Cryptocurrency, as an asset class, is back from the dead. Emerging from the crypt are these cryptos that have 3-bagger potential.
From an extended crypto winter to regulatory headwinds, crypto investors have seen the worst. Multiple scams in the industry did not help either. There is finally light at the end of the tunnel.
Bitcoin (BTC-USD) has been trending higher and there is already action in the altcoin space. Going by previous bull markets, the good times have just started for crypto assets. There are potential 3-bagger cryptos to buy with an investment horizon of 12 months.
Without doubt, the risk of exposure to cryptocurrencies is high. It’s more than a penny or a micro-cap stock. However, in the last bull market, several altcoins returned 10 times or 20 times at the blink of an eye. Therefore, some exposure to this asset class makes sense.
Also, within the cryptocurrency universe, there are relatively stable projects. My focus is on these ideas that are likely to surge higher this year. I have toned down my expectation and three times returns seem likely from a portfolio of these digital assets.
Let’s talk about the reasons to be bullish.
Bitcoin (BTC)
From current levels of $45,000, I believe that Bitcoin can triple by the end of the year. Going by previous bull market rallies, the target is not steep for the cryptocurrency. This is particularly true at a time when there are positive tailwinds for the cryptocurrency space.
First, the United States Securities and Exchange Commission “approved the listing and trading of a number of spot bitcoin exchange-traded product (ETP) shares.” The first day trading volume of U.S. Bitcoin ETFs was robust at $4.6 billion. This will potentially help Bitcoin gain broader acceptance as an investment and as demand increases, BTC is likely to surge higher.
Furthermore, Bitcoin halving is due this year. In all previous instances of halving, there has been a strong rally in the cryptocurrency. With positive market sentiments, I believe that the event would translate into a strong rally.
I must add that global central banks are likely to cut rates multiple times in 2024. With expansionary monetary policy, there is bound to be more speculation in risky asset classes. This will be positive for Bitcoin.
Zilliqa (ZIL)
Zilliqa (ZIL-USD) has been one of my long time favourite crypto. ZIL coin has however not participated in the current rally and has been flat in the last 12 months. I however believe that the coin is poised to skyrocket and once the uptrend commences, three times returns might sound conservative.
As an overview, Zilliqa is the world’s first sharding based blockchain. In this concept, the “transactions are grouped into smaller groups and divided among the miners for the parallel transactional verification.” The result is faster transaction speed and the cost is significantly lower as compared to Bitcoin or Ethereum (ETH-USD).
It’s worth noting that in September 2023, Zilliqa relaunched metaverse-as-a-service. When it was first launched in 2022, ZIL coin had quadrupled. I believe that the entry into the metaverse space is likely to be rewarding in the current bull market. I also like the fact that Zilliqa has attractive staking rewards. Currently, the APR is attractive at 13.22% with 30.75% of the circulating supply staked.
KuCoin (KCS)
KuCoin (KCS-USD) is another potential multibagger that currently trades at $10.4. It’s worth noting that KCS had touched an all-time high of $29 in December 2021. I believe that these highs are going to be re-tested in the current bull market.
As an overview, KuCoin is the eight largest centralized exchange in the world in terms of trading volumes. It’s a good time to consider exposure to centralized exchanges because cryptocurrency trading volumes will continue to increase in the coming quarters. Once there is a full-fledged altcoin rally, centralized and decentralized exchanges will mint money.
Currently, KuCoin is available in more than 200 countries or regions and has 27 million users. Furthermore, the exchange has more than 1,300 trading pairs (750 listed tokens). KuCoin also claims to have a stable liquidity profile with a reserve ratio of more than 100%. With a big addressable market and an ocean of listed altcoins, KuCoin is positioned to benefit.
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.
