All cryptocurrencies other than Bitcoin are called Altcoins. The purpose of altcoins is to leverage the crypto network that builds on top of open-source blockchain technology, providing alternative use cases to the traditional financial system and big tech companies.
The most popular reason for trading altcoins is the possibility of a higher return on investment in the short term. However, finding the best altcoins can be tricky, as there are so many to choose from. So go on and learn more about the top 5 new altcoins that can give multifold returns in the future.
Yearn Finance (YFI)
Yearn Finance is our top pick for the best altcoins that can give multifold returns in the future. This project focuses on leveraging decentralized finance to lend out Peer-to-Peer loans without going through any banks.
Yearn Finance offers these services through a range of products and features.
- APY (Annual Percentage Yield) - To determine the interest rates across different lending protocols
- Earn - This feature identifies the highest interest rates users can earn by lending out different assets
- ZAP - A tool that bundles multiple trades, reducing costs & labor.
All these activities take place in the Yearn Finance ecosystem using YFI - the native digital token. Users can earn YFI tokens by locking their crypto holdings on the Yearn Finance blockchain.
This is a common practice known as “Yield Farming” - earning more cryptocurrency by locking up your existing assets in DeFi protocols.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Solana (SOL)
Solana (SOL) is a popular blockchain network with high scalability and security. It is known to have faster transaction rates than Ethereum and lower gas fees.
Its network also includes an NFT marketplace called Solanart, which provides NFT minters access to its low-cost services. OpenSea, one of the largest marketplaces for NFTs, has just decided to begin testing Solana NFTs.
Recently, Solana Pay was announced, allowing customers to pay merchants on the Solana blockchain using Solana or a stable coin like USDC — which is pegged to the US dollar. Fees are pennies, posing a threat to more expensive financial networks such as Visa and Mastercard, which charge between 2% and 3% on each transaction.
Solana is also widely accepted by various sites and individuals, making it Ethereum’s biggest competitor. Although affected by the dip, SOL remains one of the best 5 new altcoins that can give multifold returns in the future.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Uniswap (UNI)
When looking for the best DeFi coins to buy, Uniswap is one of the top projects that come to mind.
In its essence, it is a protocol that allows buyers and sellers to swap ERC 20 tokens without an exchange or an intermediary. Most centralized exchanges require buyers and sellers to provide liquidity to conduct P2P transactions, which can be challenging for even the biggest markets.
Uniswap does not rely on traditional bid/ask order books to create a safe and fair trading space for the generation of sufficient levels of liquidity. On the contrary, it uses an AMM – or automated market maker model.
The AMM model determines altcoin prices based on various factors, such as demand, volume, and market capitalization. In addition to decentralized trading services, Uniswap also gives you the opportunity to earn a yield on your idle altcoins.
For various such reasons, UNI is one of the 5 new altcoins that can give you multifold returns in the future.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Sandbox (SAND)
The next digital currency to consider from our list of the best new altcoins is the Sandbox. In a nutshell, this project specializes in the Metaverse, whereby players from all over the world can explore the Sandbox ecosystem while communicating and networking.
Within the Sandbox Metaverse, users can create and personalize their own character, which can then be used to compete in play to earn games. This means that when certain tasks are accomplished, users can earn the platform’s in-game currency – SAND. Notably, Sandbox is also home to an abundance of NFTs.
For instance, the Sandbox allows you to use your SAND tokens to buy plots of land. You can then build property on this land and attempt to sell the respective NFT on the open marketplace. As a prime example of how lucrative this can be, a Sandbox user recently sold 100 virtual islands for the crypto-equivalent of $4.2 million.
The SAND altcoin last peaked in November 2021, reaching a price of over $8.40. This translated into gains of over 16,000% in just one year. However, like most altcoins in this industry, SAND has since retreated in value, making now a good time to invest in it.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Decentraland (MANA)
If you have an interest in the future of Metaverse coins, then you might have liked the sound of the Sandbox, which we analyzed above. Another metaverse-based crypto project, Decentraland (MANA), is also one of the best altcoins that can provide multifold returns in the future.
This super-popular project, which was founded in 2017, is now used by thousands of people each and every day. These numbers continue to grow, and perhaps, most importantly, so does the number of transactions being conducted in the Decentraland ecosystem. More specifically, Decentraland has facilitated some huge digital real estate trades in recent months.
Every transaction executed within the Decentraland ecosystem is conducted in the platform’s native altcoin – MANA, which has performed very well over the years.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
In Conclusion
If you analyze your budget, goals, and risk appetite, then any of these 5 new altcoins can earn your multifold returns. Therefore do your research and always remember to diversity your portfolio to make the most of your investments.
Read More:
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