So, like a wise squirrel, you stored your acorns away for the winter, resisting the temptation to jump on the cryptocurrency bandwagon and buy major cryptocurrencies like Bitcoin at their ATH (all-time high). Now, cautiously poking your head out after the crash, you think everything has hit bottom and that we are not in a declining market. After all, what could be worse than a 50% correction?
Ready to take that investment risk and buy-in, you ask yourself, “What coins have the most potential?”
Large Caps
If you like the well-known cryptocurrencies with large market caps, SoFi Crypto may be the digital bank for you. SoFi digital assets on the SoFi invest platform include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), Cardano (ADA), and Litecoin LTC. Investors include PayPal co-founder Peter Thiel.
The original purpose of SoFi was to help refinance student loans. Subsidiaries include SoFi Invest, SoFI Securities LLC, SoFi Wealth LLC, and SoFi Lending Corp. Borrowers have access to SoFi loans and SoFi money. Based in San Francisco, to have access to SoFi, one has to be a U.S. citizen.
Another payment service that supports crypto transactions with large-cap digital assets is PayPal. Crypto holdings that you can acquire on PayPal include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin LTC. PayPal does not have the lowest rate, however, in that commissions are 2.5% per trade.
Some people think that these large caps have less potential because, since they are already pretty large, they would need to have a lot of money flowing into them to 5x and 10x. However, the advantage of trading with large caps is that these coins are less likely to become worthless than small caps. Also, Bitcoin had done a 4x over a six-month period before the crash, and Ethereum and Cardano are favorites in the smart contract world. In addition to the coins mentioned above include Ripple (XRP), Polkadot (DOT), Binance Coin (BNB), and Dogecoin (DOGE), which used to be a small-cap.
Small Caps
Small caps have less trading volume and therefore need less money pumping into them before they double and triple and 10x and 20x and100x. The downside, however, is that small caps offer a high degree of risk. They are also more difficult to acquire and need to be purchased through a crypto exchange, like Coinbase or Binance, often with some stable coin, like Tether (USDT), rather than fiat currency.
In the smart contract race, promising small caps include Solana (SOL). Aventus (AVT), Polygon (MATIC), and Avalanche (Avax). In the gaming space, small caps include Enjin, SuperFarm, Chain Games, and Chain Guardians. Shopping.Io and CRO also have potential in the retail space and can even be used to buy a pair of stretch pants or a denim jacket. Because of the high degree of risk, some diversification might be a good idea.
For those who are really comfortable with a high degree of risk, meme coins are an option. Meme coins are so small that they start at being worth several times less than a penny. Even before the crash, one would buy 30,000 Shiba Inu coins for how much? $10. After the crash, that $10 could buy you 100,000 Shiba coins, and for $100, you could enter the Shibillionaire club! Other meme coins include Kusam Coin and SafeMoon, and SafeMars.
Caps Conclusion
When looking for growth potential, do not fixate on the prices trying to be the next Shibillionaire! Try to understand the use case of the cryptocurrency in question before you invest. Let’s say you want to buy Bitcoin in the low 40s, but you do not have $43,000 to invest. That is ok. Rather than owning an entire coin, you can buy fractional shares of a coin, which in Bitcoin’s case is called a Satoshi.
Remember, what goes down in price is always expensive, no matter how little you pay per coin, and what goes up is always cheap.
