The recent market selloff driven by tighter monetary policy has created an ideal environment for investing in cyclical assets such as cryptocurrencies. The Federal Reserve will likely U-turn in late-2023. Accordingly, when monetary policy flips again, these cryptos to buy are likely to surge, especially once the effects of Bitcoin’s (BTC-USD) halving in 2024 positively impact the crypto market.
Of course, mega-cap cryptos are the ones you should invest in if you are targeting steady long-term gains. But if you’re looking specifically for outsized short-term gains, it is best to seek out small projects with promising prospects. Many of these small projects offer excellent entry points right now, as few investors are willing to take risks in this environment, and it can be hard to pick out which ones have the most potential.
These small cryptos certainly have their risks, and volatility works in both directions. Thus, it’s important to remember that cryptocurrencies are speculative assets, and few projects offer real-world utility. Small-cap cryptos are also more centralized, which can make things even riskier.
With that in mind, if you are still determined to pursue outsized gains despite the risks, look into the following three cryptos to buy that I believe are among the most promising this month.ISK-USD Iskra $0.2436 LSS-USD Lossless $0.3023 CONE-USD HoneyWood $0.17
Iskra (ISK-USD) is a gaming platform that aims to bring many Web3 games into its ecosystem. Think of Steam or the Epic Games store, but for blockchain-based games. This unique idea certainly has the potential to turn into something big, as tokens such as Axie Infinity (AXS-USD) and Illuvium (ILV-USD) have shown, despite these tokens representing a single game. Iskra also has a daily lucky spin to onboard new users, who can stake the token for governance.
Indeed, the recent cryptocurrency decline has reduced investor interest in Web3 gaming. Still, this decline also presents an opportunity for investors looking for cryptos to buy at a great entry point. Cryptocurrencies will likely surge again when the economic environment becomes more conducive to cyclical assets, and so will the popularity of play-to-earn games, due to increased rewards. Thus, as a result of its vast gaming portfolio which provides its users with variety, ISK is among the best Web3 gaming cryptos to buy, in my view.
Lastly, Iskra has rolled out a decentralized exchange (or DEX), bridge, marketplace, and a non-fungible token (or NFT) card system. Each of these features should compel a higher valuation for ISK over time.
Investing in Lossless (LSS-USD) certainly hasn’t been “lossless” for investors in the past year, due to the broader crypto market selloff. However, the crypto project still piqued my interest due to the utility it offers despite its small size.
What utility am I speaking of?
The Lossless website explains the project as follows,
“Lossless protocol implements an additional layer of blockchain transaction security for ERC-20 standard tokens, mitigating the financial impact of smart contract exploits and private key theft…Lossless protocol utilizes community-driven threat identification tools and a unique stake-based reporting system to identify suspicious transactions, providing real-time protection.”
The Ethereum (ETH-USD) blockchain is among the most secure in the crypto world. But one thing that still plagues the crypto market is that many hackers find exploits in smart contracts, such as token bridges, through which they can drain hundreds of millions of crypto tokens. For example, a hack of the Nomad token bridge drained $190 million as of Aug. 2022.
With more and more ERC-20 tokens being created, there are even more projects that are susceptible to these sorts of attacks. The Lossless project offers a complex but robust solution. Thus, the project still has significant longer-term potential, despite this near-term relative underperformance.
Indeed, blockchain security solutions such as Lossless are bound to grow more popular due to the increasing volume of cyberattacks in this sector. I think the LSS token will be the top beneficiary of this trend, if mainstream projects adopt Lossless’ technology.
The main focus of HoneyWood (CONE-USD) is the gamification of blockchain mechanics as a simple transition to Web3. By playing, users gain improved familiarity with the fundamentals of the blockchain world, while having fun. This project has already gamified staking in the Cosmos (ATOM-USD) ecosystem, developing the process directly into the game.
HoneyWood aims to see mass adoption via taking the most popular game mechanics familiar to many players: match3 and farming. They also plan to publish a mobile app.
This project’s aims aren’t completely online. In fact, HoneyWood’s team is already actively connecting businesses from different spheres so that users can use their cryptocurrencies in real life. Currently, the project aims to help users turn their crypto into a car wash, in-store discounts, and even helicopter rides. Sounds cool.
HoneyWood is the first and so far the only Cosmos-based game, which should give it an edge in this ecosystem. Its community currently consists of about 70,000 users, which provides the project ample opportunity to scale the CONE token toward broader utility, while investors retain the potential for outsized gains.On Low-Capitalization and Low-Volume Cryptocurrencies:
InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization of less than $100 million or trade with a 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 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, Omor Ibne Ehsan 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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is a self taught investor. You can follow him on LinkedIn.