2 cryptocurrencies to watch for “Buy The Dip” and make long-term profits





Famous investor Warren Buffett once said, “Be greedy when others are afraid.” And with the market crypto down about 40% to $ 1.3 trillion year to date, now may be a good time for investors to look for quality assets that are trading at a discount. Let’s see why Avalanche (AVAX -2.25%) and The Sandbox (SAND -0.35%) should be on your radar.

1. Avalanche

Avalanche is a blockchain designed to host decentralized applications (dApps), self-executing programs that offer networked services. Read also: This cryptocurrency that even crypto-skeptics are conquering. It has faced short-term headwinds due to its association with the failed Terra stablecoin platform. But that challenge doesn’t kill his long-term growth thesis.

In early May, the cryptocurrency TerraUSD, which tracks the price of the US dollar, lost its peg, causing its companion token, LUNA, designed to absorb the volatility of the stablecoin, to collapse. Avalanche also suffered because developer Terra, through the Luna Foundation Guard (LFG) (an organization that held digital assets to help support Earth parity), holds around 2 million AVAX tokens, which feeds fears that it may lose this position to pay real expenses such as taxes or possible litigation.

But with nearly 270 million AVAX in circulation, the sale of LFG shares is unlikely to have a significant impact on Avalanche, aside from some bad press. And investors should keep a long-term perspective.

Unlike most blockchains, Avalanche is naturally deflationary. The platform has a fixed maximum supply of 720 million AVAX tokens and burns (by removing them from circulation) all of its transaction fees. So far, it has burned about 1.8 million units of AVAX worth $ 55 million. This mechanism is expected to help drive the token price up in the long run, although this depends on whether demand increases or remains stable, which is not guaranteed.

2.Sand

Is the metaverse an overrated vaporware or a unique investment opportunity? Only time will tell. But no matter how the concept evolves, blockchain technology is already playing a role in its development. See also: The UAE announces a new law to regulate cryptocurrencies and NFTs. Investing in The Sandbox is a great way to bet on this trend thanks to its first mover advantage in the industry.

Some major financial institutions are optimistic about the metaverse. CitiBank analysts estimate the opportunity could be worth a staggering $ 13 trillion by 2030, becoming the “next generation” of the internet. Cryptocurrencies like The Sandbox are well positioned to take advantage of this trend through technologies such as non-fungible tokens (NFTs), which are a surefire way to establish ownership of digital assets.

The Sandbox has a portfolio of over 166,000 digital real estate packages called LANDS, where individual users can create games and other digital experiences. And because it is one of the first cryptocurrency projects to show tangible progress in building a blockchain-based metaverse, it has garnered considerable real-world interest.

In May, the Dubai Virtual Assets Regulatory Authority announced plans to open an office within The Sandbox to engage with cryptocurrency-related businesses seeking to operate in the jurisdiction. This is a huge vote of confidence in the platform that could attract more investment.

Time to market?

Investing in a bear market is complicated because it is difficult to identify the bottom of the wave. See also: eBay plans to support cryptocurrencies for payments. But time to market is usually more important than timing to market. And while investors may want to wait a few months for the dust to settle, Avalanche and The Sandbox could be excellent long-term bets thanks to their unique designs and expanding market opportunities.

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