These cheap altcoins can generate high returns on your portfolio if …
After a few peaks, high euphoria and greater greed, the market experienced a flash crash that shook investors and traders. Longs were liquidated in large numbers, exit rates increased and investors reconsidered their portfolios or allocation ratios in the wake of the crash.
However, choosing the right coin in the sea of altcoins is not an easy task. While most newbies are looking for popular, cheap assets like XRP and Dogecoin that offer good entry points, having the right risk balance is ideal to reward a portfolio. This article will take a look at some of the top altcoins to see if they are good choices for a future portfolio.
Market participants are generally not so interested in price as they are in ROI, network strength, functionality, long-term growth, and the risks associated with the asset. But if you choose an altcoin with low capital – high returns, it’s really great. It is noteworthy that this rally has brought cheap coins like Algorand to the top thanks to their good performance this season.
At press time, Algorand was trading at $ 2.20 with a weekly gain of 58.84% and posted a multi-month high on September 9th that seems to be holding up well straight away even after a lightning incident. In contrast, Stellar Lumens traded at $ 0.32 and lost nearly 17.73%, while XRP was down 17.62% after the recent correction. However, MATIC shows a smaller decline of 16.49%.
The prices of these four low capitalization altcoins were impacted by the Bitcoin crash, but they all have different potential for recovery. But do these $ 2 coins offer a better ROI than higher quality coins?
The most profitable option
External factors are affecting altcoin prices more than expected, such as XRP, which fell completely prior to the SEC and Ripple lawsuits. However, the token has tremendous potential to explode if Ripple wins the ongoing lawsuit. On the flip side, Stellar Lumens, which has a similar use case to XRP in many arenas, could benefit greatly if the outcome of the lawsuit is detrimental to XRP. In any case, both XRP and XLM are quite volatile.
When it comes to allocating an appropriate portfolio amount to a coin, traders and investors generally avoid types with high volatility. For MATIC and Algorand, both show small deviations from orbit. So, if you want a mix of low and high altcoins in your portfolio, this could be a match.
If you distribute high-priced and low-priced Altcoins with the same ROI in equal parts, then the lower price type will definitely generate a higher profit. However, this is not the case with MATIC and XLM, as both have a negative ROI in both the long-term and the short-term. The weekly MATIC ROI is -19.38% and the 3-month ROI -12.48%. Meanwhile, XLM’s weekly ROI is -15.80% and its 3-month ROI is -2.36% at press time.
On the flip side, Algorand is the clear winner with a weekly ROI of + 72.25% and a three-month ROI of + 114.65%. XRP currently has a weekly and three month ROI of -15.37% and 24.19%, respectively.
When you look at volatility and ROI, XRP and Algorand will make good additions to your portfolio, but stay away from XLM. On the other hand, MATIC can be a good choice as a long-term investment due to its market capitalization and its high reliability with low volatility.
We invite you to join our Telegram for faster news: https://t.me/coincunews
According to Ambcrypto