Despite the volatility associated with cryptocurrencies, it makes sense to allocate a small portion of your total portfolio towards these digital assets. I would advise investors allocate between 5% to 10% of their investment capital towards cryptocurrencies.
Further, a majority of an investor’s crypto portfolio should be geared towards holding market leaders such as Bitcoin, Ethereum, and Terra. But investors with a very high-risk appetite can gain exposure to lesser-known tokens that have the ability to derive life-changing returns over time. Here, we’ll take a look at two such cryptocurrencies that you can consider buying right now.
Tron
Valued at a market cap of US$7 billion, Tron (CRYPTO: TRX) is the 21st largest digital asset in the world. Launched in 2017, TRX tokens were initially ERC-20 based, which means they were deployed on the Ethereum blockchain. However, in 2018, the tokens were moved to their own blockchain network.
Tron was developed with the goal to provide ownership rights to digital content creators who generally receive a small portion of the total income. Tron would allow consumers to reward content makers directly and bypass intermediaries such as YouTube and Facebook.
The Tron blockchain network also supports smart contracts, which allows it to host decentralized applications.
The TRX token has gained over 15% in the last seven days after the blockchain’s founder Justin Sun announced the launch of a native stablecoin called USDD. According to Sun, the USDD will be an algorithmic stablecoin such as TerraUSD and Frax Finance. A stablecoin is a digital asset that is pegged to a fiat currency which is the U.S. dollar in this case.
Sun explained, “When USDD’s price is lower than 1 USD, users and arbitrageurs can send 1 USDD to the system and receive 1 USD worth of TRX. When USDD’s price is higher than 1 USD, users and arbitrageurs can send 1 USD worth of TRX to the decentralized system and receive 1 USDD.”
A DAO or decentralized autonomous organization will manage the USDD stablecoin and administer the reserve with an interest rate of 30%. Additionally, the DAO will provide custody reserves totaling US$10 billion, which will serve as collateral for the USDD.
Earlier this week, Tron also confirmed it now has over 90 million accounts and is expected to end June with 100 million accounts, which indicates that TRX should benefit from widespread adoption.
Gains Network
Gains Network is a DeFi ecosystem built on the Polygon blockchain. Its gTrade platform is the first to provide decentralized leveraged trading to users, where you can trade the price of stocks on-chain.
The gTrade platform currently supports three stocks that include tech giants such as Apple, Meta Platforms and Alphabet. Once the beta launch is successful, more stocks will be available on gTrade for traders.
Gains Network confirmed there will be no funding or borrowing fees and the spot prices of stocks with reduced liquidation risk. Additionally, Gains Network explains it will use a synthetic leveraged trading architecture that will be powered by the GNS token.
The trades will be executed using two liquidity pools for pairs listed on gTrade, which means the protocol will not have to build liquidity for each pair.
gTrade stated its all-time volume of US$11 billion will increase once popular tech stocks are available to users. It has a daily trading volume of US$155 million, which means liquidity should not be a concern.
