Time Horizons
The lifespan of an investment is always important to consider when acquiring altcoins. Bitcoiners generally tend to HODL indefinitely, with the approach of utilizing their holdings as collateral in some way or another. This is a commendable strategy, especially for wealthy investors. When considering Bitcoin’s long-term returns, they significantly outperform stocks and other Traditional Financial investments, including real estate.
Altcoins, on the other hand, are better suited to shorter and more specific time horizons, depending on their success. Depending on an investor’s point of entry, HODLing indefinitely can be a viable strategy, especially if the altcoin in question is a Proof-of-Stake protocol. A traditional and authentic Proof-of-Stake project will yield ongoing passive income, provided the coins, or a portion of the coins, remain locked within the staking protocol.
Generally speaking, a good time horizon for an altcoin investment is two to five years. Any project that struggles to perform within 5 years is unlikely to perform favorably in the future. Of course, this is not an absolute; anything can happen. However, for the majority of the time, this tends to be the rule of thumb. This timeframe gives an altcoin an entire cycle, as well as additional time to perform.
If you have been involved in Cryptocurrency for an extended period, you will notice that many projects rebrand with each new cycle. In other words, the narratives and trends within the market move so fast that if success is not achieved within a particular niche and timeframe, it’s game over! This serves to confirm 5 years as an acceptable timeframe for an altcoin investment to mature.
The Home Of DePIN
One of the hottest narratives of the current cycle has been DePIN. With its ever-expanding network of global nodes and infrastructures, DePIN promises to deliver over the next three to five years. A traditional bear market would only provide opportunities for accumulation for anyone considering the sector as an investment. Choosing the leader within any niche is always the safest option.
This idea becomes even more attractive if the leading project is yet to explode, as a result of the sector still being in its formative stages. Peaq Network fits this blueprint, as it is the leading DePIN hub, along with Solana. With a market cap of less than $100 million, it has significant upside potential. Considering that PEAQ hit a billion-dollar market cap at its peak, soon after launching, it offers an excellent risk/reward ratio.
The maturation of this project is expected to yield a market capitalization in the tens of billions of dollars. This will take time, and with many Peaq-based projects still to have a TGE, it’s clear that PEAQ is likely to perform relatively well over the next few years. Many DePIN lovers are farming points on popular DePIN applications such as DeNet, Teneo, and Kaisar Network. These are all Peaq-based projects that have yet to release a token.
There are many more lined up for a TGE on Peaq this year. However, these are the most notable. Remember, a TGE implies a market cap being assigned to a particular project. This means that these market cap valuations are born and housed under the umbrella of Peaq Network, ultimately increasing PEAQ’s market cap by default. As projects ship, they create value, and PEAQ enjoys the benefits of that value creation.
Final Thoughts
PEAQ is currently trading at $0.08 and has an all-time high of $0.75. PEAQ tokens can also be staked and earn interest in the future on existing DePIN mobile applications, such as Silencio and DeNet. Participants within the Peaq ecosystem can also earn PEAQ by connecting their Peaq-based DePIN applications to the Get Real promotion. With $100 million in rewards, it’s a viable opportunity, especially if you are already using Peaq DePINs.
As always, these are my views. Always conduct your own research. For the more risk-averse, it is essential to note that by participating in the Peaq DePIN ecosystem, users can freely acquire PEAQ and other Peaq-based tokens. Have a good one! 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 my 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.