Bitcoin (CCC:BTC-USD) has moved up so far, so fast that anyone starting to invest in cryptocurrencies is more or less forced to look at alternative plays. As of Friday May 7, BTC-USD was trading at $57,732, up 99.3% from $28,972 on Dec. 31, 2020. Many investors are considering other cryptocurrencies that might offer better upside and a cheaper absolute price.
This article discusses 7 of the top 20 largest cryptocurrencies to consider investing in beyond Bitcoin and Ethereum (CCC:ETH-USD), the second-largest cryptocurrency. ETH-USD was at $3,535 as of Friday, May 7, and is up 384% from $730.37 as of Dec. 31, 2021.
We’ll look for altcoins that have lower absolute prices than these top two cryptocurrencies. These alternative picks might provide the same meteoric upside both Bitcoin and Ethereum have had over their lifespan.
Each of these cryptocurrencies trades below $2. That means for $2,000 you can buy up to 1,000 coins or tokens. So if they ever trade above $100, like Litecoin (CCC:LTC-USD), currently at $351, or Filecoin (CCC:FIL-USD), at $150.67, investors can make a lot of money.
7 Cryptocurrencies Under $2 That Could Be The Next Bitcoin
- Dogecoin (CCC:DOGE-USD)
- Ripple (CCC:XRP-USD)
- Cardano (CCC:ADA-USD)
- VeChain (CCC:VET-USD)
- Stellar Lumens (CCC:XLM-USD)
- Tron (CCC:TRX-USD)
- BitTorrent (CCC:BTT-USD)
Let’s dive in and look at these cryptocurrencies.
7 Cryptocurrencies Under $2: Dogecoin (DOGE-USD)
Market Capitalization: $59.3 billion
Dogecoin was originally created as a joke to mimic the rise of Bitcoin, but it has since taken on a life of its own. I wrote about its phenomenal rise recently in InvestorPlace, and about those saying the joke is over.
Moreover, Dogecoin has a slightly inflationary token supply structure. This is because the token issues just 5 billion new Dogecoin each year. With a present total of 128 billion Dogecoin, that means the average annual increase is 3.90%. But each year this percentage increase declines as the base denominator rises.
This token supply structure may actually make Dogecoin a useful cryptocurrency for payments in the real economy, as I wrote in my Feb. 8 article. The reason is that economies need a slight bit of inflation, which helps account for both the velocity of spending as well as price increases.
It also discourages people from hoarding the currency, even though it rises in value. Since most large economies grow at an average clip of 3% or better over the long run, the greater-than-3% growth in cryptocurrency supply helps accommodate this growth.
Therefore, look for Dogecoin to take on more than just a cult following over the next year or so. I suspect it has a good chance of crossing $100 billion in market value, making it the third-largest cryptocurrency after Ethereum.
For example, if it were to hit $1 per Dogecoin, it would have risen nearly 120% from current prices, giving it a market cap just under $130 billion. That’s still a far cry from Ethereum’s $409 billion market valuation. So there seems to be an upward limit to how high this coin could fly.
Both Robinhood and Webull offer the ability to buy Dogecoin. I suspect that this has also played a huge part in Dogecoin’s rise. However, you still cannot do so on Coinbase (NASDAQ:COIN).
Market Cap: $50.3 Billion
Ripple, created in 2012, is tainted by lawsuits from both the SEC and private investors. In January, Coinbase delisted Ripple from its exchange. However, some other exchanges still allow trading in Ripple.
If you are willing to overlook the SEC issues (numerous and described in my recent article), Ripple might eventually succeed. Ripple wants to be a real-time payment settlement system with no chargebacks. The problem is there are a number of other cryptocurrencies in this space as well.
You can tell that I am somewhat lukewarm about Ripple’s prospects. Nevertheless, the currency has been rising, despite its troubles. For example, XRP-USD closed out 2020 at $0.2324. As of May 10, it was at $1.43. This means it has risen 515% so far this year.
I suspect that there is a good chance, given its speculative fever, Ripple token could…
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