Cryptocurrency strategy 2018: to store or to diversify?

This year has been absolutely insane for cryptocurrency. For traders it was filled with an infinite number of possibilities and lack of time to evaluate at least a small portion of them. Because of the rally cryptocurrency every medium — and long-term strategy, implemented with a certain determination that was ridiculously successful, regardless of whether it was only in the storage of bitcoin, investing all funds in Bitcoin Cash, portfolio diversification on a large number of altcoins or the investment each popular ICO.

The new year is inexorably approaching, so now traders need to look at your portfolio and decide how they will position themselves in the coming year. The article will be assessed the current situation in the cryptocurrency market and will attempt to predict what investments will be most profitable in the next year.

Most likely, in 2018 will be remembered as intermediate. A year after the public interest in bitcoin has increased dramatically, and the year before the selected path scaling (SegWit, signature Snorra, MAST, Lightning Network) will really bear fruit. Obviously, traders will find many opportunities in the coming year.

At that time, as some community members argue for the use of bitcoin as digital gold, the gap between supporters of positions SoV (bitcoin as a means of accumulation) and MoE (bitcoin as a medium of exchange) is likely to grow as the high Commission will be an integral part of the work of Bitcoin.

Refusal Segwit2x indicates that increasing the size of the unit through hardwork no protection from playback transaction is unlikely to be successful. Political reasons, which also served as the abandonment Segwit2x, indicate that community members are very difficult to agree on which of the networks in the end to call «Bitcoin».

In fact, it is unlikely that the increase in block size using hardwork can be carried out so that the new network was not recognized by Aldona. This means that the part of the supporters of the idea MoE can leave the primary network in 2018, giving the preference to alithinou, which will focus on the implementation of the decisions of the second level. Here are a few contenders for this role.

Bitcoin Cash

The situation: Although the size of the block Bitcoin Cash and may seem to be the main factor that will attract supporters of the MoE, its main strength lies in the clear belief on the issue of scaling, which adhere to community members.

Community – the cornerstones of success of any cryptocurrency, they initiate the market demand, which causes different companies to support the coin, and they provide the value and security of a coin. The strength of this community combined with legacy code base and the distribution of coins of Bitcoin (BTC) Bitcoin Cash makes a serious contender to capture market supporters MoE in 2018. Even if it does not constitute a direct bitcoin conference, it is clear that this project has a strong support group.

Recommendation: Keep as much Bitcoin Cash how much BTC, if you have them. If not, try to buy one of the corrections.


Situation: Litecoin (LTC) is essentially the bitcoin equivalent with a block size of 4 times more. Actually this is achieved is reduced by 4 times the interval between the blocks. The coin fairly long history, its founder – a popular cryptocurrency expert Charlie Lee, and she remains aloof from the conflicts of the community of Bitcoin. Introduction SegWit allow the chain to take advantage of the Lightning Network, which means the appearance in 2018, with Litecoin, high throughput, and the possibility of using other solutions for scaling Bitcoin in the future. In fact, the growth of LTC not interfere with technical storoni not four times greater than the maximum number of coins, and its initial positioning as a «younger brother» of BTC. Because of this, litecoin will always cost several times less than bitcoin.

Care instruction.ngatia: Store 4 times more LTC than BTC.

The Ethereum

The situation: While Ethereum and no restrictions on the block size, the limit of gas in the blocks is limited – it is defined by the miners for each block. At the moment the Ethereum network handles approximately 800,000 transactions per day with an average amount of Commission per transaction 60 cents. Bitcoin currently handles approximately 350,000 transactions per day with an average Commission above $ 10 for timely contact with the unit.

At the same time, this does not mean that Ethereum (or Bitcoin, Litecoin or Cash in this case) is better than Bitcoin. In fact, it scales worse than Bitcoin, though the cost of processing the transaction is borne at the nodes, not users. The Ethereum community is aware of this and knows that it must develop new methods of scaling to supporters of the Mine, which they now plan to create using sharding (Casper technology that can be integrated into the core network in the second half of 2018 or in 2019) and with the help of Raiden. Do not forget about the main difference between bitcoin and ether — issue of a token is not limited, because the project was never brought positioned as the cryptocurrency. The main purpose of the broadcast is to be fuel for smart contracts, and the monetary functions will always be his side.

Recommendation: do Not consider the ether as a long-term investment, but it can be a great speculative tool due to the high liquidity.


The situation: While supporters of the MoE at the moment, the situation in the network of Bitcoin does not seem promising, there are some factors that can change it for the better in 2018. The current high fee, most likely the result of hype and speculation with bitcoin that will not necessarily remain at the same level in 2018. Commission may be reduced by natural means. There is a possibility that some large company, such as Coinbase, introduce SegWit that will significantly reduce the size of the mempool. And the introduction of SegWit with most of the major players will ensure the stock to scale up to 80% of the current. In addition, in 2018 you can expect the beginning of broad deployment of network devices.

Recommendation: Never sell all your bitcoins.

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