way ahead. Herein, investors get an early-bird shot at purchasing tokens of budding crypto projects, commonly at lower prices. Identifying promising projects can turn these presale investments into lucrative ventures.
As the disclaimer goes with all high-stake asset classes, investor caution is paramount. This volatile landscape, full of rewards and risks, oscillates rapidly. The key lies in exercising prudence while keeping the vision forward.
Source: Cryptonews
