16 Best Altcoins to Invest in 2025

It’s time to start looking for the best altcoins to buy as the next altcoin cycle is just around the corner. Now is the time to load up on some undervalued cryptocurrencies, but it can be difficult to find the right ones or to know which are the best altcoins to buy right now.

In this guide, I’ll explore 16 altcoin projects with the highest upside potential, covering a blend of small and large-cap projects. I’ll also reveal my research methodology when ranking altcoins, allowing you to build a highly effective portfolio.

Top Altcoins With the Most Potential – Full Analysis

My list of top altcoins to buy will now be discussed in more detail. Read on to select the best altcoin projects for your crypto portfolio.

1. Solaxy –  Best Layer 2 Altcoin With 113% Annual Staking Rewards

Solaxy ($SOLX) is a groundbreaking new Layer 2 (L2) solution for the Solana network, addressing the blockchain’s congestion problems during peak activity levels. The new L2 will execute transactions off-chain, eliminating possible downtimes that Solana is susceptible to during network surges.

Additionally, Solaxy will be able to process transactions in bundles before finally sending them back on the Solana mainnet. This helps retain Solana’s security and allows Solaxy to offer low network fees and higher throughput.

$SOLX, the native cryptocurrency, powers the Layer 2 platform and can be purchased in the ongoing Solaxy presale. Token holders can stake $SOLX during the presale, yielding them a generous 113% APY dynamic. 25% of the total Solaxy token supply is reserved for rewarding its early supporters.

So far, Solaxy has raised over $35.55 million from its presale. Interested buyers can purchase $SOLX, priced at $0.001724, with ETH, USDT, BNB, or a credit card. Buy and stake $SOLX early as presale prices increase incrementally and staking rewards decrease over time.

To learn more about this altcoin, read the Solaxy whitepaper and join the Telegram channel for the latest updates.

• Presale project: Solaxy ($SOLX)
• Raised so far: $35.55 million
• Blockchain: Ethereum and then Solana blockchain
• Token type: ERC-20 token
• Accepted payment methods: ETH, BNB, and card

Visit Solaxy

2. BTC Bull Token – Best Altcoin to Benefit From Bitcoin’s Rise With Free BTC Airdrops

BTC Bull Token ($BTCBULL) is another top altcoin to watch in 2025. It’s a meme-based and community-inspired project that allows presale participants and token holders to capitalize on Bitcoin’s surging price.

One of BTC Bull Token’s main user-incentivizing features is Bitcoin milestone airdrops. The meme token has reserved 10% of the total $BTCBULL token supply for airdrop campaigns, which it will roll out when Bitcoin hits the $150K and $200K price milestones.

The platform’s Bitcoin-linked token burns is another initiative that rewards $BTCBULL holders. When Bitcoin crosses major price points ($125K, $175K, and $225K), the meme coin project will permanently reduce the supply of $BTCBULL tokens. This helps support the $BTCBULL’s price as the increased scarcity will drive demand and value.

So far, BTC Bull Token has raised $5.71 million through its presale, offering its native coin at $$0.00251 per token. Early buyers get to snag the meme coin at a fraction of its future price and benefit from a generous 72% APY should they choose to to stake $BTCBULL during the presale.

Investors interested in BRC Bull can explore more via the official website and join the BTC Bull Token Telegram channel for the latest updates.

• Presale project: BTC Bull Token ($BTCBULL)
• Raised so far: $5.71 million
• Blockchain: Ethereum blockchain
• Token type: ERC-20 token
• Accepted payment methods: ETH, USDT, BNB, and card

Visit BTC Bull Token

3. MIND of Pepe – Self-Evolving AI Meme Coin Offering Privileged Insights and Trading Advantages

Another top altcoin is MIND of Pepe ($MIND), the first major meme coin AI agent. Inspired by the iconic Pepe meme figure, MIND of Pepe is set to disrupt the traditional meme coin market through its self-sovereign AI.

The MIND of PEPE AI agent runs its own Twitter account, enabling it to autonomously engage with its community by publishing social media content. Without human intervention, the meme coin AI can even identify trends and market dialogue, which it can relay to community members.

$MIND token, the native crypto, offers exclusive token-gated benefits for its holders. Through MIND of Pepe’s hive-mind analysis, it will provide $MIND holders first-in trading advantages and privileged insights that aren’t publicly available.

As it stands, the MIND of PEPE token presale allows early investors to buy $MIND tokens at discounted rates. Users can also stake $MIND and earn 265% APY dynamic during the presale phase.

Get on board with the $MIND presale before it’s over end of May!

To learn more about the AI-driven token, read the MIND of Pepe whitepaper. Also, join the Telegram community and follow the X profile for the latest news.

• Project: MIND of Pepe ($MIND)
• Market Cap: $8.64 million
• Blockchain: Ethereum
• Token type: ERC-20
• Accepted payment methods: ETH, BNB, USDT, and card

Visit MIND of Pepe

4. Best Wallet Token – Native Coin of a Top Crypto Wallet Offers Discounted Trading Fees

The next top altcoin on our list is the $BEST token, the native coin of Best Wallet. This is a popular non-custodial crypto wallet that lets users manage all their digital assets safely.

The Best Wallet Token ($BEST) offers several benefits in the ecosystem, starting with reduced transaction fees. Through the ‘Upcoming Tokens’ page section on Best Wallet, $BEST token holders will be able to get early access to new crypto presales and projects.

$BEST token holders can also benefit from earning higher staking rewards, and get voting rights on the governance mechanism. Currently, the $BEST token is available exclusively to existing Best Wallet users.

By the end of the presale, Best Wallet aims to raise a hard cap of more than $10 million. To learn more about the project, join the Best Wallet Telegram channel and follow them on X (Formerly Twitter).

• Presale project: Best Wallet Token ($BEST)
• Raised so far: $10.7 million
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, and BNB

Visit Best Wallet Token

5. SUBBD – AI-Driven Crypto Project Set to Disrupt the Creator Subscription Ecosystem

SUBBD ($SUBBD) is the world’s first decentralized creator subscription platform with AI-assisted capabilities. Instead of using the traditional subscription model, the project designed a token-powered access system that rewards active user engagement and participation.

$SUBBD, the native crypto, unlocks various exclusive token holder benefits for both fans and creators. $SUBBD holders will enjoy access to premium content, engagement rewards, boosted platform rewards, and discounts within the SUBBD ecosystem. Meanwhile, creators get AI assistants with live scheduling and upselling capabilities. SUBBD influencers can also use the assistants to engage with their fans through AI-powered real-time chat rooms.

Additionally, $SUBBD token owners get VIP staking benefits, which include access to livestreams, extra content, and other exclusives. While SUBBD is currently in its presale phase, early participants can stake the native crypto and earn a fixed 20% APY on their locked tokens. So far, the platform has staked over 414K $SUBBD tokens.

The Ethereum-based project has over 250 million followers across its expansive social network and is gaining presale traction that will set SUBBD up for mass market adoption. Early buyers can take advantage of the discounted presale rates and buy $SUBBD tokens before the platform goes public.

Read the SUBBD whitepaper to learn more about the project, and join the Telegram channel for the latest updates.

• Presale project: SUBBD ($SUBBD)
• Raised so far: $389,995.88
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, BNB, Visa & Mastercard

Visit SUBBD

6. Bitcoin Hyper – Pivotal Bitcoin Layer 2 Crypto With Massive Presale Staking Benefits

Bitcoin Hyper ($HYPER) is the first-ever Bitcoin Layer 2 rollup, transforming how we use the world’s number one cryptocurrency. Backed by established L2 frameworks like Lightning Network and Optimism (among many others), the new crypto project boosts Bitcoin transaction speeds and scalability.

By leveraging SVM (Solana Virtual Machine) smart contracts, the Bitcoin Hyper L2 brings Solana’s high throughput and cost-effective transactions for Bitcoin holders. With $BTC transactions handled on the network, Bitcoin’s liquidity increases, and users can integrate their $BTC into various DeFi processes.

Importantly, Bitcoin Hyper is in its development stage, raising funds through its crypto presale. This allows investors to snag the $HYPER native token at a massive presale discount of $0.0115 per token.

Additionally, $HYPER presale buyers can immediately stake the crypto and earn up to 5,520% dynamic APY, with rewards occurring at a rate of 199.77 $HYPER per $ETH block. Already, nearly 1 million native tokens have been staked on the Bitcoin Hyper platform.

Stay in the loop by joining the Bitcoin Hyper Telegram group and get the latest announcements.

• Presale project: Bitcoin Hyper ($HYPER)
• Raised so far: $113,637.64
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, USDC, BNB, Visa & Mastercard

Visit Bitcoin Hyper

7. Fantasy Pepe – Blending AI, Football, and Memes Into a Decentralized Prediction Game

Fantasy Pepe is a next-gen Web3 gaming platform that runs an AI-powered fantasy football league on the blockchain. It employs ChatGPT and DeepSeek to manage meme-inspired virtual football clubs and uses Grok to referee matches.

Participants use the native $FEPE token to predict match results, earning them tokenized rewards if they make the right choice. Additionally, users can stake $FEPE tokens and earn up to 150% APY, incentivizing players to hold on to their crypto.

In the future, Fantasy Pepe plans to collaborate with real-world football teams and professional players, deepening their exposure to the 3.5 billion global football fans. Further down the line, the AI crypto platforms will integrate NFT collectibles, which would help increase community engagement and activity in the gaming ecosystem.

Interested investors can buy $FEPE in the Fantasy Pepe token presale, which is open for anyone with a decentralized wallet to connect to. The project has reserved 20% of its 125 billion $FEPE token supply for the presale stage, allowing early buyers to purchase the crypto at a significant discount.

Read the Fantasy Pepe whitepaper to learn more, and join the Telegram group for the latest announcements.

• Presale project: Fantasy Pepe ($FEPE)
• Raised so far: $284,518.03
• Blockchain: Ethereum, later to be deployed on Polygon
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, USDC, BNB, Card

Visit Fantasy Pepe

8. SpacePay – Delivering Innovation to Point of Sale Crypto Payments

Spacepay ($SPY) is a UK-based FinTech company on a pioneering mission to deliver the future of innovative point-of-sale crypto payments.

From developing the world’s leading near-field communication (NFC) product for crypto payments, Spacepay is heralding a revolution in how users interact with cryptocurrency in their day-to-day lives. And that’s without digging into SpacePay’s suite of planned commercial SPY APIs.

Just imagine a simple, sleek, touchless way to use cryptocurrency in-store instead of fiat currencies. This is the future SpacePay is delivering.

At the time of writing, the project is on the cusp of launching the highly anticipated SpacePay SPY presale, which will offer the earliest investors a significant opportunity to be amongst the first to invest in this new payments ecosystem.

Amid the hype of the presale funding round, there will be a full in-depth contract audit conducted to ensure the security of the platform, ahead of the monumental launch of the SpacePay Payment APK (the flagship product).

More details can be found in the whitepaper tells us that the project is putting 20% of the total token supply up for grabs in presale.

• Presale project: SpacePay ($SPY)
• Raised so far: $936K
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, Visa & Mastercard

Visit SpacePay

9. Harry Hippo – AI-Driven Meme Coin Featuring a P2E Game and a High APY Staking Model

Next on our list of top altcoins is Harry Hippo ($HIPO). At the heart of the project is the “Harry Hungry Hipo” play-to-earn game, challenging players to compete for rewards in the form of $HIPO tokens. It has a unique and catchy theme that’s inspired by Colombian hippos but with an advanced AI element.

Users can stake their tokens for a 600% APY during the ongoing presale. This high staking APY is rare and highlights Harry Hippo’s intention to reward early buyers and create a loyal user base.

The platform has set a supply cap of three billion tokens, with 10% reserved for staking.

Harry Hippo’s long-term roadmap involves developing an entire GameFi ecosystem with AI-driven insights and planned NFT integrations.

You can currently buy $HIPO for just $0.00555 in its ongoing presale. Visit the Harry Hippo website to learn more about the project. Follow Harry Hippo on X and join its Telegram channel for the latest presale updates.

• Presale project: Harry Hippo ($HIPO)
• Raised so far: $1 million
• Blockchain: Ethereum
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, BNB, Card

Visit Harry Hippo

10. Guardians of the Car – Self-Evolving AI Meme Coin Offering Real-Time Road Safety and Passive Income

Another top altcoin is Guardians of the Car ($GOCAR). As the first AI-powered car-themed meme coin, GOCAR wants to revolutionize road safety. With its state-of-the-art AI capabilities, it aims to eliminate road traffic accidents.

The GOCAR AI agent acts as a personal JARVIS for drivers, automatically analyzing traffic data and providing real-time critical alerts such as forward collision warning, traffic violation notifications, wrong-way driver alerts, and road hazard analysis based on weather conditions.

$GOCAR token, the project’s native crypto, provides token holders exclusive benefits through its Guardians-To-Earn (G2E) model. By sharing real-time traffic data, users actively build a safer mobility ecosystem and also enjoy incentives.

The current $GOCAR token presale allows early investors to buy tokens for just $0.0017. During the presale period, users can also stake $GOCAR to earn a 56% dynamic APY.

Buyers can visit the Guardians of the Car website to learn more about this project. For the latest project updates, you can also join the GOCAR token’s Telegram community.

• Presale project: Guardians of the Car ($GOCAR)
• Raised so far: $728,000+
• Blockchain: Solana blockchain
• Token type: SPL
• Accepted payment methods: SOL, ETH, USDT, BNB, Card

Visit GOCAR Presale

11. Solana – A Legitimate ‘Ethereum Killer’ With a Growing dApp and Smart Contract Ecosystem

Solana is one of the best cryptocurrencies to buy right now. While we’ve heard the term ‘Ethereum Killer’ since the 2017 bull cycle, Solana is the most legitimate competitor. The developer community has realized that Solana offers a much better alternative to Ethereum. This is especially the case when considering fees.

Fees skyrocket when the Ethereum network is in high demand. In contrast, Solana averages just $0.00064, even when the network is busy. Solana also handles significantly more transactions per second. Transactions are also much faster. This is why an increasing number of decentralized applications (dApps) are opting for the Solana ecosystem.

This bodes very well for its native token, SOL. In the prior year of trading, SOL has increased by almost 800%. According to CoinMarketCap, SOL is trading 30% below its all-time high. Solana has a market capitalization of over $89.72B, which is about a fifth of Ethereum’s valuation.

• Project: Solana ($SOL)
• Price: $172.64
• Market Cap: $89.72B
• Blockchain: Solana blockchain

Note: You can buy SOL on eToro from just $10. eToro is a regulated crypto broker offering fee-free USD payments.

Visit eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. 

US customers can only invest in Bitcoin, Bitcoin Cash, and Ethereum.

12. Decentraland – Invest in the Leading Metaverse Project, Trading at a 90% Discount

Decentraland is one of the best altcoins to invest in the metaverse niche – especially at current prices. Its native metaverse token, MANA, trades at a 90% discount from all-time highs. What’s more, Decentraland has a market capitalization of just over $1 billion. This offers an attractive valuation as we approach the altcoin season.

MANA has many use cases within the Decentraland ecosystem. For instance, Decentraland users can buy plots of metaverse land with MANA. They can also upgrade their land by building real estate. Decentraland supports unlimited customization, meaning users can build their dream home.

MANA is also required to purchase in-game assets, such as apparel. Decentraland is also a play-to-earn gaming platform. Developers can build games and sell virtual experiences. Again, all payments are made in MANA. The main drawback is MANA’s recent price performance. While Bitcoin has increased by 135% in the prior year, MANA has risen by just 1%.

• Project: Decentraland ($MANA)
• Price: $0.5007
• Market Cap: $972.50 million
• Blockchain: Ethereum blockchain

Visit eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance.

US customers can only invest in Bitcoin, Bitcoin Cash, and Ethereum.

13. SushiSwap – Underpriced DEX Token, Currently Valued at Just Over $145 Million 

SushiSwap could be a great option if you want exposure to decentralized exchanges (DEXs). This marketplace is expected to grow rapidly during the next bull run. After all, an increasing number of new cryptocurrencies are being launched – most opt for DEXs. Although Uniswap is the largest DEX by trading volume, SushiSwap’s valuation is a lot more attractive.

For instance, SushiSwap is currently valued at just over $145 million. In contrast, Uniswap trades at a 17x premium with a market capitalization of $6.5 billion. There’s little to separate the two DEXs in terms of functionality. For instance, both are built on the Ethereum network and support cross-chain capabilities.

Moreover, SushiSwap and Uniswap both charge trading fees of 0.3%. In terms of price performance, SushiSwap’s native token, SUSHI, is up 42% in the prior year. This is below par when compared to the broader market. Nonetheless, those buying SUSHI tokens today will secure a 92% discount from all-time highs.

• Project: SushiSwap ($SUSHI)
• Price: $1.49
• Market Cap: $394.50 million
• Blockchain: Ethereum blockchain

Visit eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. 

US customers can only invest in Bitcoin, Bitcoin Cash, and Ethereum.

14. Chainlink – De-Facto Oracle Ecosystem Providing Real-World Data to Smart Contracts

Chainlink is an altcoin that all crypto investors should have some exposure to. It’s the de-facto leader in the Oracle industry, meaning it provides real-world data to smart contracts. This enables dApps to obtain information outside of its native network, a crucial aspect of the Web 3 sector.

Moreover, Chainlink supports blockchain interoperability. This means different blockchain networks can share data without needing a centralized third party. Chainlink’s native token, LINK, is needed to request data feeds. It’s also used to incentivize Oracle networks, ensuring that data is accurate and unbiased.

Chainlink will likely serve all sectors, including insurance, education, finance, healthcare, and aviation. Chainlink is currently valued at over $10.7 billion. While this large-cap valuation might put some investors off, the upside potential is still huge. Over the prior 12 months, LINK has increased by 145%. However, it’s still 66% down from all-time highs.

• Project: Chainlink ($LINK)
• Price: $16.32
• Market Cap: $10.73B
• Blockchain: Ethereum blockchain

Visit eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. 

US customers can only invest in Bitcoin, Bitcoin Cash, and Ethereum.

15. Arbitrum – Great Option for Investing in Layer 2 Solutions for the Ethereum Blockchain 

Arbitrum is one of my top altcoin picks for layer 2 solutions. There appears to be no on-chain fix for Ethereum’s fee crisis, so layer 2s are expected to do very well during the altcoin season. Arbitrum not only reduces ERC-20 fees but it increases scalability and speed.

Arbitrum continues to attract dApps, with 281 projects currently bridged to its ecosystem. This includes Curve DAO Token, Gnosis, Dai, Uniswap, the Graph, and Wrapped Bitcoin. Overall, the Arbitrum ecosystem is valued at nearly $200 billion. What’s more, Arbitrum is renowned for its robust security and progressive development team.

Projects using Arbitrum’s layer 2 solutions pay fees in ARB. This is the token you need to gain exposure to Arbitrum’s growth. It has a market capitalization of almost $4 billion, so there’s lots of room for growth. In the prior month, Arbitrum has declined by 30%. This offers another chance to buy ARB at a huge discount.

• Project: Arbitrum ($ARB)
• Price: $0.40
• Market Cap: $1.95B
• Blockchain: Arbitrum blockchain

Visit eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. 

US customers can only invest in Bitcoin, Bitcoin Cash, and Ethereum.

16. Jupiter – SOL-Based Exchange Token With One-Month Growth of Over 150% 

Investors might also consider Jupiter when exploring what altcoin to buy. This is a new yet hugely popular DEX for the Solana ecosystem. It enables traders to buy SOL-based tokens without relying on third parties. Jupiter also offers a dollar-cost averaging (DCA) feature, which is unique in the DEX space.

This enables investors to DCA their positions at their preferred intervals. This starts from just one minute up to a month. The smart contract will make the respective swaps automatically, so it’s completely passive. Jupiter also supports limit orders, bridging tools, and perpetual swaps.

These innovative features are reflected in the Jupiter price. Its native exchange token, JUP, has increased by over 150% in the prior month. Moreover, Jupiter has a market capitalization of $1 billion. This is much lower than other exchange tokens like BNB. However, the main drawback is that less than 14% of the JUP supply is currently in circulation.

• Project: Jupiter ($JUP)
• Price: $0.8125
• Market Cap: $1.1 billion
• Blockchain: Solana blockchain

Buy JUP on MEXC

What Is an Altcoin?

There are thousands of cryptocurrencies in the market. Every single one – apart from Bitcoin, is an altcoin. Over time – especially during bull cycles, altcoins often outperform Bitcoin by many multiples. This is because Bitcoin has already secured a mammoth market capitalization.

For example, consider that Bitcoin is valued at over $1 trillion. In contrast, some altcoins have a market capitalization of several million dollars. This enables altcoin investors to target much higher growth. It’s important to know that most altcoins are built on other networks. For example, altcoins on the Ethereum network are ERC-20 tokens.

A much smaller percentage of altcoins have their own priority blockchain. These are typically the most valuable. Examples include BNB, Solana, Cardano, Dogecoin, and Avalanche. Ultimately, the best approach to altcoin investing is to diversify, as knowing which tokens will blow up can be challenging.

Why Invest in Altcoins?

I’ll now take a much closer look at why altcoins remain popular with investors. This will help you assess whether altcoins are right for your portfolio.

Potential for Explosive Growth

The main attraction of altcoins is their potential for explosive growth. This is due to the market capitalization. As mentioned, Bitcoin is already valued at over a trillion dollars. While Bitcoin’s long-term future is bright, it’s unlikely to achieve 100x gains in any single bull cycle.

This isn’t the case with altcoins. Depending on the valuation, altcoins can blow up by over 100x in a matter of weeks. This often happens when an altcoin begins trending on social media and/or major media publications. Dogwifhat is a great example of what a successful altcoin investment looks like.

While dogwifhat is simply a meme coin with no utility, it has witnessed unprecedented gains since launching in November 2023. The first recorded price of dogwifhat was $$0.000001366. Dogwifhat hit an all-time high of $4.85 in March 2024. So, had you invested from the get-go, you’d be looking at gains of over 355 million percent.

And it’s not just small-cap meme coins that can yield substantial returns. Take Solana, which has increased by over 100% in the past year – even though it’s already a billion-dollar project. On a longer time frame, Solana is up over 22,000% since its 2020 inception.

Invest in Projects Before They Become Mainstream

The altcoin space is similar to investing in a start-up. You can buy brand-new tokens while the project is still young. As an early investor, you’ll usually secure a very attractive entry price. This translates to a low token price and a micro-cap valuation. As the project achieves its roadmap goals, its valuation should increase.

This is because new buyers are encouraged to invest, once they see the project is making waves. For example, 5th Scape is a brand-new crypto start-up from the VR and AR niche. It has developed a proprietary VR headset. This can be used when playing 5th Scape games, which are unique to the ecosystem.

5th Scape hasn’t launched on crypto exchanges yet as it’s currently in presale. This means investors can buy its native token at the best price possible.

Just remember that most altcoins will fail – no matter how innovative their products or services are. This is why the most successful altcoin investors will diversify. Put otherwise, if you’ve only got $1,000 to invest – avoid putting it all into one altcoin. Instead, consider spreading the investment across multiple projects. Early movers gain the advantage of higher potential returns, but it’s essential to research the team, use case, and tokenomics before making any investment decisions. A well-balanced portfolio is key to minimizing risk.

Altcoin Season is Approaching 

Altcoin season is one of the most exciting periods in the crypto space. It occurs during the Bitcoin bull market. Capital flows gradually leave Bitcoin and begin entering altcoins. This results in many altcoins experiencing parabolic growth. As each cycle passes, the altcoin season becomes bigger. There is no exact science on when the altcoin season should start.

Instead of trying to time the markets, investors should fuel their portfolios with cheap altcoins. This will position investors nicely for when the altcoin cycle eventually begins. According to TradingView data, the altcoin market peaked at $303 billion in the 2017 bull market.

In the 2021 bull market, it peaked at over $1.5 trillion. Today, the total value of all altcoins is just over $1.3 trillion. This means the market needs to increase by about 15% just to get back to 2021 levels. After that, some altcoin price predictions believe unparalleled heights will be reached.

Easy to Create a Diversified Altcoin Portfolio

There are thousands of altcoins to choose from, making it difficult from an analysis perspective. However, this also makes it simple to create a highly diversified portfolio. You’d only need one of your altcoin picks to explode to see a sizable return on investment.

For example, suppose you want exposure to layer 1 altcoins; these typically do well during bull markets. Instead of just investing in Solana, you might also consider BNB, Cardano, Avalanche, Cosmos, Aptos, Sui, and Sei. In the metaverse space, you might consider Decentraland, the Sandbox, and Axie Infinity.

Building a meme coin portfolio also requires diversification. You might consider brand-new meme coins like Solaxy and Mochi. In addition to established meme coins like Dogecoin and Shiba Inu. Ultimately, failing to diversify can be risky, as you’re putting all of your eggs into one altcoin basket.

How Many Altcoins Are There?

There are a significant number of altcoins in the market. I mentioned earlier that there are ‘thousands’ to choose from, as this mirrors what CoinMarketCap tracks.

However, the reality is that millions of altcoin tokens have been created. For instance, there are over 450,000 tokens on the Ethereum network alone, as per BitPay data. The vast majority are worthless; they have no trading volume or active holders.

Crucially, anyone can create an altcoin. There are now online platforms that allow beginners to launch an altcoin in under 10 minutes. This includes a fully-fledged smart contract.

How to Find the Best Altcoins to Buy

Finding the best altcoins with the most potential is challenging. Most altcoin investors – especially complete beginners, will lose money. This is often because they don’t know where to look. Or what signs to look out for.

Fortunately, there are some best practices that you can follow. Let’s take a closer look at how to build a successful altcoin trading portfolio.

Look for Trending Presales

If you’re looking to buy the best new altcoins before they become mainstream, presales might be the best option. You can invest in a project before it begins trading on exchanges.

This is like investing in a stock IPO before its NASDAQ or NYSE listing. I should, however, note that presales carry the most risk.

Explore Birdeye to Find Micro-Cap Gems

Using Birdeye is another strategy to find the best altcoins to buy. This data aggregation platform tracks altcoins that trade on decentralized exchanges. It covers the leading network standards, including Ethereum, Base, Solana, BNB, and Arbitrum. You can see which altcoins are trending, and which projects have seen the biggest gains and losses.

I would suggest clicking on the ‘Find Gems’ button. You’ll then have access to some useful filters. For example, you can filter altcoins by the number of token holders. You can then change the market capitalization. For instance, you might only want to see altcoins valued between $1 million and $10 million. Other useful filters include 24-hour views, watchers, and volume.

Importantly, only invest in a micro-cap altcoin if its liquidity is locked. This means the liquidity pool cannot be drained by the developer. This is a common scam in the altcoin space – so tread with caution.

Assess Which Crypto Narratives Are Hot 

There is often a particular narrative during the altcoin season. Each narrative can last for days, weeks, or months. It depends on how much buying pressure there is. Once a narrative has reached its peak, a new one begins. For example, during the prior bull market, some of the most popular altcoins were decentralized finance (DeFi), play-to-earn (P2E) games, and metaverses.

The narrative in recent months has been AI and Solana meme coins. In my view, the next big narratives will be Base network and real-world asset (RWA) tokens. Both of these niches are showing strong signs, so they’re well-primed for altcoin season. P2E and AI will likely stick around too.

Once you’ve determined which narratives to invest in, make sure you’re diversified. Nobody can predict which specific altcoins will blow up – so it’s best to have exposure to multiple projects within each narrative. Just don’t buy too many altcoins, as this can be difficult to manage.

Always Have Exposure to Layer 1 Protocols

I mentioned earlier that layer 1 protocols always perform well during bull cycles. Especially those that have entire ecosystems. For example, Ethereum and Solana enable developers to build dApps. Transactions within each dApp must be settled in ETH and SOL, respectively. This enables Ethereum and Solana to grow organically as more dApps are built.

That said, Ethereum and Solana are already large-caps, so some of you might want exposure to layer 1 protocols with smaller valuations.  For instance, Sei, Sui, and Fantom are valued at around $2 billion. These projects could be worth significantly more once altcoin season begins.

There are also layer 1 protocols valued at under a billion dollars. This includes Chia, Chromia, WAX, Aleph Zero, and Casper. Once again, this is where diversification can help. Spread your capital over multiple layer 1 protocols with varying valuations. You can always move money around if you lose interest in a particular protocol.

Potential Risks of Investing in Altcoins

I’ve explained that altcoin season can generate significant wealth. Unfortunately, the opposite can also happen. Some crypto investors will lose vast sums in the coming months, so the risks should not be understated.

First, remember that altcoin prices rise and fall. Even during altcoin season, some projects will fail. This means you could lose some or even all of your original investment. The latter is more likely if you end up investing in a crypto scam. For example, many newly launched tokens aren’t legitimate.

The ‘developer’ will aim to scam as many people as possible. They can do this in various ways, but the most common is to drain the liquidity pool. This means there is no liquidity for holders to sell their tokens, meaning they’re now worthless. Another scam is to adjust the altcoin’s smart contract.

For example, the developer might restrict token sales, meaning investors can no longer cash out. They could also issue new tokens, and then dump them on the open market. I’ve also seen altcoin scams that suddenly add a huge tax. For instance, 99% of the token sale will be taxed and transferred to the scammer’s wallet.

Another mistake that beginners make is assuming an altcoin will always recover. However, many well-known altcoins trade at small fractions of their prior highs. For example, XRP’s all-time high was achieved in 2018. Ultimately, risks can be reduced through diversification, dollar-cost averaging, and in-depth research.

Conclusion

In summary, I’ve revealed the top altcoins to invest in for the next bull cycle. I’ve covered a broad range of niches, including meme coins, decentralized finance, metaverses, Oracles, and Base network tokens.

My overall top altcoin pick is Solaxy, a new meme token that introduces Solana’s first Layer-2 infrastructure. This altcoin offers huge passive income-earning opportunities through its staking mechanism and multi-chain compatibility.

Visit Solaxy

References

1. Memecoin Billionaires Are Back With Bets on Being the ‘First Idiot In’ (Bloomberg)
2. Crypto Total Market Cap Excluding BTC (TradingView)
3. ERC-20 Tokens: What They Are and How They Are Used (BitPay)
4. Why Decentralised Finance (DeFi) Matters and the Policy Implications (OECD)
5. What Are the Most Popular Crypto Scams to Watch For in 2024 (Time)