Many people were drawn to invest in cryptocurrency after hearing stories of moonshots and lambos. Investors who found coins before they climbed the market cap list experienced explosive gains. In many cases, the gains were over 1000% and made quite a few millionaires in the process.
After the cryptocurrency market crashed hard early in 2018 and has been seemingly going sideways ever since investors are hungry for a bull market breakout. However many are now searching for the next wave of crypto coins and tokens that could be the breakout investments of 2019. The Motley Fool thinks it may be a smart idea to move away from the big boys like Bitcoin, Ethereum and Ripple and to look to coins outside the top 10’in market cap.
The coins between 10 and 20 on the market cap list have experienced the same bearish conditions as the top cryptocurrencies and have been basically stagnant for a long time as well.
“NEM and Zcash have climbed 21.6% and 9% in value over just the past 7 days according to Investing.com, while all the others have fallen over what has been a poor week for traditional capital markets and cryptocurrencies alike.”
Tron is an example of a cryptocurrency that is just outside the top ten that seems to be growing in awareness but not value. Binance’s BNB coin has shown to be stable and could be awaiting breakout as Binance continues to grow in user volume. Both of these assets could make moves to the top 10 before long.
While in search of the biggest potential growers, investors must consider that the lower the market cap of the cryptocurrency they choose to get behind, the bigger the risk they are assuming. While the next millionaire-maker may be way down the market cap list, the market has clearly shown that cratering is just as likely as flying to the moon.
According to the Motley Fool, it’s still more sensible to explore traditional investment channels and that “many investors would still prefer the reliable dividends of Commonwealth Bank of Australia (ASX: CBA) or Insurance Australia Group Ltd (ASX: IAG), over digital currencies any day.” Still, being aggressive could pay off big time because as the Fool says, “neither CBA or IAG are ever going to shoot the lights out in our lifetimes.”