In this article, we discuss the 10 best cryptocurrencies to invest in according to Reddit. If you want to skip our detailed analysis of these cryptourrencies, go directly to the 5 Best Cryptocurrencies to Invest in According to Reddit.
In early May, Tesla, Inc. (NASDAQ: TSLA) chief Elon Musk made an appearance on popular television entertainment show Saturday Night Live and joked about Dogecoin, a cryptocurrency that began as an elaborate joke back in 2013 but had since crossed over $50 billion in market capitalization. Following the appearance, the value of Dogecoin, which had increased ten-fold in the leadup to the Musk skit on television, buoyed by users on internet platform Reddit, dropped by about 40% within hours. The episode highlighted the volatile nature of the crypto market.
Since cryptocurrencies are still finding it hard to get more mainstream recognition, an observation lend credence by the recent drop in the prices of cryptocurrencies on the back of campaigns on forums like Reddit and Twitter, as well as lobbying by big finance and governments that see crypto as a threat to the existing system, the Dogecoin saga has increased the skepticism surrounding the new technology. Investors are hesitant to jump on the crypto bandwagon where price volatility can pummel entire portfolios without much warning.
However, despite the gloomy short-term outlook, the long-term bullish view on crypto by big technology firms like NVIDIA Corporation (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOG) lends much hope for the future of blockchain. In addition to giants like Bitcoin and Ethereum, which account for more than two-thirds of the total market capitalization of the crypto market, altcoins are becoming more popular, especially through Reddit forums where retail investors often lead the conversations on the future of finance.
Bitcoin, the most popular coin, has tanked from an all-time high of $64,000 to around $30,000 in recent days. Ethereum, the second most popular coin, has also dropped from an all-time high of around $4,000 in the past few weeks. Market analysts, including hedge fund billionaires, see the pullback as a buying opportunity, arguing that altcoins can use the lull around crypto to catch up to Bitcoin and Ethereum. The conversations around these altcoins on Reddit certainly paint a rosier picture for these coins in the near-term future. Some of these coins are discussed below.
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There is little doubt that crypto has transformed the world of finance. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best cryptocurrencies to invest in according to Reddit. These currencies were picked based on the hype around them on Reddit, the growth potential they have in the coming months and years, and the ease with which they are available for use in transactions today.
Best Cryptocurrencies to Invest in According to Reddit
TRON is a cryptocurrency founded by Justin Sun in 2017. It is placed tenth on our list of 10 best cryptocurrencies to invest in according to Reddit. The initial coin offering of TRON managed to raise over $70 million in 2017 before an earlier Chinese crackdown on crypto firms. TRON is a blockchain network with a native currency and has the processing power to compute 2,000 transactions per second. These can be made from anywhere and to anywhere globally with minimal fees. TRON closely resembles the Ethereum blockchain network but is cheaper.
The mainstreaming of coins like TRON has been made possible in large part by crypto initiatives from firms like Visa Inc. (NYSE: V), the California-based payments company. Visa Inc. (NYSE: V) recently contributed to $300 million in funding for Blockchain Capital, a venture capital firm concentrating on blockchain technology and the crypto ecosystem.
At the end of the first quarter of 2021, 164 hedge funds in the database of Insider Monkey held stakes worth $26.5 billion in Visa Inc. (NYSE: V), down from 166 in the preceding quarter worth $23.5 billion.
Just like Tesla, Inc. (NASDAQ: TSLA), NVIDIA Corporation (NASDAQ: NVDA), and Alphabet Inc. (NASDAQ: GOOG), Visa Inc. (NYSE: V) is one of the best crypto investments according to Reddit.
Here is what ClearBridge Investments has to say about Visa Inc. (NYSE: V) in its Q1 2021 investor letter:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
9. VeChain Token
VeChain has rapidly gained in popularity on internet forums like Reddit over the past few months, offering investors handsome returns.VeChain is a blockchain platform with two kinds of coins, named VeChain Token and VeChainThor Energy. It is ranked ninth on our list of 10 best cryptocurrencies to invest in according to Reddit. VeChain Token is used for transactions within the VeChain network while the latter is utilized in smart contracts. VeChain is a relatively cheaper coin compared to many others but promises significant upside potential.
As cryptocurrencies explode in popularity, one of the largest cheerleaders of the new technology has been Square, Inc. (NYSE: SQ), the digital payments company with close to $400 million in crypto-related assets. Square, Inc. (NYSE: SQ) stock was recently given a Buy rating by investment advisory DA Davidson with a price target of $275.
At the end of the first quarter of 2021, 92 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Square, Inc. (NYSE: SQ), up from 89 in the preceding quarter worth $8.8 billion.
Just like Tesla, Inc. (NASDAQ: TSLA), NVIDIA Corporation (NASDAQ: NVDA), and Alphabet Inc. (NASDAQ: GOOG), Square, Inc. (NYSE: SQ) is one of the best crypto investments according to Reddit.
In its Q1 2021 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Square, Inc. (NYSE: SQ) was one of them. Here is what the fund said:
“We established a position in leading Financial Technology provider Square during the quarter. Through one integrated system, SQ is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers).The combined business has grown gross profit at a 37% CAGR over the past five years to $2.7 billion (due to pass through costs, gross profit is more reflective of top-line growth) and we believe that the company has an enormous long-term runway, as it has less than a 2% share of a more than $160 billion market. It is our view that the company’s Cash App (which has grownfrom nothing in 2015 to $1.2 billion gross profit last year) has a particularly large opportunity with its powerful ecosystem of digital financial services including digital wallets, direct deposits, stock trading, bitcoin trading, and business and tax services, which are all relatively new. The vast majority of Cash App’s more than 36 million users are younger and, importantly, are willing to replace their bank and other financial services accounts with the app.We estimate that the company can grow its gross profit more than 30% and EBITDA more than 50% annually for the foreseeable future, and while most of the company’s current profit is from its Seller Business, we believe most of Square’s future value will be from its Cash App business.”
Stellar is placed eighth on our list of 10 best cryptocurrencies to invest in according to Reddit. It is a blockchain-based network with a native currency. Over the years, Stellar has developed into the platform of choice for those wishing to make fast and low-fee conversions from crypto to fiat currencies. The system was launched in 2014 by Jed McCaleb and Joyce Kim. In stark contrast to many other crypto coins, Stellar markets itself as a platform specifically designed to meet the special needs of those who want to bypass banks altogether when moving money.
Stellar It Coins like Stellar are becoming integrated into the digital payments ecosystem by firms like PayPal Holdings, Inc. (NASDAQ: PYPL), the California-based financial technology platform. On June 21, investment advisory Bank of America maintained a Buy rating on PayPal Holdings, Inc. (NASDAQ: PYPL) stock with a price target of $323.
At the end of the first quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $14.7 billion in PayPal Holdings, Inc. (NASDAQ: PYPL), down from 147 in the previous quarter worth $15.9 billion.
Just like Tesla, Inc. (NASDAQ: TSLA), NVIDIA Corporation (NASDAQ: NVDA), and Alphabet Inc. (NASDAQ: GOOG), PayPal Holdings, Inc. (NASDAQ: PYPL) is one of the best crypto investments according to Reddit.
In its Q4 2020 investor letter, Polen Capital Management, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ: PYPL) was one of them. Here is what the fund said:
“For the full year 2020, one of the top performers was PayPal, which we purchased in 2019, the company continues to take market share in digital payments and has seen an acceleration in user adoption and engagement, especially within their “silver tech” or older user demographic. We expect many more years of ongoing double-digit growth from their various business segments and new initiatives.”
Polygon is a cryptocurrency and blockchain network launched in 2017 by Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic. It is ranked seventh on our list of 10 best cryptocurrencies to invest in according to Reddit. Polygon is among the most popular and moderately priced coins on the market but has explosive growth potential as the network is working on DeFi, decentralized finance, DApps, decentralized applications, and DAOs, decentralized autonomous organizations.
Over the past decade, Microsoft Corporation (NASDAQ: MSFT), the Washington-based technology company, has consistently backed cryptocurrencies to succeed. Microsoft Corporation (NASDAQ: MSFT) recently announced a collaboration with Deluxe to provide smart business solutions for small businesses.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT) with 23.9 million shares worth more than $5.6 billion.
Just like Tesla, Inc. (NASDAQ: TSLA), NVIDIA Corporation (NASDAQ: NVDA), and Alphabet Inc. (NASDAQ: GOOG), Microsoft Corporation (NASDAQ: MSFT) is one of the best crypto investments according to Reddit.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
Tether is an open source, peer-to-peer blockchain system and is one of the most popular stablecoins on the market. In the crypto world, stablecoins are backed in value by assets like the US dollar so that they avoid the price volatility associated with other coins. Tether It is placed sixth on our list of 10 best cryptocurrencies to invest in according to Reddit. Tether coins are usually issued by Tether Limited, an entity controlled by a Hong Kong-based cryptocurrency exchange named Bitfinex.
Another possible investment in the crypto market as digital currencies become popular is Facebook, Inc. (NASDAQ: FB), the technology company that owns some of the largest social media platforms in the world. Facebook, Inc. (NASDAQ: FB) operates an online marketplace and has already announced plans to launch its own cryptocurrency.
At the end of the first quarter of 2021, 257 hedge funds in the database of Insider Monkey held stakes worth $40 billion in Facebook, Inc. (NASDAQ: FB), up from 242 in the preceding quarter worth $38 billion.
Just like Tesla, Inc. (NASDAQ: TSLA), NVIDIA Corporation (NASDAQ: NVDA), and Alphabet Inc. (NASDAQ: GOOG), Facebook, Inc. (NASDAQ: FB) is one of the best crypto investments according to Reddit.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ: FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
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