First, what is meant by Tier?
When classifying digital assets, a tier system is used to categorize projects based on factors such as:
· Market size and liquidity
· Strength of fundamentals and technology
· Level of risk and expected return
· Project history and its credibility
🥇 Major projects with very strong fundamentals (Tier 1)
These are established assets with a long history, and are considered the most relatively safe in the volatile market.
While major currencies like BTC and ETH remain the foundation of any smart portfolio, real growth opportunities often lie in Tier 2 and Tier 3 projects!
🥈 Strong foundational tier projects (Tier 2)
These are established projects in their fields and possess clear technology and a strong team.
1. $ADA (Cardano): A smart contract platform focusing on academic research and security. Its team is strong with an academic background, and it has a loyal community.
2. SOL (Solana): A smart contract platform that competes with Ethereum with high transaction speeds and low costs. Despite some network outages in the past, it has demonstrated resilience and a strong environment.
3. $ARB (Arbitrum): A Layer 2 solution for the Ethereum network. It aims to increase transaction speed and reduce costs. Its technology is essential for scaling Ethereum, and its team is well-known.
4. $LTC (Litecoin): One of the oldest currencies, it is a proven and reliable currency focused on payments, and while Bitcoin is referred to as gold, LTC is referred to as silver.
🥉 Promising projects in niche areas (Tier 3)
These are assets that operate in important growth areas and have clear benefits, but they may be more volatile.
1. $FET (Artificial Superintelligence Alliance): Works in the field of artificial intelligence, which is one of the most important market trends. The benefits are clear and the partnerships are strong.
2. $LINK (Chainlink): A leading oracle network. It connects real-world data to Blockchains. Essential for most decentralized finance, and its utility is vital.
3. MATIC (Polygon Ecosystem Token - $POL): A Layer 2 solution and development of the Ethereum environment. It has one of the most active ecosystems and its adoption is widespread.
💎 Smart investment advice:
1. Focus on Tier 1 and Tier 2: These are the foundation of your portfolio that it should be built upon. They are the most resilient during storms.
2. Use the "dollar-cost averaging" (DCA) strategy: Given the volatility, instead of investing a large amount at once, buy small amounts at regular intervals to achieve a good average purchase price.
3. Rebalance your portfolio: If the share of a small asset (like commemorative coins) becomes too large, consider taking some profits and reinvesting them in BTC or ETH or BNB.
4. Be cautious with "alpha assets" (Alpha): Many assets (like Jager, BOB, AKE, etc.) are small or new projects with high liquidity and risks. Do not allocate a large percentage of capital to them.
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