7 Altcoins to Watch Out for, 3 Investment Tips

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Robert Materazzi heads Lukka, a crypto data and software specialist. He said he was keeping a close eye on 7 altcoins at the moment, including the ether, the solana and the cardano ada token. Materazzi shared the crypto investing advice he gave to his parents and relatives.

Robert Materazzi remembers when, last fall, he realized that traditional investors were starting to invest their money in cryptocurrencies.

“I always joke that when my mom bought a crypto, I knew it hit the general public,” he told Insider. “Now my parents and all my relatives own it.”

Materazzi is the Managing Director of Lukka, a data and software provider that works with more than 200 crypto funds, as well as S&P Dow Jones, Deloitte and Third Point. In 2018, he joined the accounting firm PwC.

“It was probably a little uncomfortable at first, but I’m saying it in a good way,” said Materazzi, when asked about his transition from a traditional financial institution to a start-up. “There is so much uncertainty, but it is very rewarding to be part of an organization that is growing as quickly as Lukka.”

Lukka helps traditional financiers and local businesses accurately assess and report their crypto holdings. This means that they support over 9,000 crypto assets, including a significant number of booming altcoins.

Materazzi said that altcoins – digital currencies that are not bitcoins – could benefit from growing institutional investment in crypto, and ignored concerns about falling prices early in the summer.

“I think the drop was really based on social media,” he said. “There is a huge learning curve to getting into crypto, and investors are making decisions in very unconventional ways.”

“We are now seeing a correction until the prices move anyway,” he added.

Like many in the crypto world, Materazzi is bullish on the ether. He said Ethereum’s coin would benefit from recent improvement protocols, as prices surpass $ 3,000 for the second time.

“Eighteen months ago, the ether cost $ 128, now it’s $ 3,000,” he said. “Compared to traditional markets, these long-term numbers speak for themselves.”

Materazzi pointed out that the ada token of solana and cardano were two other altcoins that have seen recent success. Both have soared over the past month, with Solana rising from $ 38 to an all-time high of $ 116, and ada recently surpassing $ 3 for the first time.

He said he also monitors Ghosts, Chain Links, and GraphQL, due to the similarities of these platform-based pieces to the Aether and their role in DeFi.

“The coins that support decentralized finance are the ones I watch the most,” he said. “Phantom, chainlink, and graphQL all have more interesting use cases than just storing value.”

Materazzi is also interested in stablecoins, especially USD coins. A stablecoin is a cryptocurrency that uses a reserve asset to provide greater price stability. For example, the USD Coin is pegged to the dollar.

“USD Coin really strikes me as a company that does something responsibly even when there is a lack of guidelines and rules in certain areas,” said Materazzi. “It helps legitimize a stablecoin that will boost a ton of momentum among individual and institutional investors.”

“Stables aren’t that exciting, but the returns people get from them are pretty attractive.”

Materazzi also passed on the 3 tips he gave to his parents and relatives when they first thought about investing in crypto.

“The first thing I would tell them to do is buy a password manager and familiarize themselves with its use,” he said. “It’s horrible when a new investor underestimates the technical processes around crypto – a chain is only as strong as its weakest link.”

With this equipment purchased, Materazzi said retail investors should then look to familiarize themselves with crypto exchanges.

“Sign up for one of the simpler exchanges like Kraken, it’s very easy to sign up,” he said. “Play with an amount that you are willing to lose, so that you can experience some of the decentralized trading. “

Finally, Materazzi said investors need to figure out for themselves what level of risk they are comfortable with.

“I tell my parents not to go crazy, buy safe assets with the majority of their wallets and keep them,” he said. “It’s definitely a long strategy.”

“With an amount you’re willing to lose, you can try other coins – but count on the risk of losing that money,” he added.

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