What to buy during the crypto market correction period😌

Senior analyst at Bestchange.ru Nikita Zuborev on how to collect the optimal investment portfolio for a period of 2 months or more

The opinions of the experts may not coincide with the position of the editorial board. We does not provide investment advice, the material is published exclusively for informational purposes. Cryptocurrency is a volatile asset that can lead to financial losses.

Against the background of moderately negative forecasts of technical analysis, we propose to bet on tokens with a high social resource in medium-term planning. Long-term positions related to the DeFi segment remain relevant, but their growth depends more on the mood of investors, so we do not recommend opening new positions or closing old ones yet.

The portfolio for a period of 2 months or more may consist of cryptocurrencies, which are most often mentioned by media personalities, and the market responds positively to their increased citation in the media.

ETH - 25% (Ethereum)
DOGE - 25% (Dogecoin)
BTC - 20% (Bitcoin)
BNB - 20% (Binance Coin)
TRX - 10% (TRON)

Such a portfolio is highly likely to respond to most media statements, with common drawdown risks at the level of market averages.

We have already seen that the digital asset market is very markedly influenced by media statements. Now the market is going through difficult times when investors are in serious uncertainty - "an expected correction or the beginning of cryptozyma." However, celebrity's statements continue to affect the market even in the face of uncertainty, as evidenced by the recent rise of bitcoin to $40,000 following statements by Tesla and SpaceX head Elon Musk and MicroStrategy CEO Michael Saylor.

The correction is likely to continue until some high-profile event. The market will be able to resume growth immediately after large purchases of cryptocurrency by foundations, companies or new shares in support of the industry.
We tried to choose a portfolio of tokens, "positive manipulations" of which are observed more often than others. It is quite likely that a serious PR campaign in support of at least one of the tokens from the "top of media personalities" will begin in the coming months. In addition, most of the selected tokens have several growth factors other than a high social resource.

The risks of the portfolio include the ongoing correction and the overall decline in crypto market capitalization against this background. But this is relevant for the industry as a whole.

The exceptional risk of the portfolio can be considered the opposite effect of its main advantage - a high degree of dependence on the opinion of media people. We have already been able to assess in practice the power of how Elon Musk's tweets can increase the momentum and depth of the fall in the price of bitcoin.

Portfolio can also be affected by reputational risks. Update delays, transaction freezes, hacks in Binance, TRON and Ethereum ecosystems can have a negative impact on portfolio value.

In a negative scenario, the portfolio will follow the overall market trend, and in the best it will be able to get much ahead of it.

According to most forecasts, the "growth cycle" after bitcoin halving is not over yet. Investors expect growth to resume with new records by the end of 2021.