It is always best to look into low-cap altcoins to make the most of the cryptocurrency market. That's because they usually have a higher upside potential than big-cap cryptocurrencies, which means a higher ROI.
However, things are not all rosy in the low-cap section of the market. This is where you are also likely to find rug pulls and all sorts of scams. That's why extra due diligence is needed.
This shouldn't discourage you from investing, though. In this article, we have researched and compiled a list of 12 best low-cap cryptocurrencies to invest in 2023.
Not only have we listed them, but we have also taken the time to explain why these cryptocurrencies are worth adding to your portfolio.
Ready? Let's get started.
A Glance At The 12 Best Low-Cap Cryptocurrencies To Invest In 2023
Here is a quick list of the best low-cap cryptocurrencies to invest in today.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
An In-Depth Look At The Best Low-Cap Cryptocurrencies To Invest In 2023
Let's review each of them in-depth to help you make an informed choice on which of the above cryptocurrencies is in line with your investment philosophy.
1. Loopring (LRC) – Ethereum layer-2 solution is making it easier to trade ERC-20 tokens
With the Ethereum merge now complete, layer-2 solutions are set to gain much traction. One of the Ethereum layer-2 solutions that have the potential to grow is Loopring.
Loopring is a powerful new token that promises to revolutionize the world of cryptocurrency trading. Designed as an open-source, non-custodial exchange protocol, Loopring allows users to build decentralized exchanges on top of it and offers enhanced privacy via zero-knowledge proofs (ZKPs). With these innovative features at its core, Loopring has already gained a strong following among crypto enthusiasts.
Whether you're looking to get started with crypto trading or are simply looking for an efficient and user-friendly platform for your existing transactions, Loopring is a perfect choice.
Despite its potential, Loopring is a pretty low-cap cryptocurrency. Its market cap currently stands at only $368 million. This means there is a lot of room for growth as adoption grows. The same can reflect in its price over time.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
2. Oasis Network (ROSE) – A layer-1 chain for building private smart contracts
Next on the list of low-cap cryptocurrencies to invest in 2023 is Oasis Network. The Oasis Network is a new platform that utilizes cutting-edge blockchain technology to provide secure and private financial services for users worldwide. Designed with both security and privacy in mind, this blockchain platform offers a decentralized solution for transferring money, making payments, and performing other essential financial transactions.
Additionally, the Oasis Network promotes a more responsible economy by giving users full control over their own data. By leveraging state-of-the-art cryptography and anonymization techniques, this blockchain platform enables users to interact with all aspects of finance transparent yet securely.
Oasis is a vital player in the web3 ecosystem, helping power the next generation of online platforms and applications. With its cutting-edge technology and robust network of support from industry leaders, Oasis is well-positioned to help scale up and evolve Web3 as it grows into maturity. The recent announcement of the $235 million Ecosystem Fund will provide critical support for developers looking to build on this emerging network.
And with collaborators like BMW Group and Meta, Oasis has all the tools it needs to become a trusted leader in data governance and responsible data use. Whether you're an enterprise looking for high-quality privacy protection or a developer working on the next big idea for web3, Oasis has everything you need to succeed.
Despite all these developments and potential for growth, Oasis Protocol only has a market capitalization of $305 million. This gives ROSE a lot of upside potential going into the future.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. RavenCoin (RVN) – DeFi protocol that is known for its high rewards to liquidity providers
RavenCoin is a digital network that allows users to securely and efficiently transfer assets from one party to another. Unlike typical centralized platforms, RavenCoin is built to specifically handle the transfer of assets quickly and securely. This makes it an ideal platform for various applications, from commercial transactions to digital asset management.
Moreover, RavenCoin is decentralized and publicly available, meaning there are no third-party intermediaries involved in any transactions. Ultimately, this makes RavenCoin a powerful tool for businesses and an incredibly user-friendly platform for individuals.
RavenCoin also has the advantage of being able to stay decentralized. It was developed to improve upon the original Bitcoin code. It features a modified issuance schedule, reduced block time and coin supply cap, and an innovative mining algorithm designed to mitigate centralization issues in traditional Bitcoin mining. The block reward for RavenCoin is 5,000 RVN, which is 1,000 times higher than that of Bitcoin. This results in faster transaction times and greater overall liquidity for the currency.
Additionally, the new block time of one minute helps keep things moving quickly, while the coin supply has been capped at a huge 21 billion RVN to reduce scarcity and increase value over time effectively. Overall, RavenCoin is a promising fork of the popular cryptocurrency that offers some innovative solutions to commonly-experienced issues within the crypto sphere.
With all these factors at play, there is no doubt that RavenCoin is one of the best.
4. NEO (NEO) – High potential cryptocurrency for Dapps development
The NEO platform is a revolutionary new blockchain that leverages the power of smart contracts and decentralized digital assets. Unlike traditional cryptocurrencies, which typically rely on proof-of-work or proof-of-stake algorithms for security, NEO uses a unique dual consensus system. This allows it to achieve high throughput and heavily discounted transaction fees while ensuring its decentralized nature.
At its core, NEO is all about creating a smart economy. By leveraging cutting-edge blockchain technology and applying it to the existing global economic landscape, NEO aims to transform industries ranging from healthcare and logistics to identity management and the financial sector. And with its open-source codebase and governance model featuring ownership interests and voting rights for coin holders, it has become a truly decentralized network that empowers users worldwide.
To support this ambitious mission, the NEO team has developed several key initiatives based on their beliefs in community cooperation and technological innovation. These include the City of Zion, NEON wallet, NEX exchange, Ontology network expansion module, and Academia layer development toolset, among others. It also has partnerships with companies like Microsoft Azure Blockchain Workbench NGC Enigma Umbra, among others! Truly an exciting platform that holds great promise for the future of blockchain technology and beyond.
Despite its capabilities, NEO has underperformed for some time, and its market cap is tiny compared to the likes of Ethereum. Therefore, the upside could be huge as more people know its power. That's why we have included NEO in our list of undervalued low-cap cryptocurrencies to buy in 2023.
5. NEM (XEM) – Low-cap cryptocurrency helping corporations develop on the blockchain
NEM is a powerful and innovative platform for building decentralized applications and services. With its peer-to-peer architecture, NEM aims to serve as the tech backbone for companies in the digital economy.
One of the key aspects of NEM that distinguishes it from other platforms is its focus on usability. Its comprehensive programming interface allows businesses of all sizes to quickly and easily create custom functions and Dapps that run on top of the blockchain. This makes it possible for companies to build smart contracts, manage assets, create digital identities, launch ICOs, and much more using NEM's advanced technology.
Beyond just being easy to use, NEM also prides itself on its security and robustness. Its Proof-of-Importance algorithm effectively rewards users who make active contributions while keeping off bad actors. And with features like multi-signature accounts and encryption algorithms built directly into the core protocol, NEM is one of the most secure chains available today. Overall, if you're looking for a reliable and robust platform for building your business on top of today's emerging technologies, there's no better choice than NEM.
As an investment, NEM easily stands out for its low market capitalization of just $350 million. If the price starts to move, NEM could emerge as one of the best low-cap cryptocurrencies to invest in today. That's because once the market turns bullish again, it will have a lot of room for growth.
6. QTUM (QTUM) – Smart contracts network that combines the best of Bitcoin and Ethereum
Next on the best low-cap cryptocurrencies to invest in QTUM. Qtum is a blockchain platform that combines the best of both Bitcoin and Ethereum. With its robust yet flexible functionality, Qtum provides an ideal base for developing decentralized applications and smart contracts. On top of that, QTUM started supporting DeFi applications in 2021. With this, QTUM now has even greater potential for growth in the future as it attracts Dapp's developers for the new economy.
Whether you're a developer looking to build on Qtum or are just interested in using one of the many existing tokens on this thriving platform, there are plenty of reasons to get excited about what Qtum has to offer.
Despite its many exciting possibilities, QTUM is a pretty low-cap cryptocurrency compared to Bitcoin and Ethereum. This means once the market starts to move again, its potential ROI could be significantly higher than the bigger cryptocurrencies.
7. Synthetix (SNC) – Fast-growing DEX with multiple tradable assets
Synthetix is an innovative protocol that allows for the creation and trading of synthetic assets on Ethereum. By harnessing the potential of Ethereum's blockchain, Synthetix enables users to issue their own design financial assets easily and trade them freely in a decentralized marketplace. This system effectively acts as a platform for derivatives trading, allowing investors to gain exposure to different markets without having to go through the hassle and risk of buying and holding actual assets. Whether you're looking to hedge your portfolio or gain some exposure to new markets, Synthetix promises to be a powerful tool for investors everywhere.
The best part is that investors are highly receptive to trading on Synthetix. This is mainly due to the vast array of assets that they can trade. You can trade digital currencies like Bitcoin or fiat currencies like the Japanese Yen, commodities like gold, and stocks. The innovative Synthetix network also brings together an active and diverse community of crypto traders and finance enthusiasts, providing an excellent platform that caters to your individual needs and interests. Whether you are looking for expert advice on trading strategies or want to connect with others who share your passion for investing, Synthetix has everything you need to succeed in today's fast-paced global financial climate.
Despite all these strengths, Synthetix is still a relatively low-cap cryptocurrency. With its market share growing and the broader crypto market still in the growth phase, Synthetix is undoubtedly one of the best low-cap cryptocurrencies to invest in 2023.
8. Chiliz (CHZ) – Decentralized platform that is bringing blockchain to the sports world
The blockchain-based sports platform Socios has quickly become a favorite among sports fans worldwide. Powered by the Chiliz token, CHZ, this innovative platform gives fans a unique opportunity to engage with their favorite teams and players. With a host of fan tokens created specifically for different sports teams, Socios is truly revolutionizing the world of sports entertainment. And what's more, thanks to its low market cap, CHZ is one of the best options for crypto enthusiasts looking to dip their toes into this exciting and dynamic space.
Chiliz has already been adopted by top teams like Barcelona and AC Milan, which has laid the groundwork for success. With these top teams providing the example, it seems many more will follow suit over the coming months and years. After all, when building thriving fan bases and growing revenue streams, few things are as important as optimizing engagement. And Chiliz makes this process easier than ever before.
Despite all these potential benefits to Chiliz, is still a low-cap cryptocurrency. As adoption continues to grow, Chiliz stands out among the best low-cap cryptocurrencies to invest in 2023.
9. ZCash (ZEC) – Privacy coin that also has a low regulatory risk
Zcash is a powerful new digital currency that offers many unique features. Strong privacy features allow users to transact efficiently and securely, with low fees and without sacrificing their anonymity. Unlike other currencies that rely on complex algorithms to encrypt transactions, Zcash uses cutting-edge cryptographic techniques to ensure that every transaction is highly secure. What's more, thanks to its decentralized design and open governance model, Zcash has the potential to become one of the most innovative and widely used digital currencies on the market today. Whether you're looking for fast and affordable payments or robust privacy protections, Zcash is hard to beat.
When it comes to privacy cryptocurrencies, there are many different options available. While some, like Monero, focus solely on providing users with private, anonymous transactions, others offer a blend of public and private transactions. ZCash is one such cryptocurrency that falls into the latter category.
While ZCash provides the advantages of encryption and anonymity, it also has the option of non-private transactions. This allows users to choose between maximum privacy or minimal compliance, depending on their needs. And when it comes to dealing with regulators and other authorities that may be interested in tracking cryptocurrency use, this feature can be invaluable. By allowing users to opt-out of privacy at will, ZCash reduces the risks associated with crackdowns from government agencies or other outside entities.
Therefore, while ZCash comes with certain risks and trade-offs compared to other forms of cryptocurrency, its ability to offer a choice between privacy and disclosure makes it a valuable asset for those who need flexibility in managing their currency usage. These advantages, coupled with its relatively low price, make it one of the best low-cap cryptocurrencies to invest in 2023.
10. ApeCoin (APE) – Popular cryptocurrency associated with hot NFTs
ApeCoin is one of the most exciting low-cap coins on the crypto market, and it's a great choice for any investor looking to get in potentially high ROI. Not only is ApeCoin built on the Ethereum blockchain, which offers fast, secure transactions with minimal fees, but its market capitalization currently stands at over $1.5 billion.
More importantly, though, ApeCoin is an integral part of the larger Bored Ape Yacht Club NFT community. All Ape Coin holders have the right to participate in decisions about the ApeCoin DAO. This is a big deal because it means you have a say in decisions that could impact the long-term value growth of Ape Coin. With so much potential for growth and innovation, anyone who wants to be a part of an undervalued growth cryptocurrency should consider adding APE to their portfolio.
The best part is that the Otherside Metaverse that is associated with ApeCoin is on a growth trajectory. The Otherside Metaverse is experiencing rapid growth, with many big names and popular brands entering the platform. In early August 2022, Gucci announced that it was now accepting APE tokens as payment at 70% of its retail outlets across the United States.
Furthermore, the Bored Ape Club's Web3 metaverse game, Otherside, has become one of the most anticipated offerings in the industry. On top of this, world-renowned rappers Snoop Dogg and Eminem recently performed inside the Otherside metaverse, collaborating with MTV for their music video and allowing fans to experience their shows through Ape Avatars. It clearly indicates that the Otherside Metaverse has a bright future ahead of it. By extension, this means the future of ApeCoin is bright.
11. EOS (EOS) – Layer-1 chain that prides itself on scalability and low fees
EOS.IO is a powerful new blockchain protocol aiming to change how we think about transacting online. Unlike traditional cryptocurrencies, which rely on fees to process transactions, EOS.IO claims to be free.
Not only does this allow users to conduct fast and seamless transactions, but it also makes EOS.IO an ideal platform for deploying smart contracts and decentralized applications. Perhaps most impressively, this cutting-edge protocol can process millions of transactions per second – far outstripping what other similar platforms can manage. With so many exciting features and capabilities, it is no wonder that EOS.IO has quickly become one of the most talked-about blockchains in the world today. Whether you are interested in exploring its potential for yourself or getting up to speed with the latest technological innovation, EOS.IO is well worth your attention.
While EOS remained dormant for years, it seems to have come back to life in 2022. This follows new blockchains like Telos WAX and UX Network choosing to manage transactions using EOS.
If this momentum continues and at EOS's current low market cap, the odds are that it could rally in the long term. This makes EOS one of the high-potential cryptocurrencies to invest in 2023.
12. IOTA (MIOTA) – A highly scalable token designed for the IoT market
IOTA is a cutting-edge blockchain technology that has been designed with a focus on enabling the secure and instant transfer of data between machines and even people and machines.
Unlike other distributed ledgers, which rely on complex and often costly consensus algorithms to guarantee transaction validity, IOTA relies on a system of decentralized ledgers across multiple nodes. This innovative approach allows transactions to be confirmed instantly without the need for lengthy processing times or large amounts of computing power. In addition, because there are no fees associated with sending data and value across the IOTA network, it enables a wide range of applications and use previously impossible cases. Whether you're a small business owner interested in streamlined payments, or a data scientist looking for seamless acquisition of high-quality datasets, IOTA offers an exciting new way to unlock value from the emerging internet of things.
What makes IOTA a high potential low cap cryptocurrency to invest in 2023 is the possible market size. This cryptocurrency is designed to be used across various devices and applications, giving it a wide range of potential use cases. Some examples include facilitating secure payments between smart appliances or machines, powering smart metering systems that measure energy consumption in real-time or even enabling new forms of data exchange between autonomous vehicles.
Whatever the application, it's clear that IOTA is set to play a major role in our increasingly connected world. With its unique architecture and innovative vision, this technology has what it takes to become an essential part of our digital future. Given that its price is massively depressed after the prolonged 2022 cryptocurrency market, IOTA has a good future.
What Is Meant By Low Cap Cryptocurrency?
Many people mistakenly believe that the price of a cryptocurrency token is an accurate measure of the project's underlying value and potential for growth. Contrary to popular belief, the market capitalization of a crypto project is far more indicative of its true value than its token price alone.
The calculation for the market cap is quite straightforward. It is simply the price of a crypto token multiplied by the circulating supply. This gives us a measure of all coins in circulation, accounting for both liquidity and investor interest when assessing the value of a project. By taking both these factors into account, we can gain a much clearer picture of how well a crypto project is performing and where it may be headed in the future. Thus, rather than focusing solely on the price of a given token, investors would do well to take note of market cap as an important indicator of success in the volatile world of cryptocurrencies.
It is also noteworthy that while high-cap cryptocurrencies offer more promise in terms of long-term stability, the lower risk means a lower potential for value growth. That's where low-cap cryptocurrencies (usually with a market cap of $2 billion or less) come into the picture. With low-cap cryptocurrencies, the volatility is higher, and just a slight price increase can send the price rocketing. An investor looking for maximum gains would be better off looking for the best low-cap cryptocurrencies to invest in 2023. The risk is higher, but the potential reward makes up for it.
How To Find The Best Low-Cap Cryptocurrencies
As we have mentioned above, low-cap cryptocurrencies have a higher risk-reward ratio. But it is also in the low-cap side of the market that scams and low-quality cryptocurrencies thrive.
So, how do you choose the best low-cap cryptocurrencies to invest in without unnecessarily exposing yourself?
To help you out, check out the guide below on selecting the best low-cap cryptocurrencies to invest in 2023.
Scrutinize the roadmap
When investing in low-cap cryptocurrencies, one of the most important things to consider is the roadmap. A cryptocurrency with a clear plan for development and growth over time, with a great deal of potential for sustained engagement and use, is usually more attractive.
The best roadmaps provide an overview of current goals, accomplishments, and future milestones, allowing investors to track each crypto project's progress easily. A good roadmap should also have a clear timeline with specific dates for upcoming events or releases so that investors can stay updated about significant developments. Overall, having access to this kind of information helps empower investors by assisting them to make informed investment choices based on solid evidence. Ultimately, this can lead to more successful investments over time, primarily when investing in the low-cap segment of the cryptocurrency market.
Have a clear goal
There are various factors that traders must consider when investing in cryptocurrency, particularly in terms of the time frame that they intend to hold the tokens. Extra volatility is likely to be an advantage for those who wish to buy and sell in the short term as it gives them more opportunities for profit. Conversely, long-term investors will typically look for low-cap cryptos with strong scalability and growth prospects since these provide more sustainable value over time.
Thus, when researching the best low-cap cryptos for their portfolio, investors must decide whether they are interested in trading or holding. Factors such as token utility can also determine whether a given crypto investment is a good fit for short-term trades or long-term growth potential. Ultimately, different traders will have different goals and risk tolerances, so it is essential to carefully consider one's investment strategy before making any major decisions about which cryptocurrencies to invest in.
Look at community engagement
When buying the best low-cap cryptos to invest in 2023, it is essential to look beyond the underlying technology or the token's utility. While these aspects are essential for evaluating a project's long-term viability, the community of supporters is also a key indicator of its potential success. After all, a strong community is an invaluable resource for creating awareness of the project. This can translate into increased price action as people spread the word about this project and encourage others to learn about and engage with it. These efforts might include initiatives like airdrops, which can generate buzz around a cryptocurrency and also allow current investors to participate in growing its value. Moreover, a crypto project can reach more investors by building a large community of new users. Therefore, those looking at low-cap projects should devote equal attention to their technical merits and their enthusiastic communities if they want to get the full picture of what these coins offer.
For instance, when Shiba Inu first launched in 2020, few people knew about it. However, as the community grew, it created a buzz that triggered FOMO in 2021. By the end of 2021, Shiba Inu had become one of the best-performing altcoins ever created.
Are Low-Cap Cryptocurrencies Good Investments?
Up to this point, you have an idea of the best low-cap cryptocurrencies to invest in 2023. You also have a good idea of how to choose the best ones. But are low-cap cryptocurrencies worth it compared to Bitcoin or Ethereum?
Here are some of the main reasons you might want to add undervalued low-cap cryptocurrencies to your portfolio today.
They have exponential growth potential
Low-cap cryptocurrencies are often considered to be high-risk investments due to their relatively young age and unpredictable nature. These projects are often under development, and their future success is unknown. Many small-cap cryptocurrencies have yet to build a name on the market. They could rapidly become worthless if they don't attract users and investors as their founders had anticipated.
Despite these risks, low-cap cryptocurrencies can also hold significant potential for investors. Because these projects are typically still in the testing phase, there may be room for growth and significant returns on investment if they succeed.
However, investors must always remember that these assets are inherently risky and should only ever invest what they can afford to lose in a trading position. Regardless of whether you decide to take a risk on a low-cap crypto asset or not, it is essential to take a prudent approach and maintain careful control over your portfolio at all times.
They have multiple opportunities for day trading
Day traders enjoy trading low-cap cryptocurrencies. That's because they tend to be very volatile. Compared to large-cap cryptocurrencies like Bitcoin, these assets are often more likely to experience surges, especially on the news, such as being listed on a large exchange. It's common for a small-cap cryptocurrency to rally by 100% or more in a span of 24 hours.
At the same time, however, these assets may also experience steep declines in price following a minor setback or bear market trend. For this reason, those looking to profit from volatility should be comfortable with taking risks. But if you're willing to ride out fluctuations and hang on through tough times, then low-cap crypto assets can be an exciting opportunity for short-term trading success.
Ultimately, your best bet is to carefully evaluate a range of low-cap coins and choose those that seem most promising based on your knowledge and intuition. You could find yourself sitting on a goldmine of profits from day trading low-cap cryptos with diligence and careful research.
Where To Buy The Best Low-Cap Cryptocurrencies To Invest In 2023
Any of the top cryptocurrency exchanges today are okay for buying low-cap cryptocurrencies in 2023. However, from our analysis, we believe that eToro is the best among them.
eToro – Top Broker For Buying Low-Cap Cryptocurrencies
Since its inception in 2007, eToro has established itself as one of the most trusted online brokers. With over 20 million, eToro has become a go-to destination for investing in low-cap cryptos. Moreover, it also offers opportunities to invest in large-cap cryptocurrencies, making it a truly comprehensive platform for every level of crypto trader. Whether you're just starting out or are an experienced investor, eToro is the place to be if you want to explore the world of cryptocurrencies and maximize your potential returns.
In addition to its popularity, eToro is also a highly regulated broker. Regulatory agencies worldwide, such as the SEC, and FCA, keep a close eye on eToro to ensure that all customers are protected. Thanks to this oversight, investors can feel confident putting their money in eToro and know they will be treated fairly.
As an investor, staying safe and secure is paramount. That's why eToro provides investors with several tools to help keep their assets protected. The eToro Money Cryptocurrency Wallet is one such tool, offering state-of-the-art secure custody of your tokens. eToro has also made sure that adding tokens to the wallet is easy. And best of all, the wallet app allows you to stay in complete control of your funds at all times. Whether you're looking to guard against potential cyber threats or need a secure place to store your assets after making a big trade, the eToro Money Cryptocurrency Wallet is the perfect solution.
This article has an in-depth look at the best low-cap cryptocurrencies to invest in 2023. While all of them have a lot of growth potential, we believe Loopring holds the most promise. That's because with the Ethereum merge complete, a lot more people will find it viable to trade Ethereum-based tokens. Loopring makes this efficient and stands out in terms of potential value appreciation.
eToro – Best Platform To Buy Cryptocurrencies
Open an account with eToro, deposit some funds with USD, and finally – buy cryptocurrencies for just $10.
What tokens qualify as low-cap cryptocurrencies?
The general consensus is that any cryptocurrency with a market below $2 billion is a low-cap cryptocurrency.
Does token supply matter?
Yes. When evaluating whether a cryptocurrency is low-cap, keep the price of the token supply in mind. That's because it plays into the total market cap and can help you determine whether crypto is undervalued or not.
What is the best cryptocurrency to buy low-cap cryptocurrencies?
While there are many good exchanges, we believe eToro is the best. It is regulated and has multiple low-cap cryptocurrencies to choose.