Your Bitcoins are sleeping. You are glad that Elon's apparent craziness pumped the price higher and you are patiently waiting that BTC hits $50k without knowing if will happen next week or next month. You think it is just a question of time, but you would like to do something with your coins in the meantime. As you feel it is not the right time to buy a new car, you would like to swap some of your Bitcoins for a good pumping altcoin.
There are three options:
1) You look for a low cap token. They are so many that it is challenging to pick one. Furthermore, the risk is proportional to their volatility. However, there are a few good DeFi tokens, with great potential: Injective Protocol (INJ) is a good example. You may take a bit of it, it might be worthwhile.
2) You bet on a mid cap one. Still risky, but less. I would pay attention to the smart contract blockchains, e.g. ALGO, ATOM, or the promising Tezos XTZ
3) You look at the top ones - ranked by market cap, let's be factual:
Bitcoin BTC $890,382,095,233
Ethereum ETH $204,257,897,524
Tether USDT $31,184,553,869
Cardano ADA $29,434,443,864
Ripple XRP $26,775,683,594
Polkadot DOT $25,357,892,888
Binance BNB $20,059,803,003
Key points:
ETH will remain the #2 for a while... too far away from BTC to make the flippening, and 7 times bigger in market cap than the next one
XRP is #5 now... due to their little problems with the SEC... Noboby knows how it is going to evolve. Personally, I would not bet on it
ADA is #4... 5% below USDT in market cap... So they might be the #3 next week. Who could have predicted that three months ago?
DOT is slightly out of the top 5, due to ADA bull run, but will come back in the top 5 if XRP drops again, which is likely to happen
BNB surged so much this week that it is now pretty close to DOT. If BNB & DOT surge again, they will push XRP out of the top 7
Okay, that's cool, but which coin to buy now? Which one is going to surge again? I am not a financial advisor, but there are some facts:
ETH is a good choice for the long term. Just imagine when ETH 2.0 is fully launched... It's going to be crazy. Let's target 2022 at least...
ADA and DOT are competing to be the second smart contract blockchain after ETH. Both quite promising, especially for DeFi. On top of that, ADA is just below $1... If it goes above that psychological threshold, it will surge again... It could be close to ETH cap in a few months
BNB is the winner of the week. The BTC bull run had an immediate impact on BNB, which is now above $130. Furthermore, the quaterly BNB burns constantly pump the price higher... as well as all the numerous DeFi projects on the Binance Smart Chain, with low transaction fees...
In summary, a good mix could be:
A large portion of BTC: it may pump higher (Elon + Mastercard + Grayscale) - if it dumps, the altcoins will dump stronger
A small portion of low caps: e.g. DeFi layer-2 DEX tokens like Injective Protocol (INJ) - due to Ethereum high transaction fees
A good portion of ETH, ADA, DOT, BNB... With ETH for the long term, ADA + DOT for mid term, and BNB for the next BNB burn
I would recommend to keep some stable coins as well, at least 10% of your total value, just in case of crash... to buy more tokens at a low price.