If you want to grow your wealth in the next few years without much capital, consider investing a small part of your portfolio in some high-risk, high-reward cryptos. If a project is practical enough, I could see some of these being “millionaire-maker” cryptos.
Admittedly, I would agree that the best time to invest in crypto might’ve been at the trough a few months back, but you can still catch the train. Bitcoin (BTC-USD) has continued to be resilient despite dipping below $17,000 last year as it has bounced back and is now hovering around $27,000.
Nonetheless, substantial risk is involved here, even with the positive momentum. BTC has been failing to break above the $30,000 resistance level and the fact that a recession is on the horizon makes investing in crypto very risky right now.
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But that doesn’t mean you should avoid crypto altogether. If you have the appetite for risk, certain small-cap cryptos could return multibagger gains. Still, volatility goes both ways, and the disproportionate upside potential may also lead to serious losses, especially if you wish to use leverage.
With that in mind, here are three such millionaire-maker cryptos that I believe have what it takes to deliver those returns in the next few years:
Compound | $36.50 | |
AZERO-USD | Aleph Zero | $1.0886 |
XCN-USD | Cryptonite | $0.000277 |
Compound (COMP)
Source: Shutterstock
Compound (COMP-USD) is a crypto project that focuses on the tokenomics of ERC20 tokens. For example, Polygon (MATIC-USD) is a crypto project that is developing technology to boost the Ethereum (ETH-USD) blockchain’s speed and scalability. On the other hand, Compound allows users to earn interest on Ethereum tokens by depositing them into one of the platform’s several pools. These Compound pools return deposit tokens as cTokens, which can be redeemed for the initial crypto at any time.
Compound’s platform has features that allow users to ensure that their ERC20 tokens are not idle. That’s great, as they cannot be staked by default. These features, such as borrowing, are done entirely in a decentralized manner.
Nonetheless, the COMP token has been languishing at historic lows due to declining interest in ERC20 projects and token inflation. It also launched the multi-chain iteration last year, but that still keeps the crypto project within the bounds of the Ethereum blockchain. Meanwhile competitors like Aave (AAVE-USD) support most up-and-coming chains like Solana (SOL-USD).
So why is this a buy? For one, inflation has cooled down toa reasonable (at least when it comes to cryptos) 7.06%. It is also 3/4th of the way to hitting the 10 million circulating supply cap while the price seems stable at the $30-40 range with little downside risk. Another thing to consider is the total value locked in the protocolsits at $1.32 billion, much lower than the $279 million market capitalization, signaling that COMP is trading at quite a discount. As Ethereum blockchain excitement gears back into action, I believe COMP can deliver a substantial upside and become one of the millionaire-maker cryptos.
Aleph Zero (AZERO)
Source: Wit Olszewski / Shutterstock
Unlike Compound, Aleph Zero (AZERO-USD) is a peer-reviewed utilitarian project. While still relatively new, what the chain can achieve compared to many of the top projects right now is impressive. For starters, the Aleph Zero blockchain has near-instant finality. Their consensus protocol reached 100,000 transactions per second (TPS) with a sub-zero confirmation time. The ecosystem also offers private smart contracts, IPFS decentralized file storage, an information bridge oracle, and very cheap transactions. It also has substrate integration which makes it easy for blockchain developers to port their decentralized apps onto Aleph Zero.
Even though that’s very promising, the weak marketing has kept it under the radar. Moreover, I’d take these TPS metrics with a grain of salt – the ecosystem needs useful dApps and projects in the first place to make use of its capabilities.
Still, transactions on the Ethereum network are relatively cheap right now. But when the network is congested, I believe this will be among the top choices for developers seeking alternatives.
Cryptonite (XCN)
Source: Dilok Klaisatap*rn / Shutterstock
If you’re looking for a nano-cap, Cryptonite (XCN-USD) is a cryptocurrency that uses amini-blockchain scheme, which allows the network to forget old transactions after they become obsolete. This way, the blockchain size is kept small and fast, and the mining is more decentralized and fair.
Cryptonite also offers some unique features, such as withdrawal limits that let users set a limit on how many coins can be sent from their address. It also offers micro-transactions that enable cheap payments and it allows users to attach custom messages to their transactions.
Of course, I don’t see it reaching a market cap in the billions, but it is an interesting niche project. I could see it being adopted by people running lightweight hardware or wishing to have more control over their transactions. Overall, Cryptonite could definitely become one of the millionaire-maker cryptos.
On Low-Capitalization and Low-Volume Cryptocurrencies:InvestorPlacedoes 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 thatInvestorPlace.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.comPublishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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The post 3 Cryptos That Could Make You a Millionaire by 2025 appeared first on InvestorPlace.
As a seasoned cryptocurrency enthusiast and investor with a deep understanding of the crypto market, I want to delve into the concepts mentioned in the article, providing insights into each of the recommended "millionaire-maker" cryptos.
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Compound (COMP-USD):
- Tokenomics and Platform Focus: Compound is a crypto project primarily concerned with the tokenomics of ERC20 tokens. It facilitates the earning of interest on Ethereum tokens by allowing users to deposit them into various pools. The deposited tokens are returned as cTokens, which can be redeemed for the original crypto at any time.
- Decentralized Features: Compound's platform features decentralized mechanisms, such as borrowing, to ensure that ERC20 tokens are not idle. This distinguishes it in a decentralized manner from traditional staking.
- Current Challenges and Potential: Despite facing challenges like declining interest in ERC20 projects and token inflation, there are reasons to consider COMP. With a cooled-down inflation rate of 7.06%, nearing its circulating supply cap, and a comparatively low total value locked in the protocol, Compound may be undervalued. As Ethereum blockchain activities increase, COMP could experience significant upside potential.
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Aleph Zero (AZERO-USD):
- Utilitarian Design: Aleph Zero is positioned as a utilitarian project, offering near-instant finality on its blockchain with a remarkable consensus protocol achieving 100,000 transactions per second and sub-zero confirmation time.
- Feature Set: The Aleph Zero ecosystem includes private smart contracts, IPFS decentralized file storage, an information bridge oracle, and cost-effective transactions. Substrate integration further facilitates the porting of decentralized apps onto Aleph Zero.
- Marketing Challenges: Despite its impressive capabilities, Aleph Zero faces challenges in marketing, potentially hindering its widespread recognition. The metric claims, such as transaction speed, should be approached cautiously until real-world adoption occurs.
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Cryptonite (XCN-USD):
- Nano-Cap Design: Cryptonite operates as a nano-cap cryptocurrency, employing a mini-blockchain scheme to keep the network fast and decentralized. It discards old transactions, maintaining a small blockchain size.
- Unique Features: Cryptonite introduces distinctive features like withdrawal limits, enabling users to set transaction limits, and micro-transactions for cost-effective payments. Custom messages can be attached to transactions.
- Niche Appeal: While not projecting a billion-dollar market cap, Cryptonite's unique features make it potentially appealing for users running lightweight hardware or seeking more control over transactions.
In conclusion, these recommended cryptocurrencies exhibit unique characteristics and features. It's crucial for investors to carefully evaluate the risks and potential rewards associated with each crypto, considering factors like market conditions, adoption, and the overall cryptocurrency landscape. As with any high-risk investment, thorough research and a well-informed strategy are essential for success.
