SOL - Forget Bitcoin: Buy 2 Cryptocurrencies for Explosive Return Potential
When people think about investing in crypto, most of them think about Bitcoin . Many people don’t distinguish between the two terms and are unaware and uninterested in other crypto options. That’s part of the reason why Bitcoin has become so expensive. The other reasons are its limited supply and the interest of institutional investors in this asset class.
However, Bitcoin has gone through its glorious growth phase. Even at its current price, which is almost 42% lower than the last peak, its growth potential is somewhat capped. It would have to go beyond its previous peak simply to double your money and beyond US$100,000 — a height that’s becoming increasingly lofty — to triple any investment.
However, there are plenty of cryptocurrencies and relatively stable ones that are better poised for such growth.
The seventh-largest crypto by market cap
Solana (CRYPTO:SOL) is currently trading at $114 per unit — a far cry from its yearly peak of $322. The crypto will only have to reach $350 to triple your capital, which is an easily achievable number at its current rate.
And even though it’s currently a decent enough buy thanks to its vast discount, it is expected to become even more heavily discounted, as the current slump continues, backed mainly by two factors. The first factor is the broad market in the U.S. that impacts Bitcoin as well, and it’s expected to suffer from the consequences of higher interest rates that the Fed is expected to announce.
The second factor is Solana specific. As an NFT favourite, Solana sees a lot of traffic related to these particular tokens. And even though it’s not a common occurrence, NFT-minting bots caused a seven-hour outage in the Solana network.
Whenever something like that happens, investors start questioning the reliability of the network and the associated crypto, and many of them start dumping their holdings. This can trigger an even higher discount, making the recovery-based return potential even more potent.
The ninth-largest crypto by market cap
Cardano (CRYPTO:ADA) has been around since 2017, an adequate time for a crypto to mature, and there are plenty of reasons why it stands out from the crowd and might be a better choice than Bitcoin. The most prominent reason is the sustainability it offers. One major chink in Bitcoin’s armour is the energy used to maintain the blockchain and validate transactions.
With Cardano, the process is quite green and almost instantaneous. The cost is low, and the decentralization potential is more extensive than most cryptos and blockchains.
As for growth potential, the crypto is currently trading at a 71% discount from its peak and can offer much more than 300% growth just by re-reaching its former peak.
Foolish takeaway
Crypto investing in Canada can prove far more rewarding than most other assets, especially if you are looking for heavy short-term gains. But the risk is proportionally higher as well. The current crypto slump allows investors to buy most crypto assets at a discounted price.
The post Forget Bitcoin: Buy 2 Cryptocurrencies for Explosive Return Potential appeared first on The Motley Fool Canada .
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Solana.
2022