I discovered in the Binance 2023 review that AVAX and SOL were my favorite tokens in 2023.
The reason is obvious: I surfed the hype, and it worked since these both tokens significantly pumped.
However, I also believe that BTC and ETH have more long-term potential, as they are the most established and widely adopted cryptocurrencies in the market. BTC is the original and most trusted digital currency, while ETH is the backbone of the decentralized web and smart contracts. Both of them have strong network effects, security, and innovation that make them valuable and resilient.
Another important factor that could boost the value of BTC and ETH in 2024 is the approval of the first spot ETFs for these cryptocurrencies in the United States. A spot ETF is a fund that tracks the price of the underlying asset by holding it in a trust, rather than using futures contracts or other derivatives. This means that a spot ETF would increase the demand for BTC and ETH in the spot market, as well as provide a convenient and regulated way for investors to gain exposure to these digital assets. According to some analysts, the odds of a Bitcoin spot ETF approval are 95% by the end of 2024. Similarly, the chances of an Ethereum spot ETF approval are also high, as several fund managers have already applied for it. If these spot ETFs are approved, they could attract more institutional and retail investors to the crypto space, and potentially drive the prices of BTC and ETH to new highs.
Therefore, I diversified my portfolio and invested in both BTC and ETH, as well as AVAX and SOL, to balance my risk and reward. I think this is a smart strategy to enjoy the best of both worlds.
Disclaimer: This is not financial advice.
