Bitcoin (CCC:BTC-USD) seems to be witnessing another strong wave of momentum. It would not be surprising if Bitcoin retests previous highs in the current rally. The rally in major cryptocurrencies also implies another good season for altcoins. As a result, here are several interesting cryptos to buy to benefit from the current momentum.
It’s worth noting that data from CoinGecko indicates that there are 9,712 listed coins in 508 exchanges. I would broadly classify these coins into two categories.
First, there are cryptocurrencies that are merely speculative in nature with no real use case. Of course, these cryptocurrencies have the potential to deliver multi-fold returns in a short time. As an example Shiba (CCC:SHIB-USD) recently surged by over 300% in the course of a week. But coins like SHIB don’t necessarily have staying power without practical use.
Second, there are cryptocurrencies that have strong use cases and are focused on real world application. A good example is Fetch.ai (CCC:FET-USD), which brings artificial intelligence to the crypto economy. These cryptocurrencies can be considered for the long-term. FET coin has surged by 1,300% in the last 12-months.
This column will focus on cryptos to buy that have strong use cases. Just like Bitcoin and Ethereum (CCC:ETH-USD), these cryptos can be considered as long-term investments.
Let’s talk about the use cases for these three cryptos to buy for the next altcoin rally.
- Akash Network (CCC:AKT-USD)
- InsurAce (CCC:INSUR-USD)
- Zignaly (CCC:ZIG-USD)
3 Cryptos to Buy: Akash Network (AKT-USD)
The global cloud computing market is on a high-growth trajectory. It’s expected that the cloud computing market size will reach $1.25 trillion by 2028. In the centralized cloud business, Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG, GOOGL) and Microsoft (NASDAQ:MSFT) are among the leaders.
Akash Network is in the decentralized space. The company claims to be the world’s first decentralized and open-source cloud. That makes AKT the first utility token that’s powering the open-source cloud. Currently, the token trades at a price of $3.04 with a market capitalization of $341 million.
It’s worth noting that most of the decentralized players are still using a centralized cloud network. It seems likely that there will be a gradual shift towards decentralized cloud.
A key reason is that the Akash Network is compatible with all existing cloud applications. Furthermore, Akash claims that using the decentralized cloud has a significant cost advantage over the centralized cloud.
Another point worth noting is that in the beginning of May 2021, Akash Network had 15 active deployments. The number of active deployments has increased to 477 as of Oct. 11. Clearly, the business seems to be gaining traction.
AKT coin therefore looks attractive among the top cryptos to buy. The non-speculative coin is likely to trend higher in the long-term.
InsurAce (INSUR-USD)
Another interesting crypto with a strong use case is InsurAce. As the name suggests, the company is a multi-chain decentralized insurance provider.
InsurAce provides some important data that makes adoption of decentralized insurance critical.
First and foremost, more than 60 protocols have been hacked in the past. This has resulted in $500 million in losses.
Furthermore, the total value locked in decentralized finance is $80 billion. However, only 2% of the total value is covered by insurance. As decentralized finance grows, there seems to be a big opportunity for InsurAce.
It’s worth noting that since its launch in April 2021, InsurAce has covered more than 70 protocols. One reason that has boosted growth and multiple partnerships is low cover premiums.
The INSUR token has been sideways in the past month. This seems like a good buying opportunity.
If we look at the roadmap for InsurAce, there seems to be another catalyst on the horizon. InsurAce seeks to “diversify the product line to cover more risk types, such as oracle malfunction, asset volatility.” This is likely to help in gaining further traction in terms of partnerships.
Overall, if the cryptocurrency market is here to stay, insurance will play an important part. With low penetration, InsurAce has ample room for growth.
3 Cryptos to Buy: Zignaly (ZIG-USD)
Global cryptocurrency adoption is happening at a rapid pace. It’s estimated that there are over 300 million crypto users globally. It also goes without saying that crypto users are primarily traders looking for some quick gains.
This makes Zignaly an interesting long-term bet. The trading platform is all about copy trading and profit sharing.
Copy trading comes at a monthly fee and allows investors choose from top-performing crypto traders and copy their trades. Zignaly also has a profit-sharing model that allows users to invest in top-performing traders under a profit-sharing agreement. Only a small percentage of the profit is taken as trading fees.
Clearly, Zignaly has a strong use case in a world where a significant number of crypto traders rely on recommendations. As of July 2021, Zignaly reported 86,000 users. Further, the company had a total trading volume of $3.3 billion.
It’s worth noting again that Bitcoin has been trending higher. Once altcoins also rally, Zignaly is likely to witness sustained growth in users and trading volumes. ZIG token is therefore worth considering among the top cryptos to buy with a strong use case.
On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
