Wondering if you should “buy the dip?” Take a look at the 3 cryptocurrencies that you can buy now in this volatile market.
The term altcoin refers to any cryptocurrency other than Bitcoin. The past couple of years have seen the rise of altcoins. Many of these altcoins are performing well even amid the ongoing crypto pullback. Keeping this in mind, we have listed the three cryptocurrencies to buy now in this market volatility.
In 2017, altcoins primarily included Bitcoin competitors such as Litecoin, Dogecoin, etc. At the moment, with the explosion of decentralized finance (DeFi) and the increased usage of smart contracts, some of the best altcoins belong to the projects and companies in the blockchain space. These DeFi tokens offer more than just speculative value. They have quantifiable revenues and great utility within the DeFi sector.
Blockchain companies issue their cryptocurrency tokens and often make these tokens a requirement to interact with their platforms. If a platform adds value and people want to use it, they will need to purchase their respective native coins, driving up the asset’s price. Some tokens even pay dividends to investors from revenue generated through their smart contracts.
Take a look at the top 3 cryptocurrencies to buy now. They include a few of the most promising projects in the blockchain space today.
3 Cryptocurrencies to Buy Now in This Market Volatility
1. Uniswap (UNI)
Uniswap is an Ethereum-based decentralized exchange (DEX) for exchanging Ethereum tokens through liquidity pools.
Uniswap was built to tackle some of the pressing problems facing the market. Its decentralized nature helps in reducing the power and control accumulated by major exchanges such as Binance and Coinbase. Additionally, Uniswap plays a critical role in providing new businesses access to international liquidity.
Uniswap: Benefits and Offerings
Uniswap delivers significant benefits to users and the market as a whole. The platform became popular due to its open nature and simple interface. Trading on Uniswap is easy. Users can execute trades with a click, and the entire network is notably flexible due to its characteristics.
Since Uniswap is decentralized, there are usually price differences between its token listings and centralized exchanges. These differences can equal sizable returns for those who arbitrage trade between CeFi and DeFi. Today, numerous traders earn profits exploiting price discrepancies between Uniswap’s price quotes and the rest of the market.
Uniswap offers users the ability to exchange Ethereum-based digital assets instantly by tapping into its smart contract liquidity pools. These liquidity pools are filled by other users, who earn the exchange fees for providing liquidity.
Uniswap fees must be paid with the UNI token, making it one of the hottest coins in the space. For all these reasons, buying UNI now is likely to generate massive returns in the future.
2. Compound (COMP)
COMP is the governance token of the Compound Decentralized Finance protocol. DeFi networks aim to convert traditional financial systems to decentralized versions. In this manner, users gain a share in the profits that were once only available to large financial institutions.
Compound is an algorithmic money market protocol that is built on the Ethereum blockchain. Notably, this network is credited with starting the current DeFi boom. In addition, Compound was the first platform to introduce yield farming to the market in 2020. Yield farming is similar to staking crypto in many ways.
Earning Returns With Compound
Compound allows regular users to secure a passive income. Anyone can earn by lending out their crypto holdings. Users can leverage their holdings without completely relinquishing ownership of their tokens.
Users lock their crypto into large farming pools. They receive rewards based on the amount of crypto they lock and for how long they participate in the pool. Unlike staking pools, yield farming pools feature much shorter lockup periods. In addition, many offer no necessary lockup periods.
COMP is the primary governance token of the network. This unique financial instrument allows token holders and delegates to vote on important protocol decisions like new collateral types, borrowing power, and interest rate models.
Compound is a growing platform. Recently, COMP was listed on the popular centralized exchange Coinbase. Buying COMP now is highly likely to double your investment.
Check Out: Why Compound Will Skyrocket
3. Aave (AAVE)
Decentralized lending currently offers higher interest rates than centralized lending with better security and anonymity. Aave, one of the leading lending protocols around today, receives more significant collateral than what a user borrows. A smart contract safely holds collateral in escrow throughout the loan term, replacing the need for a trusted middleman.
Aave offers 10% APY for certain stablecoin loans with no know-your-customer (KYC) required - an offering unheard of in traditional finance.
Aave is a decentralized lending system that helped drive interests in the DeFi sector to new heights. This next-gen protocol was one of the first to enable users to lend, borrow and earn interest on crypto assets. Furthermore, there is no need for a middleman when using Aave because the entire system is run autonomously via smart contracts that live on the Ethereum blockchain.
Since its introduction, Aave’s developers have taken great care to make their network accessible to all. The open access and ease of use of this platform make it ideal for institutional and retail investors. Consequently, Aave has grown to become one of the most popular DeFi apps in the world. It has potential for additional growth as well.
Aave: A Fast-Growing DeFi Protocol
There are many benefits gained when you utilize this decentralized financial protocol. For one, you gain transparency over the entire network’s lending processes and activities. Traditional lending services operate in a closed-door manner that leaves you in the dark about its activities with your funding. With Aave, everything is on the blockchain for the entire community to see.
AAVE is the utility token for the network. This ERC-20 token entered the market in November 2017. AAVE is a deflationary asset listed on dozens of exchanges today, most notably, Binance. Developers have stated intentions to make AAVE the primary governance token for the network soon. Buying AAVE now is likely to generate massive returns in the future.
Bitcoin, the oldest cryptocurrency, has now become a household name. However, there are many other assets in the market oozing with potential. 2021 could be the year that many altcoins hit prime time. As people begin to understand altcoins through their real-world use cases, experts believe UNI, COMP, and AAVE to be the three cryptocurrencies to buy in this market volatility.
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Virtual currencies are highly volatile. Your capital is at risk.