Abstract: The most profitable cryptomorphs in 2020
After a very strange year for the markets, cryptomyces suffered a pandemic after only leaving a long market downturn and became stronger
As we see every year, there are always big winners in the crypto space with four digit percentage increases.
Let’s start by examining Bitcoin before moving on to some unknown projects that have risen rapidly this year.
In January 2020, Bitcoin cost about $7,000. Halving was coming in May and things were generally optimistic in the market.
Then March arrived and the blockages started to occur all over the world because of a new deadly disease. In retrospect, most would agree that the sales observed in the financial markets were an exaggerated reaction, but at the time there was great uncertainty about how Covid-19 would spread and what impact it would have.
It was speculated that the liquidation of Bitcoin was actually caused by miners who were trying to profit before their rewards were halved in May. The evidence? Most of the Bitcoin Benefit sold was newly-built Bitcoin.
At the time of writing, Bitcoin cost $23,200 – a 205% increase in price since the beginning of the year and a new historical record, seeking to discover new highs in 2021.
Monthly term for BTC USD: TradingView
The Chainlink (LINK) also had a great year, going from $1.76 at the beginning of the year to now reach $13.89, representing a 629% increase in price. Chainlink is a fascinating addition to the Ethereum blockchain, as it is able to take real-world data and apply it to intelligent contracts. If smart contracts become more widely used in the future (a distinct possibility in the increasingly remote world), then this project may still be severely undervalued and have more serious gains by 2021.
Chainlink performance from December 2019 to December 2020: Coingecko
Some outliers also made big gains this year, with Gamestars (GST) gaining 68,999%. To put this in perspective, a $100 investment in January in GST would now be worth $69,000. Other symbolic annual increases included Zap (ZAP 6.374%), Auctus (AUC 5.489%), Aave (AAVE 5.121%) and Starchain (STC 3.674%).
Having strength for hodl
In comparison with the last years, the cryptomeda market seems to be entering a bullish phase. Having shaken many people, the bearish market in 2018 was a consolidation phase for large scale investors who used the period of fear and uncertainty to accumulate as much cryptomeda as possible before the next bullish phase.
Buying cryptomoeda at cheap prices is not an exclusive strategy of the crypt markets. The stock and foreign exchange markets also have long market cycles in which the most stable hands generate the best returns.
Of course, choosing the right asset to invest and maintain is also important, as is knowing when to stop and when to make a profit on green.
Maybe you’re thinking about what the cryptomoeda market will be like in December 2021 – one thing is for sure; there will be winners and losers, so how are you sure to keep one of the winners? Spread your bets. As can be seen in some of the above examples of winners this year, a small investment in a project that has a four digit percentage increase can give returns of tens of thousands of dollars.
Let’s say you have $500 to invest in January 2021 and don’t mind losing. You could simply buy Bitcoin with this and see where it will be in years to come; however, to spread this money, say, 10 different projects for $50 each could generate a much bigger return for an investor if one of these projects ended up making a list as above this time next year.