3 Altcoins to Buy Before They Rally 100% This Year

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  • These are the altcoins to buy for at least 100% returns in 2023.
  • Ethereum (ETH-USD): The next-best crypto after Bitcoin with a positive outlook after the merge.
  • Binance Coin (BNB-USD): Among the fundamentally strong crypto exchanges.
  • Zilliqa (ZIL-USD): Significantly lower transaction cost compared to Ethereum plus an entry into metaverse.
altcoins to buy - 3 Altcoins to Buy Before They Rally 100% This Year

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There finally seems to be some indication the extended crypto winter is over. Bitcoin (BTC-USD) has surged by nearly 40% in the last month. In general, smaller cryptos surge higher with a lag, so it might be a good time to look at some altcoins to buy for 2023.

Let’s first discuss the renewed optimism in the cryptocurrency space and the reasons. First and foremost, cryptocurrencies were oversold and the downside was capped when Bitcoin traded around $16,000.

Furthermore, the weakening of the dollar is an indication of easing global liquidity. In such a scenario, risky asset classes tend to perform. If policies become expansionary due to a recession, cryptocurrencies will continue to trend higher.

Big crashes also weed out the weaker players. Several crypto projects have collapsed in the bear market and the industry has emerged stronger from the crisis. Investors still need to be cautious and selectively invest in altcoins.

On a conservative basis, I expect 100% returns in 2023 from these altcoins to buy.

Ticker Crypto Price
ETH-USD Ethereum $1,582.82
BNB-USD Binance Coin $309.38
ZIL-USD Zilliqa $0.03

Ethereum (ETH-USD)

A concept image of mining an Ethereum (ETH) token.
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For investors who are bullish on cryptocurrencies, Bitcoin and Ethereum (ETH-USD) should be an integral part of their portfolio. In the last month, the returns for these two major cryptos have been in sync. However, I believe Ethereum will outperform Bitcoin in the long term.

In a recent survey, 60% of the 43 fund managers surveyed believed Ethereum has the most promising outlook for 2023. One reason is the completion of the Ethereum merge in September 2022. This transition from proof-of-work to a proof-of-stake protocol has yet to be discounted in Ethereum prices.

Potential lowering of transaction costs coupled with lower energy consumption are likely to be gamechangers. Another catalyst is achieving scalability with higher transaction speed and throughput. If this occurs, Ethereum is positioned to benefit from metaverse growth in the coming years.

Overall, developments have been relatively slow for Ethereum. However, the project is moving in the right direction and the outlook for 2023 is bullish.

Binance Coin (BNB-USD)

A Binance Coin sits in front of trading charts. Binance price predictions
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The collapse of FTX was the worst time for crypto exchanges. Binance seems to be among the exchanges that can potentially survive the crypto winter and emerge stronger. Binance Coin (BNB-USD) therefore looks like an attractive name among altcoins to buy. In the last month, the coin has rallied by 25%. I expect this upside to sustain as trading volumes increase on a relative basis.

An important point to note is that Binance has been pursuing expansion even amidst the market turmoil. Towards the end of 2022, Binance acquired a crypto exchange registered in Japan. It has already been boosting its presence in the Middle East. These growth initiatives will yield results once there is a meaningful recovery in crypto trading and investing activity.

Binance Labs is another interesting division. It’s an initiative by Binance to invest in crypto startups. By supporting innovative projects, Binance is securing early-stage investment that can potentially deliver multibagger returns.

Zilliqa (ZIL-USD)

The Zilliqa (ZIL) crypto logo in front of a trading chart illustration.
Source: Shutterstock

Among fundamentally strong altcoins to buy, I am bullish on Zilliqa (ZIL-USD). As the project ecosystem gets bigger, ZIL is poised for multibagger returns.

It’s worth noting in February 2022, ZIL surged from four cents to highs of 18 cents within two months. This surge was on the back of the launch of its metaverse services. Of course, the downside was sharp and in sync with broad market sentiments. A similar surge is likely if market sentiments remain bullish. It’s worth mentioning the long-term outlook remains positive for the metaverse market.

While I am bullish on Ethereum, I must mention Zilliqa has a robust transaction speed. A key reason is the use of sharding. Transactions are grouped into smaller parts for parallel transaction verification. At the same time, Zilliqa’s transaction fee is 227 times lower than Ethereum when it comes to native token transfers. Even for fungible token transfers, the fee is 60 times lower than Ethereum.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/01/3-altcoins-to-buy-before-they-rally-100-this-year/.

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