Where I Stand When It Comes To Layer 1s

Ethereum & “ETH Killers”

Looking at ETH and the challenges it has faced over the years, it still remains dominant despite multiple hurdles. It does appear as if ETH is the market’s “darling” when it comes to layer 1’s. I must be honest, I too, share a similar opinion. It will be difficult to dethrone Ethereum but definitely not impossible. I do however strongly doubt whether the shift to POS will take place in August but hey, you never know. I have chosen to expose myself to a few ETH killers as well, not in the hopes that one of them will dethrone ETH but in a realistic investment strategy. I believe that there will ultimately be a handful of top layer 1’s that will succeed for various reasons and I am doing my best to position myself for that outcome. ETH is a no-brainer and should be in every portfolio, just my opinion of course. So let me run through a few of my layer 1 investments outside of ETH.

Solana

No surprises here, despite the criticism, I believe Solana will be absolutely massive in time. Due to the fact that I have such a good head start with Solana, it only makes sense that I would continue to build upon that foundation. My first Solana was acquired below a dollar on Hotbit when it first launched. If you want to grab coins early, or can’t find them on other exchanges, try Hotbit. Withdrawal fees for certain coins are a bit high but there are ways to work around that. My accumulation for Solana at this point takes place via a passive mechanism dedicated to SOL accumulation. Solana and other layer 1s generally have income benefits in the form of staking, which in my opinion is safer than lending.

Avalanche

AVAX is my third-largest holding, after ETH and SOL. I think Avalanche stands a really good chance as well. Avalanche transactions confirm in under two seconds. Transactions per second can basically go to infinity with subnets. Furthermore, consider that AVAX is currently trading at $24.22 and you begin to see the value entering into the market. Alts can still go a lot lower and most likely will. However, if you modestly begin to dollar cost average into the market, it shouldn’t be too risky. Take note of the term “modestly”, as you want to reserve the majority of your capital for a confirmed bottom. Deploying all your capital at this point wouldn’t be wise. At the risk of sounding like a broken record, you need to prepare for all scenarios.

Cardano

Historically, I have not been a big fan of Cardano. However, I am beginning to see tremendous value below $0.55 and have begun a slow accumulation of ADA. I am currently sending my ADA to Celsius in order to take advantage of the massive discount currently available on the CEL token. Choosing to earn all of your interest in CEL provides better returns, especially now that the price of CEL is so low. Earning interest in CEL at this stage basically provides users with ten times the amount of CEL tokens they would have received had they been earning CEL at the all-time high levels. I think that this will prove to be a very viable move long-term. Cardano is also poised to make some advancements during the next while, which will further assist the price once we eventually experience a bottom. Cardano is already down 85% from its all-time high. Great accumulation opportunities are beginning to open up for long-term ADA investors.

Final Thoughts

These are my top three ETH alternatives. I also hold some Polkadot and FTM, which I am looking to slowly increase as well. I may consider NEAR but I am still undecided and don’t really want to diversify too much. Sometimes diversification can also be a bad thing. It’s a fine line and one that needs to be carefully addressed. I think we are still going to see some good buying opportunities in the coming months. It’s definitely time to plan and strategize your approach to this bear market if you haven’t done so already. Enjoy the ride!

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

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