Which altcoin is right for this summer’s high-profit portfolio?

Bitcoin price hovered broadly in a range after recovering from the May 23 crash. In contrast, altcoins have seen double-digit profits over the same period. This leads traders to the question of whether it is worth continuing to track Bitcoin through the dips and piles along the way, while altcoins offer similar or higher returns for the portfolio.

The ROI of the top altcoins is relatively higher and market volatility has resulted in higher returns since summer 2020. If you used $ 100 to buy Altcoins a week ago, the current value is $ 130 when you buy TRX and $ 140 when you buy SOL or DOGE, and close to or less than when you buy Bitcoin.

What does this mean for a day trader? If trading on exchanges incurs a number of fees such as transaction fees and there are fees associated with buying and selling altcoins, the entire transaction will cost less than an investment of similar value. Since the fees for trading altcoins such as TRX, XRP, or DOGE are relatively lower than Bitcoin on most exchanges and spot markets, it is generally easier and cheaper to trade altcoins than Bitcoin.

Altcoins offer a higher ROI for traders in the short term and this is a well-founded argument with statistics from summer 2020 and this year from the last week of May 2021. Traders can benefit from a portfolio that includes many mid-cap altcoins like LTC, ETC, MATIC, LINK or contains XRP.

This year, traders have made big profits on meme coins like DOGE, as opposed to short-term investors who have had a negative ROI from buying Bitcoin. Although the average cost is lower thanks to the price averaging strategy, the total cost of holding, trading, or buying Bitcoin makes it more expensive and less profitable while the risk is similar or higher.

Bitcoin 1

relationship Dominance of BTC and top altcoins | Source: Coinmarketcap.com

Based on the chart, altcoin dominance has improved and gained a foothold since May 2021. However, the percentage of Bitcoin dominance carried by institutions and large wallet investors has remained constant. While Bitcoin’s price movement has impacted market capitalization, investment flows, and sentiment of altcoin traders, altcoin trading could be the way to go in the summer of 2021.

To find out which altcoins are best for this summer’s high-yielding portfolio, let’s take a look back at summer 2020. According to data from coinmarketcap.com, the price of LINK went from $ 4 0.09 to $ 16, an increase by almost 275% from the beginning of June 2020 to the end of August 2020. The price of KMD increased 53% over the same period that it peaked in July, the ROI was 53% and declined until the end of August 2020.

Some of the current high capitalization altcoins such as XLM, MATIC, SOL did not deliver any significant returns in the summer of 2020. Back then, it was mostly dominated by Bitcoin earnings. Relatively highly profitable altcoins have shifted since 2020 due to changing market conditions and sentiment, but traders continue to benefit from higher returns from altcoins. Is it still worth chasing Bitcoin when the price fluctuates and crashes every few weeks?

Minh Anh

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

970x90.gif (970×90)