So the plan is to spend 2 BTC and buy 10 alt-coins. 0.2 Bitcoin each alt-coin. I am using binance to purchase these coins and i will add them in my portfolio tracker https://www.cryptocompare.com/portfolio/ . This place is very nice where to track your crypto portfolio from desktop. I do believe 99% alt-coins are scam and will fail in future, but there also will be some who will survive. The reason i think im going to succeed is not only that these projects are useful. But i only need 1 alt-coin to do 10x in bull market against btc and the rest can fail to brake even.

My top 10 alt-coins purchased and the reasons behind it :

• Ethereum – By dapp platform stats Ethereum is winning every other gen2-gen3 blockchains which are Tron,Eos etc in every aspect. Built Dapps, new users,existing users,volume and so on. Users and developers are the main key for s block-chain project to succeed. Ethereum has issues yes, there is not much room to grow. But there is constant development going on to increase platforms usability. Another thing is DeFi (decentralized finance) which got very popular in 2019 . Which basically brings banking to block-chain. This new turn on Ethereum is gaining momentum and growing every day. This will be huge in my opinion in 2020.

• Chainlink – Chainlink is something unique. Currently Block-chains smart contracts cannot record data on them from outside world, they can do only on chain data. Which is timestamps,block numbers, transaction value. On their own they cannot listen to outside world which is called of chain data. But Chainlink fixes this issue, feeding this information trough decentralized oracles to smart contracts. It really made this utility token very popular in 2019, because of their massive partnership with google cloud. And on top of that they already have working product and it is been used by numerous crypto projects. It currently is looking the biggest contender to fix this issue what block chains has.

• Basic attention token ( BAT) – is solving Advertisers and Content creators as myself problem ,what we have currently. For example Google collects about 40-50% add revenue from YouTube adds. Basic attention token ( BAT) solves this issue with their Brave browser. Brave browser allows you to tip your favorite content creators and block companies which collects your privacy data. So how does it work , Advertiser purchases advertisement with BAT tokens which goes to users and content creators. You actually are getting paid to watch adds. So it disables the middle man like google in this case who is taking 50% cut. Technically if Brave browser platform grows, price should increase.
• Monero – Monero is a privacy coin. I do believe that privacy coins will be very demanded in future. As block-chains are getting bigger and bigger adoption, eventually governments will crack down on them. And will develop software which will allow them to trace and get user privacy data. This could happen already this year, as recent statements from EU leaders are they need more regulation on Crypto and block-chain. Monero is one of the oldest privacy coin out there. And these events around possibly could spike up Monero price. I don’t want to hype it to much, but privacy was one of the main feature why Bitcoin was invented.
• Neo – neo is 3rd generation blockchain similar as Ethereum. Neo comes out of China, which is one of the main reasons why im choosing this smart contract platform. Recent statement from Chinese president Xi Jinping that they have to adopt block-chain technology  in their country. This statement made me very bullish on NEO. 3rd generation block-chain platforms really will kick of in 2020, just because the possibilities can be developed on them. I don’t really think yet we have figured out what can be deployed on these platforms. We can see that as time goes by, new things are been figured out like DeFi, games, fundraising and many more. Also the price on NEO has drooped about 20x since all time high. And recent volume has been growing on NEO platform. So fingers cross, Neo going to bring us honey.
• Cosmos (ATOM)
• IOTA (MIOTA)
• Synthetix (SNX)
• Tezos (XTZ)
• Cardano (ADA)

I have gone trough these projects social media channels and looked how active is the community. GitHub, is there any active development on their platform. Also is there any fundamentals and working product behind it. These are the main reasons i have picked these coins for my challenge. This is not any financial advice, i’m just looking to do a challenge/research. Is this a way to increase bitcoin in bull market by buying alt-coins. I’m playing this safe and choosing the coins from top 50 in coin-market cup. Because i do believe if coin is valuable it should at-least have some value in bear market.

I have been talking about this few month ago, that i love Maker DAI stable coin which is decentralized on ethereum block chain. So it is in simple words CDP (collateralize dept position), where you lock up your Ethereum to receive DAI stable coin. So you can say that DAI token is backed up by real assets. New DAI are minted as more assets are locked up, currently in circulation there is 86 million DAI. Current most of the use cases for DAI are from traders, to leverage trading Ehtereum. For example  you can buy Ethereum then lockup into smart contract to get DAI, that DAI use for purchase more Ethereum and so on. This way you can long Ethereum with leverage.

With DAI all the DeFi kicked of and there is more and more platforms built every month. Best website to check is https://defipulse.com/ where you can track projects by their popularity.

Im not going to go trough all of them now, just the one currently i see most interesting. So the total value of assets locked up in these projects are 530 million usd and it is growing every day. So in in DeFi world you can Lend Crypto, borrow, leverage trading like dydx exchange where you can long or short eth against DAI, also decentralized asset exchange and payments.

The project what i want to talk about today is compound.finance , which is basically lending borrowing platform. There is 2 things you can do, you can lock up you assets to get more assets which is called Collateralize dept position. As a example i can give you, you want to buy mining rigs. And you have ethereum in your account ,but you don’t want to exchange it to your local currency cause you think value is quite low. You can now take a loan on based of your ethereum stack, use it for buying mining rigs, and from mining rigs profits payoff your debt position. At the en you will have your etherum and mining rigs. This is just one of the samples. There is many use cases and many of which are used in current financial world also with centralized collateralize dept.

And the other thing what you can do on Compound finance is lending and ear interest rate on your assets. The interest rates are quite attractive if you look at them. Probably the best interest rates are on stable coins like DAI, currently at 7.4% yearly which are paid out by every new block found. Where i don’t know any bank who will give you 7% on your investment accounts. This interest rate is fluctuating on depending how many DAI is borrowed from the total pool . At the moment of this post:

• total gross supply of the pool is 37.5 million DAI
• Gross borrow is 23.5 million DAI

This is not financial advice , but for testing these instruments im lending out 1000 DAI. Which is bringing me interest in DAI every few seconds as new Ethereum block crated. Currently 75 usd yearly, i know it doesnt look much.  But look if you have 100k DAI it is 7500 yearly and so on.

It is still very risky as smart contracts haven’t grown enough and there could be human errors where your funds could get lost. Like we have seen in past, with DAO hack in 2016. Basically a hacker found volubility in smart contract and drained over 3 million ethereum from it. which made ethereum split in 2 chains ETH and ETC. Also i did invest in this project, but if wast that significant amount, and anyways the funds where returned by hardfork.

If you havent heard about DeFi yet, i would suggest you to start with Maker DAO. Which is the biggest sample that decentralized finance works and we dont need banks anymore. We can start trusting smart contracts. It does have already more then 2million ETH locked up as collateralize dept. This is already 1% of eth locked up in smart contract, think about it whats going to happen to ethereum price when this gains more popularity.