If you’re looking for cryptos to watch before they surge, it is best to determine your risk appetite first. Cryptocurrencies are considered speculative assets, and you should avoid investing too much in this asset class, which is known to be riddled with scams and “rug pulls.”

Of course, I understand that many big-cap projects no longer have the same sort of potential for multi-bagger gains. At least not in the near term, due to their massive market capitalizations. Many investors like high-risk, high-reward investments with the potential for oversized gains, and the top cryptocurrencies only provide that opportunity if you start with significant capital.

Meanwhile, there are under-appreciated small-cap projects with plenty of upside potential to consider. Investors looking for the hottest coin in the next bull market need to keep their eyes peeled. Unfortunately, most small-cap projects will not go anywhere because they are scams or may be abandoned. That makes it challenging to search for cryptos to watch if you’re looking for the next hot coin.

To make that search easier, I have dug deep into three projects that I believe will likely be the next hot coin. Investors looking for high-risk, high-reward investments should consider these three cryptos to watch.

Emblem (EMB-USD)

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Emblem (EMB-USD) is among the riskiest cryptos you could invest in, but the project promises some interesting cutting-edge technology.

First, let’s explain what the project is. Overline is a blockchain protocol that aims to connect different blockchain networks to foster innovation by creating a multichain using a unique proof-of-work algorithm called “Proof-of-Distance.” Overline currently incorporates the Bitcoin (BTC-USD), Ethereum (ETH-USD), Waves (WAVES-USD), Neo (NEO-USD), and Lisk (LSK-USD) blockchain protocols. By connecting multiple blockchain networks, Overline helps organizations and individuals leverage the benefits of different blockchains from one single platform. Miners verify cross-chain transactions and earn Overline (OL-USD) as a reward. OL is then used as collateral for value transfers.

Emblems are the utility coins of the Overline network and increase the mining rewards of the miners who own them. EMB and OL represent a meso-economic theory in a decentralized blockchain protocol. EMB upgrades the network through mining rewards and large blocks, while OL powers all transactions within the network.

Overline’s most ambitious undertaking is that it wants to allow people to access the top blockchains without an internet or cellular connection. This “ōRouter” hardware could allow people to “Communicate with friends, access social media, and read the news even if the internet goes down,” and “trade crypto across chains without an intermediary.” Presales for this router are currently ongoing, but the developers have not provided a date for when it will be ready.

For such a small project, the successful development of this technology could instantly make Overline a blockbuster project. Unfortunately, I doubt things will go smoothly, as Overline developers have caused significant delays in the past.

Overall, this project is exceptionally high-risk and high-reward, and I would only consider investing in it if you are comfortable with the idea of losing all your money.

r/Cryptocurrency Moons (MOON-USD)

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r/Cryptocurrency Moons (MOON-USD) is unique in that it is tied to the activity of the popular subreddit r/Cryptocurrency, which has over 6.1 million members and is a hub for discussions about the latest developments in the crypto world. The more active the subreddit becomes, the higher the value of MOON will be. At least, that’s the primary valuation theory underpinning this token right now.

One key factor that sets r/Cryptocurrency Moons apart from other cryptocurrencies is its focus on community engagement and building a strong online presence. Reddit is among the most popular online communities, and this subreddit is the go-to place to discuss cryptocurrencies. This makes the MOON crypto a very well-known token despite its small size.

Furthermore, many exchanges and their support staff are active on the subreddit. The community could compel these exchanges to list the MOON token in the next bull run. This catalyst could significantly increase the project’s value.

Thus, if you’re looking for a cryptocurrency that has the potential to see significant near-term growth, MOON-USD is worth keeping an eye on. While it is still in its early stages, and it launched its mainnet just a couple of months ago, the catalyst I mentioned above could be the source of multi-bagger gains once the crypto market gains traction again.

XRP (XRP-USD)

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Ripple’s XRP (XRP-USD) aims to bridge the gap between traditional banking and blockchain technology. A number of major banks already use Ripple’s technology, although to a limited extent, making it a potentially attractive investment opportunity.

However, the ongoing lawsuit between parent company Ripple and the U.S. Securities and Exchange Commission (SEC) adds an element of risk to the investment. The outcome of this lawsuit will have significant implications for both Ripple and the broader cryptocurrency industry, as it will determine the classification of many cryptocurrencies as securities. Despite the uncertain outcome, Ripple has recently submitted its final argument, and its assertion of the SEC’s lack of evidence regarding the classification of XRP as an “investment contract” is compelling.

On the other hand, many countries are exploring the use of Central Bank Digital Currencies (CBDCs) to promote cashless transactions, and Ripple’s network is at the forefront of these initiatives. These positive developments, combined with partnerships with leading banks such as Bank of America (NYSE:BAC), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), and Deutsche Bank (NYSE:DB), suggest that XRP has significant long-term potential. The impact of the SEC lawsuit has suppressed XRP’s value, and a successful outcome could lead to a much higher market valuation for Ripple. Thus XRP is among the top cryptos to watch, particularly among those trading at less than $1 apiece.

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.