Which coin should the portfolio have in 2022?

In one thread On Twitter, professor and investor Adam Cochran recently referred to his portfolio for the year 2022 and his “shopping list” of the potentially best performing coins for the coming year.

“Investing in real assets is not just a hype like startups, you have to be there for the long term.”

Buy dip

However, he reiterated that it is best for investors to prioritize this purchase when prices are falling, rather than “all at once”.

“Many projects in the ecosystem are also in FDV hell (Fully Diluted Valuation). While they’re great products, they don’t necessarily work any better. ”

In this regard, the analyst added that the projects may not outperform the profitability index. One example the professor cited was Solana. It is noteworthy that the project has achieved an excellent profit of 11.219% over the past 12 months. However, he stated:

“Solana had a breakout year, it will be difficult to outperform the market again next year.”

As we can see in early January, Solana cannot escape the bearish sentiment in the larger market. At the time of writing, SOL maintains a 24 hour range of $ 171.31 and $ 179.61. While weekly profits are still down 8%.

Source: TradingView

Four main parameters

So the multi-billion dollar question here is how should an investor place a buy order on their portfolio? Cochran repeats four key parameters of a project in order to make investment decisions in 2022. First, it has to be a working product. Second, the new year is a potential catalyst for the above project. Third, it needs “space to grow compared to similar platforms”. Finally, the prospect of external cash inflows is of particular importance.

“Summary of theses for 2022:

1. Cash flow is king.
2. Infrastructure is queen. “

In addition, the analyst maintains a balanced and diversified portfolio.

“No portfolio is 100% and you shouldn’t consider all the assets in a portfolio equally.”

At this point, it’s important to note that, according to the analyst, most crypto cycles are not really synonymous with “value” stocks. Therefore, he recommends looking at logs that “generate real revenue”.

“Even protocols that do not generate revenue for tokens are still in great demand, such as loan protocols where lending rates will increase tenfold on average by 2021.”

However, the partner of Cinneamhain Ventures also focuses on the “analysis of quality and source of income”:

“It is clear that logs with actual revenues in 2021 regularly perform below average.”

Portfolio “divine”

Essentially, this means “his 2022 picks include classic DeFi products” with an experienced team. Therefore, he chose Ethereum (ETH), Convex (CVX), Yearn (YFI) and Keeper (KP3R) with “strong upward trend” as the driving force for his portfolio for his “God” portfolio.

Meanwhile, Ava Labs President John Wu expected “Ethereum destroyers” will be added to the portfolio in 2022.

“Ethereum 2.0 was maybe the game changer two years ago, but the new generation Layer 1 has beaten it.”

The projects in the portfolio include AVAX, SOL and DOT.

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