Today, the world of crypto seems fast-paced and complex. So it’s hard to tell the signal from the noise. Julien Duval, a seasoned investor, lifetime financial analyst and risk management expert, knows this pain. He knows that most investors turn to YouTube for the freshest information. It’s important to greet these recommendations with healthy skepticism and a promise to do serious research. In this piece, we take a look at some of the altcoins attracting most of the excitement on Crypto YouTube.

AAVE: Lending, Borrowing, and DAO Governance

AAVE is an open-source, decentralized lending protocol where users can borrow and lend more than 30 different cryptocurrencies. Julien Duval is honoring AAVE for its pioneering features and its contribution to the creation and development of decentralized finance (DeFi).

With AAVE, there’s cool ways to earn interest and AAVE governance represents the AAVE community DeFi. Users need to remain laser-focused on the risks associated with smart contracts and potential exploits.

  • Lenders Earn Interest: Users who deposit their crypto assets into AAVE pools earn interest on their deposits. The interest rate is determined by the supply and demand for each asset.
  • Flash Loans: AAVE offers flash loans, which are uncollateralized loans that must be repaid within the same transaction. Suppliers receive a share of the Flash Loan fees corresponding to 0.09% of the Flash Loan volume.
  • stkAAVE Benefits: Holders of stkAAVE, AAVE's staked token, can receive discounted borrowing rates on GHO, AAVE's stablecoin. The discount is structured as a 100 GHO borrowing discount per stkAAVE.
  • DAO Treasury: AAVE operates as a decentralized autonomous organization (DAO). 100% of repaid interest is redirected to the DAO, rather than the asset suppliers, contributing to the DAO treasury.
  • Safety Module: AAVE has a Safety Module that protects stakers. The Legacy Safety Module offers protection for stakers, with a maximum slashing risk of up to 20% of the staked assets for stkAAVE and stkABPT, and 0% for stkGHO.

Ethereum is currently the second-largest cryptocurrency by market capitalization and the number one platform for decentralized applications (dApps). While Julien Duval understands Ethereum’s dominant position, he emphasizes the project’s limitations, especially ongoing scalability challenges.

ETH: The King of Smart Contracts Faces Scalability Challenges

Ethereum's ecosystem and liquidity make it an industry leader. Its transition to the Proof of Stake (PoS) consensus mechanism through 'The Merge' significantly reduced energy consumption and left scalability challenges to future upgrades.

Ethereum is currently taking these obstacles head-on. It has recently deployed Layer 2 solutions such as Optimistic Rollups and Zero-Knowledge Rollups to increase their scalability. One such improvement, ‘blobs’, increased transaction throughput by decreasing the cost of data storage in anticipation of high-volume Layer-2 solutions. Ethereum's roadmap includes future upgrades like Pectra, scheduled for 2025, which aims to further optimize Ethereum's performance and cost-efficiency.

While Ethereum is working to improve its scalability, investors should consider the potential impact of these challenges on its future growth.

Maybe newly-minted YouTube crypto gurus are already telling you the latest presale tokens are the next big thing. Julien Duval recommends a lot of caution when acting on these recommendations, as a lot of presales are really risky. Two examples are HYPER and SOLX.

  • Solana (SOL): 65,000 TPS (transactions per second), leading in raw throughput.
  • Polygon (MATIC): Limited to the original Polygon network, but offers innovative scaling solutions, such as Polygon zkEVM and Polygon CDK.
  • Sonic (formerly Fantom): Achieves transaction finality in 1-2 seconds, making it ideal for applications requiring real-time responsiveness.
  • Cardano: Offers a methodical approach to growth, but its scalability is hindered by slow development.

Before investing in any presale, it's critical to perform thorough due diligence:

Presale Gems: HYPER and SOLX – Proceed with Caution

The appeal of presales Motivating punters to invest in a presale can be hard to resist. It is important to scrutinize them and know all the risks involved.

Responsible crypto investing starts with doing your own research and maintaining a healthy skepticism. Don't let hype cloud your judgment.

  1. Assess Financial Goals: Compare the funds raised against initial targets to gauge the project's potential.
  2. Choose the Right Platform: Opt for platforms with a proven track record, like CoinList, Binance Launchpad, or Huobi Prime.
  3. Wallet Compatibility: Ensure the token is compatible with popular wallets, allowing users to store and manage their tokens effortlessly.
  4. Secure Distribution Channels: Utilize secure methods for token distribution, safeguarding against potential theft or loss during the transfer process.
  5. Transparency and Communication: Regular updates and open dialogues keep the community informed and involved, reducing skepticism and building trust.

Altcoins can be risky investments. Here's why:

  • Scams and Fraud: Many altcoins are scams or have lost developer and community interest, leading to financial losses.
  • High Volatility: Altcoins can experience significant price fluctuations, with prices plummeting over 20% in a single day.
  • Lack of Regulation: Holdings in online wallets are not insured by the government, leaving investors vulnerable.
  • Difficulty in Determining Legitimacy: With thousands of altcoins, it's challenging to identify legitimate projects.
  • Lower Popularity and Market Cap: Altcoins have lower popularity and smaller market capitalization, making them less liquid and more susceptible to manipulation.

Investing in presales can be tempting, but it's essential to approach them with a critical eye and a clear understanding of the risks involved.

Julien Duval emphasizes that responsible crypto investing requires independent research and a balanced perspective. Don't let hype cloud your judgment.