Cryptocurrencies have somehow always captivated the interest of investors, and a tech enthusiast promising a new dimension of investment and diversification. Top cryptos such as Bitcoin and Ethereum dominate all the headlines, but there is also growing interest in some of the lesser-known coins which possess much smaller market caps. These “hidden gems” could promise a lot to the growth potential but are accompanied with unique risk factors which makes them worthwhile. In this article, we will discuss some of the best cryptocurrencies with low market caps worth including in your investment portfolio.
What is a Low Market Cap Cryptocurrency?
Before diving in with the details, there’s a need to understand what classifies a low market cap cryptocurrency. Market capitalization or simply referred to as market cap represents the total value of all the issued cryptocurrencies summed up and determined by multiplying its current price with the total number of coins in circulation. Therefore, the typical low market cap cryptocurrency has a valuation below $100 million. Low market cap cryptocurrencies are also in the early phase of development, hence highly volatile and newer cryptocurrencies. Why Invest in Low Market Cap Cryptocurrencies?
There are a few reasons one might find lower market cap cryptos attractive:
High Growth Potential- a smaller crypto often has less head room for appreciation in value, leaving this up to long-term growth as the project progresses and becomes more adopted. End
Diversification: adding ‘lower market cap cryptos’ into your portfolio enhances, also; through being less correlated, lower market cap cryptos can help spread risk.
Early Entry: Low cap coins will provide you an entry into the early stage before the project achieves significant recognition and adoption.
However, do remember to be careful in investments. There is a possibility that low market cap cryptocurrencies may get highly unstable, and generally, their prosperity depends on project development, general market sentiment, and changes in regulation.
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Top Cryptocurrencies with Low Market Caps to Watch for
Some promising low market cap cryptocurrencies that have been gaining much attention among the crypto community recently include the following: Here are some of them:
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VeChain (VET)
Market Cap: About $80 million
Overview: The focus has been on supply chain management and optimization of business processes to improve efficiency and offer more transparency through the use of blockchain technology. Supply chain product tracking of items in transit ensures authenticity and reduces fraud. The very promising use case along with partnerships with large corporations make VeChain the most significant player in the low market cap space.
Major Features:
Optimization of Supply Chain- Boosts the levels of transparency and traceability in supply chains.
Partners: Walmart collaborates with all top companies around the world that includes China and BMW.
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Nano
Market cap: About $70 million
About Nano
Nano is one of those cryptocurrencies that can be used daily because of quick and fee-free transactions. It uses a distinct mechanism, which is block-lattice structure to implement fast and scalable transactions. Unlike all other cryptocurrencies, Nano did not rely on PoW or PoS mechanisms.
Key Features:
Instant Transactions: Nano achieves instant transactions with no fees involved.
Scalability: Has unique architecture with its capability to process very large transaction volumes.
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Hedra Hash Graph (HBAR)
Market cap: Around $90 million
Hedera Hashgraph is a quantum public ledger developed to be much faster and more secure than the conventional blockchain networks. It uses a type of consensus algorithm known as Hashgraph and has greater promise of transactions with lower latency. Hedera is designed to enable thousands of applications such as decentralized finance like DeFi and enterprise solutions.
Key Features:
High throughput: can process thousands of transactions per second.
Governance: stability and credibility are ensured; it is governed by the Council of Global Institutions.
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Zilliqa (ZIL)
Market cap: About $60 million
Overview: Zilliqa is a high-throughput blockchain and uses sharding to scale. Sharding is the method of dividing up the network to process more transactions in parallel. This innovative approach makes it provide better performance and scalability to decentralized applications, also known as dApps, and smart contracts.
Key Features:
Scalability: The blockchain uses sharding to increase the throughput.
Smart Contracts: Allows the creation and deployment of smart contracts and DAPs.
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Raven Coin (RVN)
Market Cap: Around $50 million
Description: Ravencoin is a blockchain platform that aims towards the generation and transfer of digital assets. It allows users to issue tokens and manage transfers in a secure manner. Ravencoin, being simple, also efficient in the generation of assets, is an excellent choice when projects want to bring in new tokens.
Key Features:
Token Creation: Issues and transfers custom token.
Decentralized: A Decentralized network, with a focus on asset transfer.
How to Invest in Low Market Cap Cryptocurrencies
Investing in low market cap cryptocurrencies requires thorough research and due diligence. Here are a few points to consider:
Research the project: Understand the project goals, the technology and team behind the cryptocurrency. Assess the potential use cases and real-world applications.
Assess Market Trends: Look at the market trends and sentiments to assess the scope of growth. Look for projects with a strong community support and increasing adoption.
Diversify your portfolio: Don’t put all your money in a single low market cap cryptocurrency. Diversify your investments so that you reduce the risks and have an increase in potential returns.
Be knowledgeable of regulatory changes that may impact the value of cryptocurrencies. Strict regulations might affect the value and viability of low market cap coins.
Choose reliable exchanges: Choose secure and trusted cryptocurrency exchanges with which you can make a purchase or trade low market cap cryptocurrencies. Ensure the exchange you choose has an unblemished track record and guarantees to have proper security measures.
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Outcome:
In fact, low market cap cryptos can be really very exciting for investors ready to venture into the periphery of the cryptocurrency space. More so, they seem to have high risks and volatility but at the same time the potential of reaping significant profits becomes rather enticing. With proper research in promising projects such as VeChain, Nano, Hedera Hashgraph, Zilliqa, and Ravencoin you will have an opportunity to find other hidden gems in the cryptocurrency space. You will, however, need to tread with care while making investments and never miss to diversify your portfolio while keeping abreast of major market trends and changes brought about by the regulator.
It’s really great to invest in low market cap cryptocurrencies: this exciting, potentially rewarding investment experience is chock-full of inherent risks; therefore, do all your homework. Happy investing!
