Some answers to recent readers' questions
In a series of recent articles, I have received many comments and questions from readers. Today I will give a simple answer to a series of questions raised by readers.
1 Types and classifications of DeFi tokens
To invest in DeFi tokens, we need to have powerful information weapons. There is a website that integrates well-known DeFi projects and classifies and organizes information on these projects. This website is defipulse.com.
According to the nature of DeFi projects, this website divides the current well-known projects into five categories: lending (lending), decentralized exchange (dex), derivative (derivative), payment (payment) and assets (asset). Among these five categories, apart from payment, we can pay attention to the other four categories.
The projects collected on the website include not only projects that have issued coins but also projects that have not yet issued coins. As investors, we can focus on projects that have issued coins. These coin-issuing projects are divided into categories, each of which has the following varieties:
Lending projects include: Maker, Lend, COMP, bZx.
Decentralized exchanges have: CRV, BAL, BNT, LRC, KNC.
Derivatives include: SNX, NXM, MCB, REP, VEIL.
The asset classes are: YFI, REN, MET, MLN and DF.
The information it collects is not all the projects, but only selects the relatively well-known projects in each category, so this information is for your reference only.
2 What are the privacy coins mentioned in my article on investment allocation?
In the article "Current Trends, How to Configure Blockchain Assets" on August 20, I mentioned privacy coins. There are only two privacy coins that I am more optimistic about: Monero and ZCash. I am cautious about other privacy coins. The reason why I am most optimistic about these two coins is that their privacy technology is unique in the circle and is still evolving.
Although privacy coins have special technology and unique features, in my opinion, their users will always be a small part, and it is difficult to have large-scale development and potential. Therefore, I suggest that friends who like this kind of coins invest a small amount of money. Investing too much in it.
3 About exchange platform currency
I have repeatedly stated my views on exchanges: that is, I think this round of DeFi tide will definitely give birth to several decentralized exchange giants, and some of the market shares of the existing three major exchanges will inevitably be taken away. thereforeIn the development of the follow-up market, I will sell a batch of the three major exchange platform coins in my hands on rallies. As for the current large number of second-tier exchange platform coins, I think there is no long-term investment value.
4 How high is Ethereum likely to rise in this round of market?
This is a question raised by readers in my previous series of articles on the prospect of Ethereum. I think it all depends on how far the Ethereum ecosystem will develop in the next time.
Frankly speaking, I did not predict that DeFi would have such a great potential to explode earlier this year, so my earlier assessment of Ethereum was mainly based on the fact that the launch of the Ethereum 2.0 beacon chain may bring the price of Ethereum to a new level. The support and incentives of the Ethereum currency price this year are conservatively assessed.
But now, before the main network of the beacon chain is launched, DeFi has driven such a wave of traffic in advance, raising the price of Ethereum by a level. Next, the launch of the beacon chain will continue to take over the class of DeFi and push the price of Ethereum forward.
Although there are such advantages,But I always think that no matter whether it is DeFi or the beacon chain, their popularity is not as hot as that of ICO. It is difficult, but it is still very promising to double the current basis to reach 800 US dollars, and it is also possible to reach 1,000 US dollars, but it will be difficult to go higher.
5 How High Can Bitcoin Go?
Bitcoin is obviously not the leader in this round of market, and it does not have a hot spot itself. Therefore, how high Bitcoin can rise depends entirely on how far the entire ecology of digital currency can develop in this round of market conditions.
At present, the biggest driving force of the entire market comes from Ethereum and its ecology. Therefore, I think the increase of Bitcoin will be limited by Ethereum, and its increase is unlikely to exceed that of Ethereum, so the high point of Bitcoin in this round may be 20,000 US dollars, and it is more difficult to exceed 30,000 US dollars.
