2022 was an awful year for crypto investors. Unfortunately, there aren’t many investors looking for cryptos to buy in 2023. The ultra-loose monetary policy is long gone, and most cryptocurrency projects are finding it extraordinarily difficult to maintain their current price, let alone their uptrend. Nonetheless, there are still many projects that have good upside prospects. The crypto market is highly cyclical, and buying some of these projects right now could pay off in the long run, especially once the market turns a corner.
However, investors should also consider the risk-reward ratio they target when investing in crypto. A good rule of thumb is to put around 5% of your portfolio into highly speculative assets. While Bitcoin (BTC-USD) and Ethereum (ETH-USD) are solid long-term investments, their upside potential isn’t as great due to their high market capitalizations, and I don’t consider both of them as “highly speculative.” Almost everyone knows about the two big projects, and discussing them more in this article will be of little value.
Therefore, this article will feature the following five cryptos for investors looking for cryptos to buy with more upside potential. Naturally, this comes with more volatility, but these assets should fit the “highly speculative” criteria:
Cryptos to Buy: Qtum (QTUM-USD)
Qtum (QTUM-USD) deserves a much higher valuation due to its complexity and solutionist purpose. The project aims to combine the strengths of Bitcoin and Ethereum while addressing the problems on these blockchains. The most significant feature of the Qtum blockchain is that it allows “smart contracts to change the core parameters of the network such as block size and gas fees without ever needing to hard fork the blockchain.” This characteristic could boost the project’s value once it gains more recognition.
Moreover, the project could benefit disproportionately from the next crypto bull run for two reasons: One, its small market cap and cyclical nature. Two, the project could see more inflow of funds and developers as Bitcoin and Ethereum are heavily congested during such bull runs. The project’s flexibility regarding fees and support for various programming languages will also make it more appealing.
Cryptos to Buy: r/Cryptocurrency Moons (MOON-USD)
r/Cryptocurrency Moons (MOON-USD) are the community tokens for Reddit’s largest cryptocurrency subreddit. The token is supported by the subreddit’s growing members and will stay relevant despite its small size, as Reddit is among the most influential social media platforms.
On the contrary, the MOON token does not have developers and is entirely decentralized. Thus, this is not a utility token but rather an asset that relies primarily on crypto’s popularity. This token could surge once the crypto market turns a corner and the subreddit gains more activity. Most significantly, many big-name exchanges are active on the r/Cryptocurrency subreddit and are likely to list the token sometime in the future.
ALTAVA (TAVA-USD) is a project focusing on the metaverse and luxury non-fungible tokens. TAVA had a rough start in 2022 due to the broad-based decline in crypto-related assets last year, but there’s more to look forward to for this token. First, the TAVA token is resilient at its current valuation as all its cons are priced in. Moreover, Altava is an Asia-based company that is more resilient and less affected by the FTX crisis than most American projects. It is also a company with actual revenue. Altava is breaking even for 2022, which is rare for Web3 projects that usually burn capital and have zero revenue. The company also has partnerships with many blue-chip companies, which is another plus point.
Second, Meta Platforms (NASDAQ:META) has yet to give up on its metaverse segment and continues spending billions on marketing and developing the virtual world. If this does pay off in the long run, TAVA is set to be a major beneficiary.
Ripple’s XRP (XRP-USD) is among the high-risk, high-reward cryptos to buy ideas despite being among the market’s largest projects. Its blockchain technology is among the most successful and is among the rare few projects that managed to have a real-world impact. The company has partnered with 300+ financial institutions, including Bank of America (NYSE:BAC), Standard Chartered Bank (OTCMKTS:SCBFY), American Express (NYSE:AXP), and the Royal Bank of Canada (NYSE:RY).
In addition, Ripple is also the first choice for many countries that are considering central bank digital currencies (or CBDCs). Of course, one may think that such a project should be valued much higher. Why isn’t it, then? The biggest concern for Ripple is that it is under a Securities and Exchange Commission (or SEC) lawsuit. The SEC considers XRP as a security, and the ruling could have significant implications for the broader crypto market.
Conversely, Ripple has a strong case as XRP does not meet the definition of securities and has no investment contract, and the case is more in its favor. However, the SEC is a federal agency, which complicates the issue. If XRP does win the lawsuit, its upside could be massive.
Filecoin (FIL-USD) is a decentralized peer-to-peer storage system that could gain traction due to the fast-growing data center industry. The project offers can store data without a centralized authority and without any censorship for much lower costs than traditional data centers. Moreover, there’s no central server, so the project offers remarkable uptime.
I see the FIL token valued much more than it currently is in the future. As Data centers and cloud businesses continue to grow, the demand for FIL will too. Blockchain storage is still an up-and-coming industry; if it goes mainstream, Filecoin will likely be a multibagger investment. Thus, it is among the top cryptos to buy.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization of less than $100 million or trade with a volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Omor Ibne Ehsan did not have (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.