If an altcoin is trading at extremely low levels, it's best to stay away from it, since trading volumes are a direct representation of the market sentiment and investor confidence in the potential of the coin.

Altcoins or digital tokens other than market leaders Bitcoin and ethereum are in rage these days, as investors seek to diversify their cryptocurrency allocations and venture into new waters. And while this might be a fleeting, and almost touch-and-go phase the world witnesses, theres no denying that there is a certain evergreen-ish quality about some things, be it stock fundamentals, books, movies, or movies more likely and importantly, music.

Old Hindi melodies, just like timeless investment advice, weather the test of time and relevance very successfully. And when it comes to penning down these heartfelt songs, from Tere Bina Zindagi se Shikwa nahi to Musafir hu yaaron to Satrangi re, it's hard to dismiss the classical significance of Gulzar and his words, which, almost compulsorily form a part of almost all our nostalgic and memorable family evenings, reunions, intimate gatherings and more.

Somehow, his words never seem to lose pertinence and expression, even after 87 years of age, a landmark he celebrated just yesterday. But how does one master the art of effortlessly merging the new and old, the traditional and modern, something as dynamic and nascent as the cryptocurrency market and something as profound as this legends lyrics?

His songs, over the years, have held many, many life lessons, and rewinding my Gulzar playlist, I could not help but look out for such gems to properly identify rewarding altcoins in his never-ending list of tracks. Take a look :

Jinke sar ho research ki chaanv, portfolio main achche altcoins honge

Theres hardly anyone who hasn't grooved to this iconic song and re-enacted SRKs amazing moves atop the train, making its way amidst the rainy mountains. While this song might make you break into impromptu jigs and rightly so, that is certainly not advisable while choosing the altcoins for your portfolio.

For this, you can glance over the whitepaper of the currency. As Edul Patel, C0-founder and CEO, Mudrex, explains, whitepapers provide key information such as practical use cases, scalability, future roadmap, community engagement and growth prospects.

Look out for launch dates and steer clear of altcoins which are clearly riding on the back of a bullish cycle and do not have any fundamentals backing them once the run ends and the hype dies down.

Thoda Hai Thode Ki Zaroorat Hai, portfolio main zyada risks lene ki kya zaroorat hai?

Kishore Kumar serenades this eternally soulful song to perhaps explain the many shortcomings of greed, which is generally followed by an unbalanced appetite for high risks. Agreed, many altcoins have been booming, recording good growth figures over the last week, like Solana (82.42 percent), Polkadot (26.97 percent), Cardano (27.63 percent), and more. But, why choose erratic growth spurts over consistent progress?

Just like you balance your asset allocation between risky and stable investments, make sure the altcoins in your portfolio do not exceed a certain threshold, lest the novelty and extreme volatility of the coin might adversely affect your returns. Again, steer away from altcoins not available on regulated exchanges.

Per Anant Deshpande, Co-founder at FinBox, credit underwriting expert, and crypto enthusiast, Invest only your surplus, since it's a frenzied speculative market, Investors must not put all their hard-earned money in these super-risky asset classes. Prefer going mainstream within the alternative, as well.

This also means sticking to your basics, like preferring altcoins with a larger investor base and market capitalisation, among others. One way to go about it is to set parameters for your altcoin basket, like choosing from amongst the top 30 altcoins only, or restricting your investments to coins with a minimum market capitalisation worth 5 million dollars, etc.

As Patel further elaborates, An Altcoin having a market cap of $50 million, might not grow 10x as fast as an Altcoin with a $2 million market cap. So, for investors who would want higher returns might look at coins with a lower market cap, but within some defined limits.

Markets are, indeed, as volatile and eruptive as Gulzar Sahab describes Ishq to be. And in a space where fortunes are built and demolished overnight, one needs to be especially careful of tracking the daily activities of these altcoins. If the 24-hour trading volume is sustainable, and remains at 50 percent of its market capitalisation, along with traded volumes stay buoyant at 10 percent, it indicates that the coin is liquid, allowing you easy sell-offs in case of a crash.

If an altcoin is trading at extremely low levels, it's best to stay away from it, since trading volumes are a direct representation of the market sentiment and investor confidence in the potential of the coin.

See the original post here:
Selecting the best Altcoins, the Gulzar way! - Moneycontrol.com

Popular cryptocurrency analyst and trader Michal van de Poppe says he is currently watching five altcoins that can potentially surge in the coming weeks.

First on Van de Poppes list is blockchain indexing protocol The Graph (GRT) which he says is poised to end its downtrend and possibly revisit its all-time high against Bitcoin at 0.000061 BTC, worth $2.82 at time of writing.

I think that given the fact that were changing the entire cycle towards a bullish one, the chances of it running towards [0.000035 BTC or $1.62] or maybe even the all-time high are significant.

GRT is trading at 0.00001864 BTC ($0.86) at the time of writing, according to CoinGecko.

The token of Ethereum-compatible network Skale Network (SKL) is the second altcoin on Van de Poppes watchlist. The crypto analyst and trader says that on the SKL/BTC chart, the token must take out its immediate resistance of 0.0000076 BTC, worth $0.35, to ignite a strong rally.

If it breaks out of here, youre going to look at a run towards the highs around [0.0000145 BTC or $0.67]. And probably were going to make new highs overall, meaning that Skale is going to be one of those big runners.

The token of crypto debit card issuer Swipe (SXP) is the third altcoin Van de Poppe is watching. According to the crypto analyst, he doesnt expect SXP to immediately take out its resistance at $3.64.

We are facing resistance with Swipe, so breaking through that is not expected to be happening. Where do we want to take the entry? This is the first real entry point that you are looking at ($2.59) or when it flips here ($3.64 resistance into support).

Scalability-focused blockchain Zilliqa (ZIL) is the fourth altcoin on Van de Poppes radar. The crypto trader says the ZIL/BTC is ready for a big run after finding support at 0.000002 BTC or $0.09.

If we are going to get ourselves a new high, the chance of it going towards [0.000007 BTC or $0.32] or at least above a [0.00001 BTC or $0.46] are just quite normal to be expecting.

Van de Poppe ends the list with the token of layer-2 scaling platform Celer Network (CELR). According to the crypto trader, the CELR/BTC pair looks ripe for a rally after retesting crucial support at 0.0000007 BTC ($0.03).

The crypto strategist says that the targets for the pairs potential surge are 0.0000029 BTC or $0.13, 0.0000046 BTC ($0.21) and 0.0000063 BTC ($0.29).

I

Featured Image: Shutterstock/Corona Borealis Studio/Dario Lo Presti

See the article here:
Here Are the Top 5 Altcoins To Watch Right Now, According to Crypto Analyst Michal van de Poppe - The Daily Hodl

Solana [SOL], at press time, was up by 75% over the week. This was thanks to rising NFT and DeFi usage on the high-volume blockchain network. After recently recording its ATH of $79.57; the 10th largest token was trading just above the $72 price level, after a hike of 5% in 24 hours.

As previously highlighted, different analysts within the crypto-community have shared their optimism for Solana in the past. That said, heres an interesting take on this trending beast of an altcoin.

Crypto-analyst and investor Daniel Cheung, for instance, has been bullish on this network and its ecosystem, both in the short and the long term. Investors and traders should pay attention, he advised.

Making its way into CoinMarketCaps top-10, Solana has remained impervious to the downside price action recorded by most cryptocurrencies on the list. Ergo, it makes sense to explore what analysts think is supporting such growth.

In a series of tweets, Cheung highlighted Solanaspotential for another rally. Such a rally would push its price 4 times up from its current value, he asserted.

Consider this Solanas TVL (Total Value Locked) recently recorded a new all-time high of $1.93 billion, on the back of its price action.

While TVL isnt a perfect measurement of adoption, it is a good proxy because it does show how much value people are entrusting to smart contracts, he added in a tweet.

Zooming out a bit, the analyst went on to project a path that might help SOL go to the moon. He predicted,

On a base case scenario where I believe TVL could get to 4 billion and you apply a 15x to 20x TVL multiple, $SOL could get to a 60B to 80B circulating market cap. That would be 4x from here. Thinking the big picture is how you get rich in investing.

In addition to this, its interesting to note that while SOL rose, other ecosystems have been on a decline since. These include the likes of Binance Smart Chain. What do these findings imply then?

Well, according to another analyst, SOL will represent a liquidity black hole for the altcoin market over the coming days/weeks.

Solana, no doubt, has recorded a massive surge recently and might continue to do so. High volumes and sustained buying pressure will be key to pushing Solana north over the coming sessions.

Its no wonder then why some individuals are getting on the express train to create generational wealth. Consider the crypto-influencer The Crypto Monk, for instance. A recent tweet said,

See more here:
Heres what Solanas liquidity black hole means for the altcoin market - AMBCrypto News

The last couple of days have been surprisingly strong for altcoins like Audius and Solana (209%). In fact, despite major cryptos like Bitcoin and Ethereum doing well, other, lesser-known alts have been grabbing a lot of attention lately.

The question is Are these altcoins the right choice from an investment perspective? As far as Audius is concerned, its future might not be what you expect it to be.

Audius is a crypto-powered music streaming service that launched its token AUDIO back in October 2020. Since its listing, the alt has boomed in terms of price and value, trading at $3.5 at press time.

Over the past few months, it has risen by almost 1,705% with a single-day high of 70% yesterday. In fact, on the back of its most recent uptrend, AUDIO has surged by 326% since the last week of July.

A major factor behind this rally is the news that made it popular beyond just the crypto-market. Audius yesterday announced its collaboration with TikTok. This collaboration will allow users to share audio tracks from Audius directly to TikTok. This is a major development, especially since TikTok, in July, banned every crypto-associated promotional content on the platform.

Beyond all the news, what is the networks actual value though?

A look at on-chain data might give us a better idea. This alt is surprisingly not just another crypto that bounced because of market movement. It does have value, one much higher than the likes of Dogecoin that have pumped thanks to its influencers.

In fact, AUDIO has strong development activity behind it, with the same picking up pace since June. On average, it has about 8 developers contributing when DOGE only has 2.

Not only this, but it also has a strong correlation with Bitcoin 0.89 higher than Cardanos. Additionally, the average balance that an address holds stood at $110,798. The reason? The networks low address count was a mere 16.2k at press time. Even so, high volumes of $825 million were seen in the last 24 hours alone

Simply put, AUDIO is primarily a whale token. This means that the entire circulating supply is dominated by whales, with over 91% of it sitting in their wallets.

Such dominance makes the coin susceptible to whale dumps. That, coupled with AUDIOs volatility, and the price can fall at any time, without any warning. Its simple math If it can rise by 70% in a day, it can also fall by the same degree, if not more.

Audius volatility | Source: Intotheblock AMBCrypto

See the article here:
Should you stay away from this altcoin that rallied by 326% - AMBCrypto News