In this article, we discuss the 10 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
10. TRON
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 grown
from 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.”
8. Stellar
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.”
7. Polygon
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.”
6. Tether
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.”
5. Algorand
Algorand is a blockchain-based network that uses the native Algroand currency for transactions. It markets itself as the first pure proof-of-stake blockchain in the world. It is ranked fifth on our list of 10 best cryptocurrencies to invest in according to Reddit. The technology used by Algorand promises a high performing system that guarantees security, scalability, and built in privacy. The Algorand ecosystem claims it is building itself for the future of finance where these needs will be foremost for most people when using digital payment methods.
Investors should also keep Alphabet Inc. (NASDAQ: GOOG), the parent company of internet search engine Google, on their radar for the crypto space. Alphabet Inc. (NASDAQ: GOOG) was recently given a Buy rating by investment advisory Argus with a price target of $2,800.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in the firm with 2.9 million shares worth more than $6.1 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ: GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
4. IOTA
IOTA is placed fourth on our list of 10 best cryptocurrencies to invest in according to Reddit. It is a cryptocurrency released in 2016. The coin is different from other coins because it caters to the special needs of the Internet of Things (IoT) universe. The IOTA blockchain is also different because it uses nodes, instead of miners, to validate transactions. This practice allows for zero-fee transactions, which is why the IOTA blockchain is popular for microtransactions for those seeking to move small amounts of money through crypto.
Helping crypto gain a foothold in the finance world are firms like CME Group Inc. (NASDAQ: CME), the Illinois-based derivatives exchange that accepts crypto trades on the platform. CME Group Inc. (NASDAQ: CME) recently launched micro bitcoin futures that have been a roaring success over the past few weeks, crossing 1 million contracts earlier this month.
At the end of the first quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in CME Group Inc. (NASDAQ: CME), up from 58 the preceding quarter worth $2.2 billion.
In its Q1 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and CME Group Inc. (NASDAQ: CME) was one of them. Here is what the fund said:
“CME has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
3. Theta Fuel
Theta Fuel is the native coin used on the Theta blockchain system. It is ranked third on our list of 10 best cryptocurrencies to invest in according to Reddit. Over the years, Theta Fuel has made a name for itself in the video streaming industry, becoming the partner coin to many platforms in this regard. The blockchain markets itself as the only end-to-end infrastructure for decentralized video streaming. Theta Fuel is cheaper in price than other coins but has explosive growth potential in the near term as more firms experiment with video streaming.
Another solid bet in the crypto marketplace is Mastercard Incorporated (NYSE: MA), the New York-based payments processing firm that has started integrating crypto onto the electronic payments solutions it offers, such as credit cards. Mastercard Incorporated (NYSE: MA) recently launched a crypto-focused card in collaboration with the Gemini Exchange.
Out of the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE: MA) with 5.8 million shares worth more than $2 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE: MA) was one of them. Here is what the fund said:
“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”
2. Dogecoin
Dogecoin is placed second on our list of 10 best cryptocurrencies to invest in according to Reddit. It is a crypto payments system created by Billy Markus and Jackson Palmer in 2013. The ironic thing about the popularity of Dogecoin, which has crossed $54 billion in market capitalization over the past few months, is that the currency was created as a joke. However, due to the decentralized nature of the blockchain ecosystem, the hype around the coin has led to a dramatic increase in value. Dogecoin is one of the most popular coins on Reddit.
The rise of memecoins like Dogecoin has been facilitated in large part by celebrities like Elon Musk, the eccentric billionaire and chief of Tesla, Inc. (NASDAQ: TSLA), the California-based EV maker. Tesla, Inc. (NASDAQ: TSLA) has been bullish on the crypto industry and was one of the first mega cap firms to accept crypto as payment for product sales.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Tesla, Inc. (NASDAQ: TSLA) with 24.4 million shares worth more than $16.3 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
1. AMP
AMP is ranked first on our list of 10 best cryptocurrencies to invest in according to Reddit. AMP is a cryptocurrency that uses the Ethereum blockchain to make payments on the Flexa Network. Using the coin, holders can make a number of different types of transactions, including conversion to fiat, digital payments, loans, and property sales, among others. AMP is moderately priced compared to coins like Bitcoin, Ethereum and dozens of others, but has significant growth potential.
Helping crypto make the leap from a concept to the real world are firms like NVIDIA Corporation (NASDAQ: NVDA), the microchip maker from California. NVIDIA Corporation (NASDAQ: NVDA) products are used in crypto mining operations around the world.
At the end of the first quarter of 2021, 80 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in NVIDIA Corporation (NASDAQ: NVDA), down from 88 the preceding quarter worth $8.6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ: NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 10 Best Nickel Stocks to Buy Now.
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Disclose. None. 10 Best Cryptocurrencies to Invest in According to Reddit is originally published on Insider Monkey.
