Altcoins to buy: Crypto founder is betting big on these 4 tokens

Gadit recalled coming in at around $14 in ethereum (ETH) at the start of the year, only to see it shoot above $1,000 in January 2018. Hoping to capitalize on the momentum, he started his own crypto-focused fund management.

“I had the thing of analyzing projects, reading their white papers and talking to the founders who were much more accessible than they are today,” he said in an interview. “Obviously not everything worked out, but a lot of these projects did very well.”

As Gadit delved deeper into the business, he noticed that the crypto market was still dominated by retail traders rather than hedge funds or professional investors.

“I realized that instead of doing the big ticket, it should go to the more commercialized and more retail audience,” he said.

Soon after, he met David Rodriguez and Bartolome R. Bordallo, who were just starting to build the crypto copy trading platform Zignaly as a way to help retail investors learn how to execute more advanced trading strategies from successful traders.

“So I closed my fund management firm,” Gadit said. “I took all the budgeted funds out of there and I said ‘listen, guys, let’s put it here, let’s do it together’.”

Mimic the trading strategies of advanced traders

Three years later, Zignaly has grown into a copy trading platform with 4 billion in trading volume and 430,000 users. It also attracted $120 million in assets managed by nearly 370 traders and fund managers, Gadit said.

The platform’s top 20 traders, who have been active for at least one year, have averaged more than 270% in annual profits, according to the firm, which tracks the traders’ returns via linked exchange data. Traders’ funds are still secured at the exchange level.

For example, the most successful trader on the site appears to have achieved a total return of 1,051.93% since May 2021 and attracted 275 copycats.

While the traders on the platform are pseudonymous, Gadit said they all have to go through a strict verification process that includes a “know your customer” procedure and a one-month screening period.

“If things are against the guidelines, we have the right to liquidate service and actually distribute the funds back to the users,” he said. “We want to make sure that user interests are aligned.”

Zignaly, which recently raised $50 million from the $3.4 billion alternative investment group Global Emerging Markets, has also expanded beyond copy trading.

In addition to imitating the trading strategies of advanced traders, novice users can invest alongside successful investors as part of a profit sharing program. Additionally, users can also participate in a game program where they can stake the platform’s native ZIG token to earn passive income. To be sure, the token has fallen 15.9% in the past month, according to CoinGecko data.

Bitcoin May Reach Another High, 4 Token Choices

After a whirlwind quarter that saw bitcoin tumble to as low as $32,000, the largest cryptocurrency traded above $44,000 in the first three months of 2022. Bitcoin was changing hands at nearly $46,000 as of Tuesday afternoon, per CoinGecko Price.

That’s a good sign, according to Gadit, who uses both technical and fundamental analysis to inform his outlook on the prices of major cryptocurrencies.

Fundamentally, a strong quarterly finish amid a host of macro headwinds underscores the asset’s resilience, aiding the continued adoption of cryptocurrencies by institutional investors and sovereign nations.

Just this week, the UK government announced plans to become a “global crypto-asset technology hub” while asking the country’s Royal Mint to create a non-flippable token to be issued this summer.

Technically, if bitcoin can maintain the trading range between $42,000 and $44,000, then there is a “strong probability” that the digital currency will reach another all-time high in the next three to six months, in his opinion.

Gadit also looks at the bitcoin dominance index and altcoin market cap. While there haven’t been too many clear signs of strength in the recent altcoin rally, he believes the consolidation in bitcoin could lead to a broader, albeit more volatile, upward move in those big cap tokens like ethereum.

For his personal portfolio, he is “betting heavily” on four altcoins, among others. These include exchange tokens BNB (BNB) and FTX token (FTT) as well as layer-one blockchains solana (SOL) and syscoin (SYS).

He especially likes BNB and FTT because they are the native tokens of two of the biggest crypto exchanges – Binance and FTX.

“They are businesses that generate income,” Gadit said. “People don’t appreciate enough the fact that revenue-generating businesses can survive bear markets and thrive in bull markets.”

The SOL token is up 446.5% over the past year, even after recent sharp declines. Trading at $0.672447 as of Tuesday afternoon, the SYS token is up 89.5% over the past year, according to CoinGecko data.