Top cryptos such as Bitcoin (BTC-USD) and Ethereum (ETH-USD) are solid tokens for most long-term investors. That said, purchasing certain altcoins can be a great option for those who want to gain higher-risk, higher-upside exposure to digital assets. Thus, investing in the hottest altcoins presents an exciting opportunity for investors taking a risk-on view of this market.
These more speculative assets have performed very poorly in 2022. This bear market in crypto is one that’s been difficult to navigate for most investors. However, when this crypto winter comes to an end, there’s plenty of upside for many of the hottest altcoins to return to their previous growth ways.
By diversifying into various altcoins, risk-tolerant investors can gain access to leveraged returns if there is a rally when crypto winter ends. However, investing in altcoins requires making informed decisions and continuously monitoring changes in the crypto space to act quickly as markets fluctuate. With patience and due diligence, investors will be rewarded for their investment strategies. Having said that, let’s look at the seven of the hottest altcoins to buy for 2023 and beyond.
Cardano (ADA-USD) is an open-source blockchain platform that seeks to deliver more scalable, flexible, and secure solutions than first-generation blockchains. This project utilizes Ouroboros, a proof-of-stake consensus protocol that allows the network to achieve security objectives without sacrificing decentralization or scalability. With its impressive focus on research and development, Cardano looks to create a better balance between user privacy and regulatory compliance. Accordingly, Cardano is a vital part of the digital currency landscape providing excellent leverage to those bullish on smart contracts growth.
Cardano has been generating a lot of hype as of late, due to its the surge in trading volume seen among institutional investors. Currently, Cardano’s ADA token trades at dirt-cheap levels compared to its previous highs, and its incredible long-term outlook makes it a no-brainer bet. Additionally, its affordable price tag makes Cardano an attractive proposition to prospective buyers looking to invest in projects with rising volume.
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Solana (SOL-USD) made a major splash in the blockchain space last year. It’s been touted as one of the top of “Ethereum Killers” due to its robust speed, scalability, and efficiency. Though Solana has shed a ton of value this year, all signs point towards a tremendous long-term growth runway for the platform.
Indeed, Solana is quickly becoming one of the most sought-after blockchain tokens, in many respects. This is especially true in the non-fungible token (NFT) market. That’s because Solana charges a fraction of a cent per transaction, which is significantly cheaper than Ethereum’s nine cents per transaction. Its speed is even more impressive, with Solana handling up to 3,400 transactions per second as opposed to Ethereum’s 15. This has resulted in a healthy uptick in user engagement and adoption as investors take advantage of lower fees and higher throughput.
In fact, Solana beat out Ethereum in daily transactions in the second quarter. The Solana network processed a whopping 40 million transactions, compared to Ethereum’s 1 million. Thus, it’s little wonder why Solana seems destined for further success.
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Decentraland (MANA-USD) is an exciting opportunity for investors looking to bet big on the metaverse. Users can purchase MANA tokens to buy and own land in the virtual world and build their own experiences, which all take place on the Ethereum blockchain. The world of Decentraland can host events such as auction houses, participatory games, virtual malls with digital stores, art galleries, and many others. These events have the potential to provide another revenue stream for many of its core users.
Interestingly, like other blockchain-based metaverse projects, Decentraland’s users are incentivized with NFTs. As engagement increases, so too should this token’s value over time. Indeed, the engagement metrics seen thus far with Decentraland suggests promising long-term growth potential for ambitious investors.
Decentraland gained the attention of crypto investors last year when it traded at an all-time high of $5.90. However, MANA tokens currently trade hands at just 40 cents per token. I think that’s an excellent price for those looking to play this game for the long-term. Industry experts predict a ridiculous 37.5% compound annual growth rate for the metaverse market between 2022 and 2030, which highlights MANA’s incredible potential.
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Cosmos (ATOM-USD) is transforming blockchain interoperability, providing the potential to modernize the decentralized financial system. It allows developers to easily design highly-specialized blockchains that enable all kinds of novel applications across multiple industries. The platform allows users to seamlessly transact between different blockchains without third party interaction. This network is making it easier for people to access a host of blockchain services anywhere, anytime.
Cosmos promises to revolutionize blockchain technology as we know it today by unlocking a previously untapped level of interconnectedness within the industry. The platform effectively reduces complexity for developers, resulting in greater efficiency for distributed applications. In addition, with the communication established between different networks and applications, users will benefit from greater convenience when interacting with decentralized applications.
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Curve (CRV-USD) is a unique project that is essentially a governance token of one of the largest decentralized exchanges in Curve. I think CRV is a special investment opportunity right now. That’s because this project is one that helps to decentralize decision-making and governance of the Curve protocol, one of the best ways to gain exposure to crypto trading.
Curve’s CRV token also enables holders to earn rewards from user activity fees and allows them to vote in proposed modification proposals for the platform. For those bullish on decentralized exchanges relative to centralized options (given the concerns around FTX and others), this is a great way to play the future growth of the crypto sector.
Additionally, I think this token’s volatility could actually be a reason to get bullish on CRV. Given this token is trading near its lowest levels, investors have an excellent buying opportunity right now. This low-risk coin carries fantastic upside driven by the future success of the Curve project. Thus, I think CRV is worth considering for any investor looking for massive gains over the long-term.
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Over the past year, Cronos (CRO-USD) has gained a lot of ground in the crypto space. This project has attracted over 10 million users, continuing to gain new users with its aggressive marketing efforts. The CRO token powers the Crypto.com platform, allowing users to easily convert cryptocurrency to fiat money, and vice-versa. As one of the leading blockchains in the DeFi space, Cronos has $1.15 billion in total value locked within its DeFi ecosystem.
Cronos is certainly investing heavily to attract the attention of new crypto fans. The project’s massive purchase of the naming rights to the Staples Center and investments in global powerhouse sports team brands makes this a token that’s sure to get noticed. More recently, Cronos became an official sponsor of the ongoing FIFA World Cup. This proves it has lofty ambitions in the crypto sphere, at least from a marketing perspective.
With enviable growth and a steady place in its niche market, there’s no doubt that Cronos will continue gaining popularity in the months and years ahead.
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By utilizing its innovative technology, Polygon (MATIC-USD) allows its developers to build and run decentralized applications more efficiently on the Ethereum network. It’s essentially a side-chain to the Ethereum network, which is a perfect choice for ambitious projects that require an extra boost in speed and throughput. Furthermore, Polygon’s Layer-2 scaling solution greatly improves the user experience by reducing transaction fees and improving transaction times.
Polygon has been making big strides in the cryptocurrency landscape. Notably, a recent partnership with Meta Platforms (NASDAQ:META) has turned heads. This partnership will see the development of NFT platforms for Facebook and Instagram. Moreover, Polygon is also providing help to the decentralized exchange SushiSwap (SUSHI-USD) and the lending platform Aave (AAVE-USD) to increase scalability and network speed.
For those looking to take advantage of crypto volatility, projects like Polygon that drive developer interest via a more secure and scalable network should be considered. In this regard, Polygon is likely to become an even bigger player in the crypto space down the road.
On the date of publication, Muslim Farooque held a LONG position in Ethereum and Solana. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.