10 High Risk, High Reward Cryptocurrencies to Buy According to Reddit

Published November 15, 2021 at 2:46 pm EST Updated September 7, 2026 at 1:48 pm EDT

In this article, we discuss the 10 high risk, high reward cryptocurrencies to buy according to Reddit.

The skepticism around cryptocurrencies in particular and blockchain technology in general is largely fueled by the volatility often associated with trades of digital assets. The case of Bitcoin, the most popular cryptocurrency that touched an all-time high of $68,950 earlier this month before falling 10% in the following hours, illustrates this quite well. Even though experts believe that there might be a correlation in the prices of cryptocurrencies and the performance of the benchmark S&P 500, solid evidence for this still seems to be lacking.

Crypto enthusiasts claim the coin rallied on the back of inflation concerns in the United States following the release of the latest Consumer Price Index scores which show a 6.2% year-over-year increase in prices. Several investors see Bitcoin as a hedge against inflation, placing it above gold in monetary value. Billionaire Ray Dalio, one of the most successful hedge fund managers of 2020, has compared the coin to “digital gold” and revealed earlier this year that he owns some Bitcoin as well.

Cryptocurrencies are gaining legitimacy around the world, with countries like El Salvador even adopting the coin as legal tender. There is little doubt that the sector is a high risk, high reward one within the finance world, largely fitting the investing philosophy of retail traders, a dominant marketforce. Some of the top stocks to consider for the crypto economy include NVIDIA Corporation (NASDAQ:NVDA), Mastercard Incorporated (NYSE:MA), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.

Our Methodology

These were picked from a careful assessment of comments published on different Reddit forums over the past few weeks. The details of each cryptocurrency are mentioned alongside a discussion around top companies working in the sector to provide readers with some context for their investment decisions.

The hedge fund sentiment around the stocks was calculated using the data of 873 hedge funds tracked by Insider Monkey.

Why pay attention to hedge fund holdings? 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 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). 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.

High Risk, High Reward Cryptocurrencies to Buy According to Reddit

10. Kadena

Kadena is a cryptocurrency that uses a proof-of-work blockchain network. The network is energy consuming and partly the reason why people are hesitant about investing in Bitcoin, which also uses the same system. However, Kadena uses a mechanism known as “braided chains” to improve the efficiency of the platform. Using this method, Kadena can process 480,000 transactions per second. The coin has a market cap of $3.6 billion.

The mainstreaming of coins like Kadena has been made possible in large part by crypto initiatives from firms like Visa Inc. (NYSE:V), the California-based payments company.

At the end of the second quarter of 2021, 162 hedge funds in the database of Insider Monkey held stakes worth $27 billion in Visa Inc., down from 164 in the preceding quarter worth $26 billion.

Just like NVIDIA Corporation, Mastercard Incorporated, and Alphabet Inc., Visa Inc. is one of the stocks that hedge funds are buying.

In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:

“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. Polkadex

Polkadex is a cryptocurrency that operates on a decentralized, peer-peer DeFi ecosystem. It has a market cap of $67 million and is presently trading at around $21 per coin. It is also the currency of the Polkadex exchange, which offers features such as high frequency trading, NFTs, new token generation, and forkless updates. The exchange has the capability to process 500,000 transactions per second.

As cryptocurrencies explode in popularity, one of the largest cheerleaders of the new technology has been Square, Inc. (NYSE:SQ), the digital payments company.

At the end of the second quarter of 2021, 94 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Square, Inc., up from 92 the preceding quarter worth $9 billion.

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. Aurory

Aurory is the cryptocurrency of a gaming platform which uses a play-to-earn system. The game allows players to collect NFTs and tokens and use them to battle with other players. The game will soon be available on the Solana blockchain network, a fast-growing ecosystem in the crypto world. Aurory has a market cap of $161 million. The currency was founded by Yann Penno and Paul Vadillo. The coin will soon be available for trading on Serum, a crypto exchange platform.

Coins like Aurory are becoming integrated into the digital payments ecosystem by firms like PayPal Holdings, Inc. (NASDAQ:PYPL), the California-based financial technology platform.

At the end of the second quarter of 2021, 143 hedge funds in the database of Insider Monkey held stakes worth $16.3 billion in PayPal Holdings, Inc., the same as in the preceding quarter worth $14.7 billion.

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. Aldrin

Aldrin is a cryptocurrency built on the DeFi ecosystem. It has a market cap of $35 million. The currency aims to make crypto more accessible for businesses. It was founded by Hisham Khan. MEXC Global is one of the most active crypto exchanges with regards to the trading of the Aldrin coin. It is presently trading at around $5 per coin. One of the ways the currency aims to make the technology more accessible is by building crypto apps that scale.

6. Netvrk

Netvrk is a cryptocurrency that can be used to buy and sell assets within different virtual reality worlds. It is trading at around $5.1 per coin and has a market cap of $157 million. KuCoin, Hotbit, and CoinBene are some of the exchanges where the coin can be traded. The currency is aimed at creators, making it easier to create, share and monetize digital content.

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.

At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Facebook, Inc., up from 257 in the preceding quarter worth $40 billion.

Alongside NVIDIA Corporation, Mastercard Incorporated, and Alphabet Inc., Facebook, Inc. is one of the stocks attracting the attention of elite investors.

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. Phantasma

Phantasma is a cryptocurrency favored by gamers and NFT enthusiasts because of low minting and transaction fees as well as the use of a smart technology that will make the currency the first fully carbon neutral coin in the world. This tech, called smartNFTs, can change according to conditions, allowing developers of games to make in-game changes, something not possible with traditional NFTs.

Investors should also keep Alphabet Inc., the parent company of internet search engine Google, on their radar for the crypto space.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. with 2.9 million shares worth more than $7.3 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. Kalao

Kalao is a cryptocurrency based on the Avalanche blockchain. The network collects different NFTs in a single marketplace, eliminating the need for jumping from one digital platform to another. It is also developing NFTs for the 3D virtual reality experience. The coin has a market cap of $22 million and is presently being traded at around $1 per coin. Even though the currency is designed for VR, it can work on other platforms as well.

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.

At the end of the second quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $2.6 billion in CME Group Inc., up from 60 the preceding quarter worth $2.3 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. Altura

Altura is the cryptocurrency of the Altura platform that allows game developers to transact in smartNFTs. These NFTs can be minted and distributed within games. The platform aims to build an easy-to-use interface for the creation of such smartNFTs. There are a maximum of 1 billion Altura coins out of which 220 million are in circulation while 450 million are locked in vesting contracts. Around 330 million will be released to private investors over time.

Another solid bet in the crypto marketplace is Mastercard Incorporated, the New York-based payments processing firm that has started integrating crypto onto the electronic payments solutions it offers, such as credit cards.

Among the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated with 5.8 million shares worth more than $2.1 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. Atari

Atari is a cryptocurrency based on the Ethereum blockchain. The coin was designed by gaming firm Atari specially for the interactive entertainment industry. It became available for public trading in October 2020 after three private sales rounds. Atari is developing a suite of games, entertainment products, and casinos that will make use of the Atari coin for transactions. The platform also markets skill-based video games played for Atari tokens.

The rise of coins like Atari 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.

At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc., down from 62 in the previous quarter worth $10 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. Paribus

Paribus is a cryptocurrency powered by the Cardano blockchain. It has a market cap of $12 million. The coin has huge potential moving forward as the platform on which it operates is designed for evolution along with the changes in crypto assets over time. Some of the features offered by the platform include NFT collateral-based loans, NFT staking, as well as token profit-sharing at low fees and high speeds.

Helping crypto make the leap from a concept to the real world are firms like NVIDIA Corporation, the microchip maker from California.

At the end of the second quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $9 billion in NVIDIA Corporation, up from 80 the preceding quarter worth $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.”

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