Most people know that the market is heating up, as such, they would want to make certain that they allocate their funds in a proper manner. If one wanted to make their life a bit easier, they would hold on to coins that would have wide exposure to the entire industry.
Coins that have had wide exposure in the past would be bitcoin and Ethereum.
We can still argue that bitcoin and Ethereum have large exposure to the entire digital asset space, but we also know that a few more tokens may also meet these criteria.
These tokens are the ones presented by exchanges, especially large exchanges like Binance.
If you’re looking for wide digital asset exposure and already have a little bit of bitcoin in your portfolio, let’s take a look at why you may want to hold ETH or BNB.
ETH had its glory days. It saw a rise to $1,318.89 before gradually declining over the course of 2018.
Now, the question we want to ask today is, did Ethereum peak and will it ever experience its previous ATH’s?
We want to know if the glory days are gone and if they will ever come back.
But we should probably understand why ETH rose in the first place.
The first reason is that it had a brand, it was a currency that people knew. Vitalik published the Ethereum whitepaper in the latter half of 2013 and launched the ICO in the latter half of 2014.
Ethereum would slowly build a big community over the next couple of years while building out their platform as well.
The Ethereum community would see a run up in price over the next couple of years.
The Ethereum mission is compelling, build decentralized applications, it brings out a wide variety of applications and possibilities.
This means that Ethereum had several things going for it, being one of the first, being innovative, building a community and releasing a platform for creatives with continuous updates over time.
One key contributor to its rise in the past bull run was the fact that it allowed others to create and deploy their own tokens and projects on top of its platform.
Yet, things are different now.
ETH is likely to not host more ICO’s as IEO’s are now the new trend, as such, unless games and other applications that use Ethereum takes off, Ethereum should not take off in an excessive manner.
Ethereum should be buoyed by the rise of bitcoin but may not see a significant price increase.
One Key Point: Ethereum may also be useful as collateral for DAI (which gives it further value) to help traders borrow and move funds around.
That brings us to Binance.
Binance is one exchange that people trust for a variety of reasons, let’s go through a couple of them.
- It seems to be one of least shady exchanges within the cryptocurrency sector
- It is intuitive and simpler to sign up for Binance
- The exchange does seem to be more transparent
- Binance continued to build throughout the bear market and still stayed true to users
- People believe that funds on Binance are SAFU.
- The BNB token stays true to its purpose and is useful in more ways than one.
One of the most prominent uses for crypto is speculation. Binance and it’s token is well positioned to capitalize on this market.
Surprisingly, Binance has already soared past its past all-time high, it was one of the digital assets that trended upward while most stayed flat. The BNB token is still staying near its highs. BNB would likely trend up if we continue to see this bull market move forward.
Binance is likely to host more initial exchange offerings throughout the course of this year. It is expected that this would drive some of the same mechanics that were present with Ethereum in 2017.
Cryptocurrency enthusiasts will certainly want to participate in IEO’s if they want to increase their earnings and so BNB should be in high demand.
Key Point: Speculators who want to take part in Binance initial exchange offerings must hold Binance.
At the end of the day, the decision to purchase Binance or Ethereum is up to you. You would judge your decision on which one would have more use over the course of the year. Always do your due diligence and have fun in this crypto world.