With Bitcoin (BTC-USD) surging by 60% for year-to-date 2023, there is excitement among the crypto community. In all probability, the extended crypto winter has ended, and there is a likelihood of Bitcoin trading at new highs in the next bull market. It’s still not too late to enter some of the best cryptos to buy for multibagger returns potential.
I believe that there are three major reasons to be bullish on Bitcoin. First, turbulence in the banking system has put digital assets in the limelight. Further, the Fed will likely pause on rate hikes, and I expect the dollar to weaken. As the dollar trends lower, risky asset classes trend higher.
Also, Bitcoin halving is due in 2024. Going by past instances, Bitcoin halving event is followed by a broad-based rally for cryptocurrencies. Of course, cryptocurrencies are a high-risk asset class, and I would allocate 5% to 10% of my portfolio toward crypto assets. However, even this allocation is meaningful considering several digital assets’ massive upside potential.
Let’s discuss three of the best cryptos to buy at current levels.
Bitcoin is the blue chip of cryptocurrencies and is poised for a big rally. Standard Chartered believes that the crypto can touch $100,000 by the end of 2024. There are others who believe that Bitcoin is likely to touch $180,000 in the next halving cycle.
Last month, the European Union lawmakers approved the world’s first comprehensive framework for crypto regulation. I believe regulatory frameworks will be in place globally in the next 24 months. This is positive for cryptocurrencies as investors will have clarity on the regulatory front. This gives higher confidence to invest.
It’s also worth noting that crypto is still at an early adoption stage. Some estimates suggest that cryptocurrencies can reach 1.2 billion users by 2025. Bitcoin has a limited supply, and as adoption increases, a tight supply scenario will ensure that the cryptocurrency trends higher.
Ethereum (ETH-USD) has been behind Bitcoin regarding returns for year-to-date 2023. However, I believe ETH will outperform in the next 24 months.
It’s worth noting that the Ethereum merge was completed in 2022. With the merger, Ethereum has transitioned from proof-of-work to proof-of-stake. One of the biggest benefits is a 99% reduction in energy costs for processing Ethereum transactions. Additionally, the transition allows stakers to earn interest, and the lock-up makes the supply scenario tighter.
Another big development on the cards is sharding. The number of transactions per second on Ethereum is still low. This challenge can be tackled with sharding, which splits databases to process them quickly.
Vitalik Buterin also mentioned last year that Ethereum development would be only 55% complete after the merge. The merge will be followed by “the surge, the verge, the purge, and the splurge.” As the roadmap progresses, Ethereum will likely trend higher.
I believe that Zilliqa (ZIL-USD) is a 10x coin with a 24-month investment horizon. I talked about sharding while discussing Ethereum. Zilliqa is the world’s first network that uses the concept of sharding.
Transactions are divided into smaller groups for parallel transaction verification. Zilliqa blockchain, therefore, has a faster transaction speed than Bitcoin and Ethereum. At the same time, the transaction cost is significantly lower. This makes Zilliqa attractive as a launchpad for dApps.
Besides the potential for multibagger returns, Zilliqa is also interesting from a staking perspective. The eco-friendly staking currently offers an APR of 13.02%.
It’s also worth noting that the Zilliqa coin skyrocketed last year as the project launched metaverse-as-a-service. With the metaverse expected to swell in size in the coming decade, Zilliqa has a strong platform for growth acceleration.
Overall, ZIL coin seems massively undervalued. Once the altcoin rally gains traction, multi-fold returns are due in the blink of an eye.
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.