There are some cryptos for brave investors that every crypto enthusiast should have on their watchlists. The coins are marred with high risk and volatility but also have immense potential for outsized returns. Investing in these cryptocurrencies requires steely nerves and a risk appetite, but the payoffs could be life-changing if things go right.
While undoubtedly risky, allocating a small portion of one’s portfolio to these cryptocurrencies could actually improve overall risk-adjusted returns if the investments pay off. The key is to treat them as asymmetric bets with an incredibly skewed risk/reward profile.
However, the ups and downs of the market, as well as coin-specific risks make these investments not for the faint of heart. I recommend that investors study these investments carefully before jumping in.
So, here are three cryptos for brave investors in March. I think we’re headed towards a boom or bust scenario with these.
Ethereum (ETH-USD)
Ethereum (ETH-USD) is one of those cryptos for brave investors that I think could take Bitcoin’s (BTC-USD) crown as one of the leaders in the market. The reason is that analysts are very bullish on ETH’s trajectory.
ETH is for brave investors due to the potential opportunity cost of missing out on what could be a historic Bitcoin rally in the making. However, the ETH development team has its own plans in motion that could pay off.
That outlook is buoyed by the introduction of the Dencun upgrade, featuring proto-danksharding and other technical improvements aimed at reducing transaction fees and increasing transactions per second.
Experts predict these advancements could significantly impact Ethereum’s market performance. JPMorgan (NYSE:JPM) and other analysts forecast Ethereum’s potential to outperform Bitcoin in 2024, That optimism is reflected in the growing ether-bitcoin ratio and an anticipation of Ethereum reclaiming market share. Some price predictions suggest ETH could reach up to $8,000 by 2026, with a more immediate forecast suggesting a range between $3,400 to $3,800 by the first quarter of 2024.
ETH bulls will be salivating at this news, and I believe the best has yet to come for this cryptocurrency.
Binance Coin (BNB-USD)
Binance Coin (BNB-USD), the native cryptocurrency of the Binance exchange, I believe has more upside than it appears at first glance. Despite challenges, including significant withdrawals following Binance’s CEO stepping down amid compliance issues, BNB’s price prediction for 2024 remains optimistic.
BNB is for brave investors due to the controversy of its CEO pleading guilty to not maintaining anti-money laundering standards, which has shaken the platform to its core.
But the future for BNB looks bright.
For example, CoinCodex anticipates BNB could trade within a range of $551.55 to $1,016.97, potentially increasing by 82% to reach the upper price target. Mudrex forecasts a more moderate but positive performance for BNB in 2024, with a projected 14% rate of return and a price range of $260 to $334.66. However, the sentiment around BNB is largely bullish, with the Fear & Greed Index indicating a state of “Extreme Greed” at 78.
I feel it’s important for investors to appreciate that these predictions aren’t pure speculation. BNB is perhaps one of the most successful altcoins launched via an IPO, and it has, perhaps, some of the most legitimate and attractive use cases for its token, which is used for paying trading fees, staking, gambling and much more.
Looking ahead, significant efforts are being made to lower gas fees and introduce scalable solutions for the Binance platform. The roadmap introduces a multi-chain strategy aimed at increasing transaction processing speeds from 2.2K transactions per second (TPS) to 5K TPS, and there is more on the way.
Bitcoin (BTC-USD)
Bitcoin is entering a crucial phase in its 4-year halving cycle. The next Bitcoin halving, expected in April 2024, will reduce the reward for mining new blocks, thereby decreasing the rate of new Bitcoin entering circulation. Moreover, the launch of spot Bitcoin ETFs in Q1 of 2024 is anticipated to further stimulate demand.
In the short term, forecasts suggest a bullish trend for Bitcoin, with prices expected to reach around $80,279 by April 2024.
BTC is for brave investors only due to a proposed crypto mining tax by the Biden administration. If re-elected the tax could go into effect, scaling up to 30% of the miner’s profits. That could cut into the margins of these firms even more, as the halving event will also reduce the block rewards for miners.
Those who have diamond hands may be rewarded, as Cointelegraph and other sources suggest that Bitcoin could target a zone of around $120,000 by the end of the year.
On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
