A wonderful addition to a classic cryptocurrency portfolio will be investments in the developing DeFi sector or NFT tokens:
DeFi is a decentralized financial system, an alternative to the banking sector. Large decentralized projects, such as the Uniswap exchange, issue their own tokens that can be invested in;
NFTs are non-fungible tokens that have launched a wave of digital art. Many famous personalities, artists, and large companies release their collections. The growth in their value can reach hundreds of percent in a short period.
How much can you earn?
It depends on the cryptocurrency rate. During a bull market, the price of popular DeFi platform tokens has increased several times. Some of them have grown by several thousand percent in just a month. For example, the Yearn.Finance (YFI) token rose in price by more than 30,000%, and for some time its rate even exceeded that of Bitcoin.
Let's calculate how much your capital would have increased if you had invested $10,000 in the MKR token at the beginning of 2023. At that time, its rate was $510, and by January 1, 2024, it was $2,266. ($10,000/$510) * $2,266 – $10,000 = $34,431
Calculating the profit from NFTs is more complicated since each token or collection has its own characteristics. It is worth noting that the most expensive NFT was sold for $91.8 million.
A great addition to a classic cryptocurrency portfolio will be investments in the developing DeFi sector or NFT tokens:
