🧠 An investors guide: our top 7 coins

September 23, 2022

Seedphrase Daily 👋  We are NOT financial advisors. But we are your dawgs that put in hours of blood, sweat and tears researching every day to cut thru the noise to make web3 EASY. You asked about the top 7 coins, now we answer.

Today's Agenda 📓: 

  • 🧠 Investor's guide to crypto bear

  • 🌱 NewSeeds

  • 🤭 Fun Friday

  • ⏮ Weekly Wrap

  • 😳 Meme of the Week

How to survive the bear: 

A seasoned investor knows bear markets are ALL about managing risk.

Bear markets, especially this one, are volatile and bloody. This is war. The easiest way to die is to have the same strategy that you had in a bull.

Now is the time to pay attention to coins with mid to large size caps, lots of VC backing, utility, and innovation. Aka: QUALITY. 

Next week, we'll reveal 7 small cap coins we're eyeing, but those are MUCH riskier. So let's start you off strong, before we venture into the unknown.

Here are 7 coins we have high conviction in and why. 👇

💵 Bitcoin

  • Market dominance: Totals 43% of the market with the highest market cap at $364.81B. BTC has been dictating the market for years. As it goes up or down, altcoins follow behind it.

  • Store of value: an asset that maintains value rather than depreciates. Since its launch, BTC has gone up almost 215,000%. To put that in perspective, the S&P's average annual return has been around 14.7%.

  • Digital Gold: Bitcoin is a new form of payment and money. It is a financial innovation that utilizes blockchain tech.

  • Unbreakable: Phenomenal piece of code that has never been hacked. Once crypto gets adopted by the masses, BTC will likely be at the forefront.

Currently, it's the king and has always been the king, with no other coin outperforming it yet. 

💵 Ethereum

  • Massive ecosystem: DeFi, NFTs, and Dapps (decentralized apps) are being built on a large scale with good security.

  • Developers building: Dapps and smart contracts are being developed by many more people compared to other L1s with smart contract capabilities.

  • Biggest NFTs. Most NFT projects that are popular and currently successful are on ETH, like Bored Ape Yacht Club, CryptoPunks and Pudgy Penguins.

  • Switched to PoS: Making it significantly more energy efficient and cutting the world's energy consumption by 0.2%. This makes it prime for institutional adoption. Oh and, you're welcome tree huggers.

  • Cash Flow: It has plenty of liquidity in its reserves to continue building, plus the network makes a bunch of money via gas fees and DeFi. 

  • Vitalik: Period.

💵  Solana

  • NFT Ecosystem: Solana NFTs are becoming increasingly popular with Degods and y00ts. People realize that Solana is more optimized for web3.

  • Cheaper: Gas fees are meagre (less than $0.01) and extremely fast.

  • Energy efficient: Each transaction is less energy than a Google search. 

  • Explosive growth: There was a Defi summer for ETH in 2020. We believe there will be a Defi explosion for SOL. With many developers building on the Solana ecosystem, Dapps are getting created in large amounts.

  • VC funding: Allows them to continue to build regardless of market conditions.

Also, 

Stholana sthummer 

💵 Polygon

  • Solves problems: It resolves the scaling issues of ETH. It's built on a winning product (ETH), uses the security of ETH, but allows for much quicker transactions and lower gas fees.

  • Mainstream endorsement: HUGE companies chose Polygon for their NFT projects and launch into crypto usage (Coca-Cola, Disney, Starbucks, Reddit).

  • VC funding: Allows them to continue to build regardless of market conditions.

They are leading the front of scaling ETH and beating out the competition trying to achieve the same.

Your average Joe would prefer to use Polygon as it's cheaper and connected to a bunch of mainstream web2 sharks.

💵 Chainlink

  • Interoperability: They are building the ability to have cross-chain smart contracts. With Chainlink, a smart contract made on Solana can also be compatible with ETH's chain. 🤯

  • Building token bridges to allow seamless conversion of different crypto's.

  • Building a massive data ecosystem that will be open source and authenticated by API.

  • Captured billions in the market: Made tens of billions of dollars within the DeFi ecosystem by connecting hybrid smart contracts with high-quality data and off-chain computation. There is strong market demand for this product.

  • Smart contract data: Accessible to help write future smart contracts and will be able to allow businesses to conduct transactions securely.

  • Staking: will be offered soon, and the rewards will be in the form of fees from oracle transactions of integrating smart contracts among different L1's.

Chainlink is working on some pretty cool stuff. IMO it's heavily undervalued and will be here come the next bull run.

💵 BNB

  • The biggest crypto exchange: Binance is the world's largest and most trust centralized crypto exchange. They are actively building partnerships in many countries to garner legal legitimacy of crypto. BNB is their coin. Their baby. Their brainchild.

  • BNB ecosystem: BNB allows entry into Binance's massive ecosystem. From DeFi, staking, and trading shows a vote of confidence that Binance will be around. They also decrease trading fees when holding, so you can save 25% on all spot and margin trading fees.

  • Company Growth: While other exchanges are doing layoffs, Binance plans to hire more people through the end of the year.

  • Public Face: CZ is active in the community, constantly giving updates on Twitter and other socials, which gives confidence to buyers.

We are betting on the exchange, which shows no sign of going down anytime soon. 

💵 Ripple (XRP)

  • Technology: extremely fast, secure, and can do roughly 1,500 TPS.

  • Mainstream financial focus: XRP is focused on being used by companies to be integrated to improve the current economic systems. Banks will look to use Ripple as a payment service because it's literally designed for them. PNC bank was the first US bank to use the Ripple payment network. 

  • Cult following: It's tough to shake those mofos. It's stayed a top 10 coin by market capitalization, and people are still ride or die through the lawsuit it has with the SEC right now.

When and if they make it out of the lawsuit, XRP will likely transform the payment system of banks and create a much faster network than the ones currently in place.

And subsequently, XRP will see a pump.

Bang. That's 7. 🔫

Did we miss any? Reply and let us know!

These are Seedphrase's top 7 conviction plays for what will survive the bear. We've seen this down cycle before, and we know most coins will get wrekt. 

To increase our chances of success through the bear, and thrive in the next bull, we're stacking our bets on winning horses. 

Make sure to DYOR and draw your own conclusions so you can take action.

And if you have any other questions you've been scratching your head on, are too shy to ask, or just cool shit you'd want to share, reply to this email. Promise we'll see it!

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Other short stories from this week.

Here are some more topics we went in-depth on. Make sure you catch up, so you’re ready for Monday!

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research

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