The cryptocurrency market has seen massive growth over the last few years with a surge of cryptos like Bitcoin, Ethereum, and many more. With a fresh bull cycle in 2021, investors are curious to know which cryptocurrencies provide sufficient returns and have growth potential.
Cheap or undervalued cryptocurrencies can be considered good investments that offer high returns in the foreseeable future. According to CoinMarketCap, these coins account for more than 35% of the total cryptocurrency.
Here are the three best cheap cryptocurrencies under $5 with massive potential for growth and returns that you can consider adding to your investment portfolio.
#1: Ripple (XRP)
Ripple (XRP) is popularly known as the favourite currency among global banks. It came into the limelight at the end of 2017. Since its inception, Ripple has been the crypto with various developments in its ecosystem and several adoptions but remained highly undervalued.
Unlike other cryptocurrencies in the market, Ripple serves a different purpose. It is a centralized transaction network deployed by banks for safe and fast money transfers. Ripple Labs created Ripple to be a more scalable, less costly, and speedy cryptocurrency that makes financial systems like banks and governments more advanced and accessible for its users.
The XRP coin remains one of the most undervalued crypto assets in the world. But considering its advanced blockchain technology and unique purpose, Ripple could be a good investment option for the future. Currently, XRP sits at a price of $1.02 and is quite affordable considering other cryptos in the market.
Despite it being a cheaper cryptocurrency, investing in Ripple could offer high returns, thanks to several institutional adoptions and advancements. Several financial giants like Banco Santander (SAN) and American Express (AXP), HSBC Holdings (HSBA), JP Morgan (JPM), HDFC Bank Limited (HDB), and the Bank of America (BAC) back up Ripple with their support.
Ripple has also signed almost 300 banking and infrastructural partnerships across 40 countries. Additionally, Ripple Labs have plans to expand its use case value to smart contracts and DeFi in the coming future. Though it is an undervalued coin, XRP has successfully secured the 7th position in the CoinMarketCap ranking, with a market cap of $46 billion.
Given all these reasons, crypto enthusiasts and analysts believe that Ripple can be the perfect future for investors to get good returns with fewer investments.
Read More: How To Invest In Ripple?
#2: Cardano (ADA)
When it comes to cheap cryptocurrencies that offer high returns, it's worth mentioning Cardano. By integrating the hallmark features of both Bitcoin and Ethereum along with an integrated research approach, ADA has successfully introduced innovation into the crypto space.
ADA has its share of ups and downs in the market. With its recent upgrade and forks, it surged up all the way high, hitting an all-time high of $2.46 in May 2021. It sits in the 5th position of the CoinMarketCap ranking with a market cap of $56 billion as of writing.
Currently, ADA has a price range of $1.78, making it one of the best cheap cryptocurrencies with high return potential in the future. With its unique Ouroboros blockchain and two-layered blockchain architecture, ADA reduces the chances of network congestion, slower transactions, and higher fees.
Thanks to its recent Goguen upgrade, Cardano has seen much increase in its usage and popularity. It has finally brought in the ability to create smart contracts on the Cardano network. It will unlock new opportunities for developers as they can now start working on dApps. Therefore, the Goguen update marks a significant step in increasing ADA's value in the market.
With a fast, scalable network, cheap transactions, affordability, and a dedicated development team Cardano is eventually heading towards complete decentralization. With new upgrades and advancements in its network, ADA could be the best cheap cryptocurrency with high future potential for investors.
Check Out: Is Cardano a Good Investment?
#3: Stellar Lumens (XLM)
Creating equitable access to the global financial system is the purported goal of Stellar Lumens. It is an open-source network that acts as the peer-to-peer lender for moving money across borders, especially for individuals.
XLM is a unique cryptocurrency that helps people convert crypto to fiat currency. Along with high fees, cross-border transactions had a lot of problems earlier. Thanks to Lumens, it seamlessly overcame the problem of lengthy transactions with low fees and a secured network.
XLM is a cheap crypto that is quickly surging in the ranks. Currently, it is trading at a price range of $0.425 with a market cap of around $9 billion. A significant reason for the increase in its value is its scarcity in the market. XLM has a limited supply of 50 billion coins, and 23 billion coins are already in circulation today.
XLM has a unique network with a consensus mechanism known as the Stellar Consensus Protocol. It provides decentralized control, low latency, asymptotic security, and flexible trust that make Stellar the most secure and trustable network for transactions.
With its lower cost, faster transaction, high security, and easy accessibility, XLM is expected to grow as one of the best affordable cryptocurrencies that offer good returns in the future.
Cheap Cryptocurrencies Under $5 With Huge Future Potential: The Bottom Line
With an array of advanced cryptocurrencies, the future of the cryptocurrency market is quite bullish.
Cheap or undervalued cryptocurrencies are the best option when it comes to exposure, diversifying your portfolio, and return on your invested capital.
With all of these factors in mind, investing in any of the above three cheap cryptocurrencies could have the potential to provide you a good return in the future.
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