The Hunt Continues
Last week I published my first altcoin micro-cap pick for the upcoming bull market. Today, I will be introducing my second layer 1 pick, Fuse Network. Whenever I am researching micro-caps I like to look at projects that are still sub $20 million. FUSE falls well within this categorization, as the current market cap is only $12 million. This is a great base to begin building a position, as the market cap is tiny, yet simultaneously has some level of stability.
Ultimately, Fuse provides the necessary infrastructure and ecosystem for WEB3-based payments, enabling the exchange of goods and services via the blockchain. Just as Hive has the HBD, Fuse has the Fuse Dollar. Defi lovers are likely to be familiar with Fuse. As a Layer 1 there are several DeFi opportunities available that can be explored on DefiLlama. However, the idea of impermanent loss is something that not all investors can stomach.
For such investors and FUSE holders, there is a single staking FUSE vault on Beefy Finance that is currently offering 13.73%, which is once again pretty decent. Despite Fuse not managing to garner any significant attention in 2021, it did however perform relatively well. FUSE is currently priced at $0.052 and reached an all-time of $2.13 in 2021. The market cap is currently $12 million and has room for significant upside.
I do somehow think that Fuse Network is likely to be a bit of a late bloomer. However, the upside potential looks rather promising, especially as it has previously extended beyond the $2 mark. FUSE is likely to be a good investment decision for a strategy that incorporates modest allocation over an extended period. In other words, a good dollar-cost-averaging investment.
Choosing to take on additional risk by staking FUSE could see your holdings grow by approximately 30% over the next two years or so. Averaging into a position over time will affect this figure. My previous altcoin pick from last week has already peaked at 700%, with much of this action taking place in three or four days. I don’t expect such a strong start for FUSE, but you never know.
For experienced investors and those who are willing to do a little research, this is where the money is made. If BTC did 700% off of the current levels, It would be trading at $232K! This is basically what has transpired in real terms with Taraxa over the past week. The risks are real… and the market could always be hit with a swan event at any time, but that’s the nature of the game.
I am fine with this risk profile, as I have a very structured approach that incorporates good risk management practices. Inexperienced investors should start with money they are prepared to lose. Like anything, there’s a learning curve. Meaningless capital now has value when you multiply it by 100X or even 500X. Just so you know, Solana generated a total return of 865X in the previous cycle.
Final Thoughts
Yes, there are significant gains to be made in the micro-cap market. However, investors shouldn’t allow this to blind them from the potential pitfalls. I will soon be publishing an article on how to effectively and safely build altcoin positions. If you appropriate disciplined practices that incorporate good risk management, potential losses are kept to a bare minimum.
Nothing in this article should be considered investment advice. This is where I share my journey and what I have learned over the years. As I mentioned, I don’t expect FUSE to start rallying like Taraxa. However, it makes for a good slow accumulation strategy. Once again, diversification is everything… even when it comes to investment strategies. See you next time. All the best!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Posted Using LeoFinance Alpha
Looks promising and luckily it is listed on gate.io.
Yeah, it does. Taraxa has been amazing though... it's currently headed towards an 800% surge in under a week!
I missed on Taraxa.
I am waiting for a meaningful correction to add to my stack. A long-term hold for me... 100X is minimum, in my opinion. It's already done 8X in a few days and the bull market hasn't even started.
I bought $40 worth of FUSE. Waiting for your next gem now.
FUSE is definitely a hodl to 2025. I doubt whether we will see Taraxa-like moves before the bull market kicks off. I won't mind if it's earlier though...
We'll see. Adding small positions on such low caps is definitely worth imo.
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