Investidea: Anonymous Cryptocurrencies As A Future Market Trend
Why the popularity of privacy-oriented tokens may grow in the coming months?
There are certain trends in growth cycles in the cryptocurrency market. Usually the primary driver of growth is bitcoin, then the main altcoins and at the very end "junk" assets grow. Before the onset of prolonged stagnation, the market most often goes through all these stages gradually.
The essence of the investment
Given the traditional market trends for cyclical and periodic growth, bitcoin stagnation may begin in the coming months, followed by the redistribution of capital into the main altcoins.
And if we consider the trends of central banks around the world to create CBDC, which most enthusiasts consider as "crypto fascism" - a tool for total surveillance of citizens and a way to censor transactions as opposed to free cryptocurrencies, then we can expect a response from the community.
If we combine these two factors, as well as statistics indicating that not the entire market has recovered from the fall after the May rally, we can make a medium-term bet on anonymous cryptocurrency tokens.
Description of the idea
In the next 2-3 months, there is a high probability of increased interest in anonymous altcoins, so we advise you to take a closer look at some of the most popular ones. You can buy it in an equal ratio:
Monero — 25%
ZCash — 25%
Dash — 25%
Komodo — 25%
We expect by the end of this year that at the moment of the beginning of serious stagnation of bitcoin, the altcoin market will receive a large influx of liquidity and the portfolio will grow in price multiple times.
Risks
It is not necessary to consider the idea as the main investment portfolio, but as part of a long-term portfolio it can justify itself.
The risks of the idea are common to the entire market. In rare cases, the growth of bitcoin can go for a long correction very sharply, without observing the sequence of growth "bitcoin" → "top 20" → "the rest".
If a bearish trend prevails in the market, at first the selected altcoins may feel worse than the market, although in the medium term the demand for assets is at a fairly stable level and a deep fall is likely not to occur.