There are multiple reasons to look for cheap cryptos and continue to bet on the further development of the cryptocurrency space.
In the short term, it’s clear that the leading assets in the space (Bitcoin (BTC-USD) and Ethereum (ETH-USD)) have rebounded strongly in 2023. Bitcoin drives the overall market and with the likely adoption of Bitcoin ETFs in 2024, the market should continue to strengthen.
Further, the interest rate hikes that have persisted since early 2022 appear to be subsiding. Currently, it looks as if the market expects no further rate hikes, making cheap cryptos even more interesting.
The long term outlook for crypto appears equally strong. Cryptocurrency is much more than a fad and that means that these cheap cryptos could multiply and value over the next decade.
Cardano (ADA-USD) is a prominent, inexpensive leading cryptocurrency with serious potential to multiply in value substantially. It is also one of the cheap cryptos positioned as an alternative to Ethereum and aims to solve many of the same problems.
Cardano, founded by Charles Hoskinson, is similar to Ethereum in its use for smart contract programming. Hoskinson’s connection to both projects lends a lot of credibility to Cardano.
The project is particularly intriguing because it has attracted a lot of attention from developers. Many of those developers are working to create decentralized applications based on the Cardano network.
The reason so many developers have such a keen interest in Cardano is that the project relies heavily on empirical research. That heavy reliance on empiricism should lead to a project that will continue to grow at a modest Pace while avoiding any fatal errors.
Thus, it’s reasonable to expect that Cardano could very well rise substantially in value over the next decade.
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As long as Ethereum continues to have problems, Polygon (MATIC-USD) and other cheap cryptos will continue to grow.
Polygon is a scaling protocol that piggybacks on the inherent issues of Ethereum and its lack of scalability. Developers and investors alike know that Ethereum continues to suffer from slow transaction speeds.
Polygon helps to solve those problems by handling those transactions on a separate blockchain that is also compatible with Ethereum.
Ethereum smart contracts dominate the cryptocurrency and blockchain space. Those contracts are used to build decentralized apps, NFTs, and other blockchain based assets. So, Polygon continues to make sense because it helps solve the problems of the leading smart contract provider in the space.
Beyond that, Polygon also helps to reduce costs associated with the use of Ethereum. The project’s continued opportunity is simple: Polygon reduces fees and increases transaction quantities for Ethereum smart contracts. Ethereum appears no closer to solving those issues than it was in recent years and thus Polygon will continue to have value.
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Polkadot (DOT-USD) is focused on bringing greater utility to the cryptocurrency space. Polkadot and its efforts to create an internet of blockchains has inherent value.
The project uses computer science based technology referred to as parachains and relay chains which all have the purpose of connecting disparate blockchains.
There’s a strong analogy between the development of the internet and what Polkadot is doing.
The early internet lacked connectivity and overall utility. Protocols such as hypertext markup language (HTML) allowed the connection of websites. It could then continue to develop into a connected web of interrelated resources and information.
Likewise, the early blockchain space consists of hundreds and thousands of isolated blockchains. Thus, Polkadot Continues to have massive potential in that it will serve to connect those blockchains.
In a decade’s time, that can make a project like Polkadot skyrocket in value.
The biggest news of 2023 for XRP (XRP-USD) Was that its parent company, Ripple, prevailed in its battle against the SEC.
Its victory hasn’t propelled the value of XRP beyond the dollar as many investors had hoped. However, it paves the way forward and allows the company to focus its resources on development.
Although Ripple prevailed in proving that it wasn’t a security, the court case continues and is not fully settled. It continues to have the potential to harm the immediate price of XRP especially in regard to programmatic sales. But that’s what also makes it one of the cheap cryptos to scoop up now.
In any case, the future looks bright for Ripple and XRP. It is the leading cryptocurrency in the remittance space. XRP eliminates the need for intermediaries in the cross-border payments sphere. In turn, that reduces overall costs across the entire value chain and creates demand for the cryptocurrency. That demand should only increase in the wake of its SEC victory this year as overall risk has subsided.
I continue to be optimistic about the long-term prospects of Hedera (HBAR-USD). The reason is simple: Hedera’s platform was designed with enterprise applications in mind. By Enterprise I simply mean businesses of all sizes but generally larger firms.
Enterprise clients are increasingly interested in adding cryptocurrency and blockchain functionality to their operations. Hedera has established itself as an early leading name in this space. In time, it’s the sort of early seed that could blossom into a much more valuable ecosystem.
The company’s website highlights multiple enterprise level use cases and applications.
It’s very logical to assume that an increasing number of enterprises will be looking to understand cryptocurrency for the organizations.
The sector continues to evolve rapidly and important news like the future expected adoption of Bitcoin ETFs should propel the entire sector higher. Thus, demand for Hedera is very likely to continue to increase. Hedera is the leading name in that space and is therefore a wise investment.
Arbitrum (ARB-USD) Is another layer to scaling cryptocurrency to consider. Like Polygon, Arbitrum is also relatively inexpensive, priced at just over a dollar.
And like all other layer 2 scaling solutions, investing in Arbitrum is simply betting on the future of that utility. It’s all about scaling the utility of Ethereum.
Arbitrum helps to handle some of the complex computational loads required to keep the Ethereum network operational. Remember, smart contracts are essential or essentially lines of computer code that cause a certain action to occur when certain precedents are met.
More and more smart contracts are going to be created as the space continues to develop. In turn, demand for layer to scaling solutions, including Arbitrum is likely to increase.
Other layer 2 solutions exist, but Arbitrum is inexpensive and thus appropriate for this list.
Algorand (ALGO-USD) is analogous to Ethereum in that the platform can host other blockchain projects and cryptocurrencies. Ethereum continues to be the dominant platform in that regard but that does not mean that it is infallible or that other similar platforms aren’t worth investing in.
Algorand continues to be interesting because it has that functionality. Further, Algorand’s supply is capped at 10 billion coins, 7 billion of which are currently circulating. Thus, it won’t suffer from deflationary pressures.
Beyond that, Algorand is one of a select few cryptocurrencies that currently boast ISO 2022 compliance. ISO20222 compliance is a standard for financial payments and data transfer between institutions and governs organizations globally.
With cryptocurrency increasingly becoming part of the main mainstream, ISO 2012 compliance is relevant. Cryptocurrencies that have such compliance clearly have a strong opportunity to integrate within the greater financial system.
On the date of publication, Alex Sirois 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.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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