3 Penny Cryptocurrencies to Consider for Diversifying Your Crypto Portfolio
A crypto portfolio is incomplete without Bitcoin (BTC-USD) and Ethereum (ETH-USD). These are, however, established stories in the cryptocurrency space and can be likened to blue-chip stocks. Big money in the next bull market will be made …
A crypto portfolio is incomplete without Bitcoin (BTC-USD) and Ethereum (ETH-USD). These are, however, established stories in the cryptocurrency space and can be likened to blue-chip stocks. Big money in the next bull market will be made in penny cryptos that can be likened to growth or penny stocks.
In terms of the outlook for cryptocurrencies, the worst seems to be over. Bitcoin has trended higher by 32% for year-to-date 2023. I expect the bullish momentum to sustain. It’s worth noting that Bitcoin halving is due in 2024. The cryptocurrency tends to surge after the halving event. Further, I expect the dollar to weaken in the coming years, which will be positive for cryptocurrencies.
Generally, a rally in Bitcoin is followed by a surge in altcoins. There are several attractive projects to consider in the altcoins space. It’s, therefore, a good time to accumulate some penny cryptos for multibagger returns.
Let’s talk about three penny cryptos that are worth adding to your portfolio.
KuCoin (KCS-USD) has declined by 70% from December 2021 highs of $28.8. KCS looks attractive among penny cryptos for multibagger returns.
As an overview, KuCoin is among the top crypto exchanges in the world. Assuming another bull market for cryptocurrencies, the exchange seems positioned to benefit.
Currently, KuCoin claims to have 27 million global users, and the exchange has more than 750 listed tokens. With a diversified listing of altcoins, trading volume has been robust in the exchange. Besides spot and margin trading, KuCoin also provides investors with derivatives exposure.
It’s also worth mentioning here that KuCoin has its own wallet that already has 10 million global users. The wallet allows users to store cryptos and NFTs. At the same time, it allows the creation of a decentralized account for Web3.
KuCoin is targeting a daily trading volume of $30 billion and 50 million global users by the end of 2023. If this target is achieved, KCS is poised for a massive rally from current levels.
Source: WHYFRAME / Shutterstock.com
Zilliqa (ZIL-USD) has been a big underperformer, with a correction of 90% from all-time highs. However, the project fundamentals remain strong, and I expect ZIL to skyrocket within the next 24 months.
Zilliqa describes itself as the world’s first sharding-based blockchain. In the process of sharding, transactions are divided into smaller groups, and this allows parallel verification. This significantly reduces the transaction time. Further, the transaction cost (native token transfer) is 227 times lower than Ethereum.
In terms of benefits for holding the coin, Zilliqa currently has an attractive APR of 13.25%. This makes staking with Zilliqa rewarding at a time when the coin is significantly undervalued.
Another reason to like Zilliqa is the launch of metaverse services in 2022. With an expected growth in the augmented reality market, metaverse-as-a-service can be a potential game changer for the Zilliqa project.
InSure DeFi (SURE)
Source: Venomous Vector/Shutterstock
InSure DeFi (SURE-USD) is another name among penny cryptos poised for multibagger returns. The project claims to be the first DeFi, NFT, and metaverse insurance ecosystem. With the crypto world witnessing an increasing number of scams and stolen funds, the project seems to be critical for the ecosystem.
To elaborate on the utility, a user holding 10,000 SURE tokens has an insurance cover of $2,000 from scammers, devaluation, and stolen funds. Holding 500,000 tokens will provide insurance coverage of $140,000.
A key point to note is that as an increasing number of users hold SURE tokens for insurance, the supply will be tight. This is likely to translate into a meaningful rally. Another advantage is that SURE tokens currently provide an APR of 24%. This is a bonus besides the insurance protection factor.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with 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 a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.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, Faisal Humayun did not hold (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.
Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.
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