This is a real time writing of my top 5 picks to outperform Ethereum for Q4. Every token is an Ethereum competitor and tends to be less risky than small or medium cap plays.
Exit-Strategies
Last night Bitcoin jumped from 61.5k to around 66k in one hour, the market exploded. Waking with such massive gains to my portfolio I was wondering if the market would flip to being overheated again. During times of extreme greed, be fearful they say, we preach this also. With this bull market proceeding I was heavily pondering my exit strategies, did I derisk enough? Was I too aggressive in my growth picks? Exit strategies do not necessarily mean you are leaving the market; it can mean a different thing for every investor. That said I decided I needed a top 5 list to take profit into. Aside from this list, my savings account token is Ethereum, but these are the top 5 I hope will continue to outperform Ethereum this quarter. Please check out my writing on why I hold Ethereum instead of Bitcoin if you are interested [article]. I will attempt to roughly place these tokens in order of risk, the first token being the least risky, the rest to follow.
Solana (SOL)
For the sake of transparency, I no longer own Solana, I bought it around 30$ and sold it around 90$, can’t win them all. That trade reminded me to be happy with gains no matter what other potential rates of return have been missed. After all, how often can you do a 3x in a matter of 2 weeks in the stock market? Solana has grown massively this past year, much in part of Sam Bankman Fried, the owner of FTX. Almost anything he touches turns to gold, Solana included. Solana is an incredibly fast blockchain and has increasing NFT volume daily. Users were sick of paying the insane gas fees on Ethereum and moved to Solana to mend their broken wallets. It is important to remember how massive Solana is today, at a 75-billion-dollar market cap I am not seeing a 10x in the near future. I do however believe it will outperform Ethereum for the next few months if we stay in a bullish market.
Avalanche (AVAX)
While a bit late to the party, we covered Avax on Oct. 20th, here is the writeup [AVAX]. In a nutshell, Avalanche is an Ethereum interoperable Blockchain that has the fastest finality of any chain thus far. This paired with the 4 cent average transaction price is a recipe for success. As mentioned I am deeply deployed into the JOE/AVAX farming opportunities, I am yielding both JOE, the main DEX on Avalanche, and AVAX at the same time. I can then take these tokens and stake them, essentially triple dipping the gains. I am biased, but Avalanche has become my favorite blockchain to use for defi and trading, its just that user friendly. Avalanche can now be purchased on Coinbase PRO, and sent to the Ethereum compatible C-chain on the Avax Wallet. Avalanche has a total value locked of over 10 billion and allows for popular Ethereum based protocols such as AAve and Curve.
Terra (LUNA)
During the first week of October, I sold as large chunk of my ADA into LUNA. Here is the article on why [LUNA]. Luna is a token the institutional investor will greatly appreciate. Users can Burn Luna from existence temporarily and convert the USD amount into UST their specific stable coin. Users can then take this dollar valued token and use the Anchor protocol to gain around a 20% yield. 20% is nothing to scoff at, this greatly performs the average stock market return and with no major downside risk. Luna recently added a permanent burning mechanism also with the Columbus-5 upgrade. Essentially, a small percentage of all fees are burned from existence reducing the circulating supply, less supply more value. This protocol alone is one of my hopefully exit-strategies if the market turns bear, I can yield 20% and wait for a better deals.
Polygon (MATIC)
Polygon is one of the few tokens I will be holding along with Ethereum if the market takes a turn into bear territory. Our writeup on Polygon can be found >> [MATIC] . Polygon is king of networking and collaboration having some of the fastest growing partnerships in all of crypto. Polygon is an excellent choice for blockchain gaming, NFTs and more. Using polygon is extremely fast, cheap, and has an Ethereum feel without the headache. Recently Polygon partnered with Draftkings, an old stock pick of mine from last year. Draftkings hopes to use Polygon to enhance the user experience and bring NFTs to the masses [1]. By using blockchain technology, clear winners of sports betting can be decided with no middle man, smart contracts could pay the winner with the agreed upon terms with little hassle. I am currently staking MATIC in my Ethereum wallet, gaining 10-12% yield and plan on leaving it there long-term. MATIC can be found on Coinbase Pro and most major exchanges, do remember it is an ERC-20 and can’t be sent directly to Polygon from exchanges currently.
Harmony (ONE)
This final token I did struggle with immensely, I had trouble choosing between MOVR, FTM and ONE. While I am bullish on all of them, I went with Harmony, because they have kept the head down and work approach and have built an amazing blockchain from the ground up. Harmony is easy to use, and cheap, along with our other picks. Harmony was designed with Ethereum in mind, your Harmony address is easily converted to an Ethereum counterpart. The ecosystem is JUST getting started, and I believe this is an explosive growth pick for massive gains. While riskier than the other picks, I believe harmony is greatly undervalued. I am currently staking a large amount of the ONE token. I am also deployed on the Viperswap farm for the LUNA/ONE pair gaining a whopping 600% APY. I am then able to take some of this reward and stake the leftover VIPER tokens to stack yields.
Conclusion
I have used every one of these networks and enjoyed them when compared to Ethereum, this is the main reason they have gone up in price. They provide useable products today, not empty promises for tomorrow, this is massive in crypto. I own some NFTs on most of these blockchains also for some early asset exposure just incase the first NFTs on each chain pump like Cryptopunks did. Please remember to always do your own research, this is just my opinion based on thousands of hours testing the networks and researching. Stay safe out there and please share some of your favorite picks on our social media, we would love to chat about them!
[1] https://www.draftkings.com/about/news/2021/10/polygon-and-draftkings-enter-into-a-strategic-blockchain-agreement/
