Top crypto trader discloses the strategy to generate highest return on your first $1,000 investment
In a recent video, the popular crypto KOL Lark Davis shares with his subscribers a low-risk crypto portfolio strategy to allocate the first $1,000 of investment to earn the highest yield.
“Cryptocurrencies are not stocks. That’s something you really need to understand. These are not stocks, you don’t get some kind of legal ownership rights by holding on to the tokens. These are cryptocurrency assets, magic internet money so you have to understand them, you have to do a bit of research before actually investing your own money into this asset class because if you have a get rich quick mentality, you’re much more likely to get broke quick in this market”.
The first recommended coin on Davis’s portfolio is Bitcoin (BTC), the premier cryptocurrency asset in the market. The trader advises allocating 25% of the total investment into this crypto.
“Bitcoin is seen as the reserve asset of the cryptocurrency market. It is the digital gold of the cryptocurrency market. It’s your long-term store value, your hedge against fiat inflation. So bitcoin could be the cornerstone of your portfolio”.
Another 25% of the total investment is advised to be allocated into Ethereum (ETH), according to crypto KOL.
“Ethereum is the premier smart contract platform, it is the second-biggest cryptocurrency in the market. Ethereum is the home of the majority of tokens that are built in the entire cryptocurrency economy. It’s the home of the dollar stable coins. It’s the home of decentralized finance and the home of non-fungible tokens”.
USD Coin (USDC)
Lark Davis then put 10% of his investment into USD Coin (USDC). USD Coin is a stablecoin that is pegged to the U.S. dollar on a 1:1 basis.
Every unit of this cryptocurrency in circulation is backed up by $1 that is held in reserve, in a mix of cash and short-term U.S. Treasury bonds. The Centre consortium, which is behind this asset, says USDC is issued by regulated financial institutions.
“Several use cases have been unveiled for the USD Coin. As well as providing a safe haven for crypto traders in times of volatility, those behind the stablecoin say it can also allow businesses to accept payments in digital assets, and shake up an array of sectors including decentralized finance and gaming”, says the analyst.
Chainlink (LINK) is accounted for 10% of the trader’s recommended portfolio. Chainlink is one of the first networks to allow the integration of off-chain data into smart contracts. With many trusted partners, Chainlink is one of the major players in the data processing field.
Due to the integration of off-chain data, Chainlink has attracted the attention of numerous trusted data providers, including Brave New Coin, Alpha Vantage and Huobi. Data providers can sell access to data directly to Chainlink, thus monetizing the information they have.
“Chainlink is by far the leader of the oracle space. They have partnerships and connections than anybody else”.
AAVE (AAVE) & Cardano (ADA)
Another 10% is allocated into AAVE, which is the premier Defi protocol that currently has billions of dollars locked up.
“Aave is a great one to have long term in your portfolio, it’s a very powerful decentralized finance player, it’s a market leader in its field now”.
Cardano also has a place in the recommended portfolio which is also taken up 10% of the total investment.
Polkadot (DOT) is comprised of 20% in Davis’s investment.
“People are getting very very excited about this network, there’s been a lot that’s been built for this network, they’re launching their core products in the very near future which are called parachains. That’s going to really bring the Polkadot network to life”.
According to the crypto KOL, traders should invest in this project now before the end of the year when the parachains are launched as the market will get hype up and explosive.
Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.
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