Those who hold more than one asset have a wallet that can perform better, with lower risk. This is how the portfolio manager and partner at BLP Asset, Alexandre Vasarhelyi, started the debate promoted by Infomoney, whose theme was investment security, especially for people with less experience in the crypto market.
For Transfero’s Director of Products and Partnerships, Safiri Felix, there should be redoubled caution when building a cryptoasset wallet. “We note several assets that have an explosive valuation, but when we look at the details, we end up realizing that there is appreciation because they have little liquidity, and any relevant flow ends up making the price stretch a lot. So what makes the most sense is to build the crypto wallet brick by brick, separating what long-term investment from tactical positions is”, he pointed out.
Ethereum grew throughout 2021 with DeFi applications
The participants also talked about Ethereum and other altcoins during the debate, such as Solana and Cardano. In Felix’s assessment, ETH has evolved this year, becoming a deflationary coin and with the prospect of validation model migration. “DeFi, the hype of NFTs and others coming up on the network are driving Ethereum”, he commented.
“Bitcoin aims to be a currency, but Ethereum is completely different”, Vasarhelyi added, mentioning that ETH proposes to be a ‘decentralized computer’ on which users build and run their programs. “The NFTs themselves are a product stored in this decentralized database. It has grown a lot because usage has exploded. We are just at the beginning of a long road”, he said.
On smart contracts, game currencies that have begun to skyrocket, and other assets that have emerged, Felix warns that there are three main precautions before investing: analyzing what the asset proposes to do, evaluating the differentials of the technology itself, and finally, how the community involved with that cryptoasset is engaged. “It is these people who will both encourage the development of the protocol and also disseminate it to new users”, he said, stressing that the role of this community is essential to support the project.
Solana, Cardano, Polkadot: which to invest in?
Felix and Vasarhely agree that other projects, such as Solana and Cardano, have specifics. Solana works very well for game development and the speed at which its ecosystem was built.
But there are second layer Ethereum projects. “It’s very hard to say which one is going to take off”, Vasarhely said. Cardano, on the other hand, according to Felix, “it promises a lot, but delivers little”. Another project mentioned by Transfero’s director was Polkadot, which differs from others for implementing a differentiated proposal.
The metaverse applications were also the target of debate, and Vasarhely said that the gaming community is more united, which should boost such tokens.
With over 14,000 cryptoassets on the market, Felix feels that the best strategy for deciding where to allocate money, beyond BTC or ETH, is to seek information. “An investor will not put his capital because of a Twitter post, but by reading reports and analysis”, he said, having Vasarhely’s agreement. According to him, this should be the same positioning regarding the crypto market.
Felix reinforced that “intellectual humility” is essential in this market. “It is important to think about the folllwing: will an investor with little experience in the crypto market, alone, watching videos on YouTube, have a better insight than the analysts teams at Transfero, BLP, and many other specialized assets managers? It doesn’t seem likely to me. Can it happen? Sure, but then will you have made money because you got lucky, or because you got the right trade?”, he questioned, stressing the importance of having as much information as possible before making any choice