Many cryptoinvestors go after discreet cryptocurrencies in hopes of making high profits by entering early. However, with more than 12,000 coins to choose from, this can be a dangerous strategy, especially because many of the smaller coins are scams or poorly planned projects with a high probability of failure.
However, there are a number of interesting, lesser-known cryptocurrencies worth adding to your portfolio. We focused on coins that are not in the top 50 by market capitalization, but are still in the top 300.
Here are four discreet cryptocurrency projects to add to your watch list.
1. Livepeer (LPT).
Livepeer is an interesting cryptocurrency with an experienced team behind it. It is a decentralized video streaming network built on the Ethereum (ETH) blockchain .
According to the Livepeer website, streaming video uses 80% of all Internet bandwidth. In addition, the process of formatting video for different devices, called transcoding, is extremely expensive. Livepeer wants to change that. It uses a decentralized network of so-called “orchestrators” to transcode video content quickly and cheaply.
Investors have been watching Livepeer ever since TikTok announced a partnership with Audius (AUDIO), a provider of decentralized music streaming. This demonstrates the huge potential of these types of blockchain projects. In addition, the fact that Livepeer is the focus of the Grayscale Investments trust is a good indication that it is a serious project. (Grayscale is a major crypto asset manager.)
2. Helium (HNT).
Helium is another hidden cryptocurrency with great potential. It is a peer-to-peer network designed to provide connectivity to the Internet of Things (IoT) . “The Internet of Things” is a way of connecting everyday items, such as watches or appliances, to the Internet.
The idea behind Helium is that it can bypass traditional physical Wi-Fi network infrastructure, which is expensive. Instead, businesses and households can install Helium routers and earn HNT for providing connectivity. Helium uses long-fi routers that are 200 times faster than home Wi-Fi routers. Together, these routers form a decentralized Wi-Fi network.
Helium now has more than 200,000 access points in 130 countries, and that number is growing, though it can be tricky for those looking to buy long-fi routers
3. Ergo (ERG).
Cryptocurrencies with smart contracts have been causing quite a stir in recent months . Smart contracts are tiny pieces of code that live in a blockchain and allow developers to create applications on their network. Ethereum is the first and best-known platform for smart contracts, but it has fallen victim to its own success and suffers from network congestion and high fees.
Ergo, a project that offers smarter smart contracts because it does not charge for gas . So it’s easy for developers to predict the cost of developing an app or product. In addition, Cardano (ADA) founder and cryptography legend Charles Hoskinson called it one of his favorite crypto projects .
On the other hand, Ergo may have focused too much on its technical development and not enough on attracting developers. In addition, it is not available on many leading cryptocurrency exchanges.
4. Chiliz (CHZ).
Chiliz has been around since 2018, and it is not one of the top 50 cryptocurrencies in terms of market capitalization. If you haven’t heard of it, that’s a good sign to research further, especially if you’re into sports.
Chiliz issues fan tokens that promote other fans’ involvement. It already has deals with major soccer teams such as AC Milan, Juventus and Barcelona. An example of how the project promotes engagement? Barcelona fans voted to design wall murals for the team’s locker room, and a couple of lucky fans won tickets to go backstage.
The price of CHZ jumped sharply in March to a record high of $0.89. The token has been hovering around $0.02 to $0.03 in recent months, and as the sport fully resumes as pandemic restrictions are lifted, this token could have great potential.
Before you get down to business, do your own research
Hidden cryptocurrencies carry even more risk than popular ones. It’s a relatively new and unregulated industry, and most of all the cryptocurrency projects we see today could fail, as we saw during the dot-com boom of the late 1990s.
If you want to invest in lesser-known coins, invest only money you can afford to lose, and make sure you are not afraid of risk. The information above is meant to give you an idea of each project, but you also need to do your own research – look at the management teams, technical documents, and the problems each cryptocurrency wants to solve.
Balance is also key. Make sure your emergency fund is replenished and that cryptocurrency is only a small percentage of your total investment. And in your crypto portfolio, don’t forget about larger coins such as Bitcoin (BTC) and Ethereum. They should still make up a significant portion of your cryptocurrency investments.