13 Best Altcoins to Invest in 2026

The best altcoins to buy now depend on what you’re trying to capture in the next cycle: early-stage upside (higher risk) or established networks with real usage (lower risk). This guide ranks 13 altcoins across presales, large caps, DeFi, and infrastructure, allowing you to compare them by category, use case, and risk profile.

We also explain the exact checks that matter when evaluating an altcoin, including tokenomics, liquidity, holder distribution, and exchange access, so you can understand why a project made the list and what would disqualify it. So let’s break down 14 high-potential altcoin projects.

Top Altcoins With the Most Potential – Full Analysis

Our 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. 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 $0.01368270 per token.

Additionally, HYPER presale buyers can immediately stake the crypto and earn up to 41%% dynamic APY, with rewards occurring at a rate of 199.77 HYPER per ETH block. Already, over 170 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: $$32.94M
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, USDC, BNB, Visa & Mastercard

Visit Bitcoin Hyper

2. Maxi Doge –  Community-Backed Meme Coin Built to Take Over the Dog-Themed Crypto Market

The next promising altcoin to consider is Maxi Doge (MAXI), a Doge-inspired token pushing 1000x-leverage trading, extreme pump cycles, and ultimate gains. Dubbed the “gigaChad final form of Doge,” the project is showing investors a huge upside potential following a strong resurgence in dog-themed meme coins.

In the past year, Dogecoin (DOGE) rose by 71%, and Maxi Doge looks to follow in its footsteps. Less than 24 hours since the Maxi Doge presale began, the project had already raised over $115,000. Today, it’s at $4.82M, and is showing no signs of stopping.

Legendary tokens like SHIB and DOGE have shown that hype and a strong community alone can lead to multi-billion-dollar market caps. Maxi Doge goes one step further by fuelling its following with exciting community events, gamified tournaments, and potential partnerships with crypto futures trading platforms.

Additionally, MAXI holders can stake their cryptocurrencies during the ongoing presale, yielding 73% annual rewards. Maxi Doge has dedicated 5% of its 150.24 billion total token supply for staking rewards.

Get the latest updates on this altcoin by following the Maxi Doge X account, and read the project’s whitepaper for more details.

• Presale project: Maxi Doge (MAXI)
• Raised so far: $4.82M
• Blockchain: Ethereum
• Token type: ERC-20 token
• Accepted payment methods: ETH, BNB, USDT, USDC, and card

Visit Maxi Doge

3. Divine Ray – The First Social Media Platform Running Its Own Blockchain, Already Live in App Stores

Divine Ray (DRC) is a new ICO with something most crypto projects can’t claim at that stage: a working product. The platform is already live in the Apple App Store and Google Play – a full-service social media app, not a beta or a demo – built on its own independent Cosmos SDK blockchain and integrated into the Inter-Blockchain Communication (IBC) network.

The platform targets creators, retreat centers, spiritual organizations, and conscious communities, a defined community in the wellness and consciousness world rather than a generic Web3 audience. Token utility spans memberships, advertising, NFT minting, and creator rewards, all built into a platform that is already operational.

Most tokens in this space launch before their products exist, but Divine Ray is reversing the sequence: the validator network is secured through Proof-of-Stake consensus, and DRC is launching on the Osmosis decentralized exchange, giving participants immediate liquidity within the Cosmos ecosystem rather than the post-ICO listing wait common at this stage.

Divine Ray structured the Phase 1 ICO at $0.0000015 per DRC against a total supply of 5 trillion tokens, with 1.5 trillion allocated to the ICO across four pricing phases.

• ICO project: Divine Ray (DRC)
• ICO start date: March 23, 2026
• Blockchain: Cosmos SDK
• Token type: Native IBC token
• Accepted payment methods: USDC Noble, ATOM, MATIC, ETH, AVAX

Visit Divine Ray

4. LiquidChain – Innovative Layer3 Solution Combining Liquidity Across Top Blockchains

LiquidChain (LIQUID) is an upcoming layer3 infrastructure that taps into Bitcoin’s capital, Ethereum’s DeFi ecosystem, and Solana’s high-speed. It combines the strength of these leading blockchains to provide deep liquidity pools and more efficient cross-chain transactions.

It’s currently in the early phases of its presale, which offers investors the opportunity to participate before the LiquidChain crypto goes public. At the time of writing, the native cryptocurrency, LIQUID, is priced at just $0.01215. Additionally, early adopters can stake their LIQUID holdings to earn over 21,000% APY during the presale stage.

One of the core features of the LiquidChain layer3 network is its Proof-of-State Validation Layer, which eliminates risks associated with wrapped tokens. This protocol ensures atomicity and security of transactions by settling them across Bitcoin, Ethereum, and Solana.

With interconnectivity at its core, LiquidChain unlocks numerous development opportunities for builders. The layer3’s unified DeFi infrastructure features native interoperability, enabling developers to build blockchain apps that can easily be accessed across blockchains. Get the latest project updates by following the LiquidChain X account and joining the Telegram community.

• Presale project: LiquidChain (LIQUID)
• Raised so far: $33,108.84 – Newly launched!
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, BNB, SOL, USDT, USDC, Card

Visit LiquidChain

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 6.79 million 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: $1.56M
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, BNB, Visa & Mastercard

Visit SUBBD

6. SpaceXRP – Upcoming Meme Token That Announces Community Missions Around XRP’s Latest Updates

Another top altcoin to consider is SpaceXRP (SPACEXRP), a meme coin project that launches community interactions based on the latest XRP news. This space-themed cryptocurrency features a space pup mascot named Dripple, who reacts to XRP headlines by creating on-chain quests for token holders.

Its native crypto, SPACEXRP, is a meme utility token that grants holders access to Dripple’s community missions, mini-games, and drops. SpaceXRP’s total supply is 100 billion tokens, of which 15% are reserved for community missions, and another 15% is allocated for airdrops.

Investors can secure SPACEXRP through the Space XRP token presale before the meme coin launches on exchanges. Currently, $SPACEXRP is priced at $0.0002915, and the price increases after each presale stage. Early supporters receive priority access to upcoming NFTs, featuring Dripple in various outfits and missions.

Additionally, token holders can lock up or “Dock” their SPACEXRP holdings to earn variable staking rewards at over 90,000% per annum. Token rewards occur at a rate of 1,902.58 SPACEXRP per ETH block.

Follow the X account to receive official SpaceXRP announcements and updates.

• Presale project: SpaceXRP (SPACEXRP)
• Raised so far: $1.5k+ (newly launched)
• Blockchain: Ethereum blockchain
• Token type: ERC-20
• Accepted payment methods: ETH, USDT, USDC, BNB, Card

Visit SpaceXRP

7. Gassed Token – Fartcoin’s Spiritual Successor Offering Gamified Rewards and Variable Staking Yield

Gassed Token (GASSED) makes its way to our list of best altcoins as a unique P2E meme coin with a hilarious, community-building concept. Built to be the unofficial successor to the legendary Fartcoin, Gassed is establishing a loyal user base for the next crypto bull market cycle.

One of the project’s main features is its Click-to-Fart P2E game, which invites players to join and spam-click digital characters. The more clicks that a user registers, the more virtual farts they generate. From the start, Gassed tracks and monitors all player-based farts in a global leaderboard where the highest ranking individuals receive weekly token rewards.

To avoid the high gas fees that can occur on the Ethereum blockchain, Gassed Token will launch on Solana with high-speed transactions and cheaper network fees. But before then, the project is raising funds in the Gassed presale, where investors can purchase the GASSED native token. The presale supports crypto and card payments, as well as variable staking rewards for users who lock up their GASSED holdings.

Based on the Gassed crypto roadmap, the project plans on expanding its ecosystem after launching the Click-to-Fart P2E game. Particularly, Gassed Token aims to develop future NFT collectibles, cross-project collaborations, and real-world events called “Gassed Parties” to drive more engagement.

• Presale project: Gassed Token (GASSED)
• Raised so far: TBD
• Blockchain: Ethereum (launching on Solana)
• Token type: ERC-20
• Accepted payment methods: Crypto, Card

Visit Gassed Token

8. 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 , which is about a fifth of Ethereum’s valuation.

• Project: Solana (SOL)
• Price: 
• Market Cap:
• 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.

9. 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.

10. 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.

11. 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: 
• Market Cap:
• 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.

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

Arbitrum is one of our 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: 
• Market Cap:
• 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.

13. 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

The Best Altcoins Compared

We compare all altcoins referenced in this guide by category, primary use case, and risk profile to understand what each project does, why it exists, and how it differs from others, without requiring lengthy explanations.

How We Chose the Best Altcoins to Buy Now (Methodology)

We selected the best altcoins to buy now by evaluating each project’s risk level, real-world utility, and market structure, rather than focusing on short-term price movements or social media hype. The methodology matters because by combining early-stage opportunities with more established projects, users can build a diversified altcoin portfolio that balances upside potential with downside risk. Here is how:

• Market Capitalization and Liquidity
  These demonstrate how easily a position can be entered and exited without significant price impact, especially during sell-offs when low-liquidity altcoins often trap investors.
• Use Case and Real Demand
  We assessed whether the token is actually necessary to run a product, network, or service, as altcoins without demand often rely solely on new buyers to sustain their price.
• Tokenomics (Supply, Emissions, Vesting)
  Token design determines who gets paid and when, so we reviewed the total supply, inflation, staking rewards, and vesting schedules to identify projects that may face future dilution.
• Ecosystem Activity and Development
  Ongoing development and integrations signal whether a project is being actively built, which often separates long-term survivors from short-lived cycle plays.
• Narrative Relevance
  Altcoins tend to perform best when they align with dominant market narratives, such as Layer 2 scaling, DeFi infrastructure, AI, or meme-driven retail cycles.
• Overall Risk Profile
  Each project was classified based on its relative risk, considering maturity, liquidity, depth, execution history, and dependence on speculation versus real usage.

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.

Types of Altcoins Explained

Altcoins are categorized into different types, and each type exhibits distinct characteristics in terms of risk, volatility, and long-term potential. Knowing the type helps investors understand why a token exists and what usually drives its price.

• Utility Tokens
  Utility tokens are used to operate blockchains or applications, such as paying transaction fees or accessing network features. Examples include Ethereum (ETH), Solana (SOL), and Chainlink (LINK). These tokens often gain value as network usage increases, making them more fundamentals-driven than purely speculative assets.
• Meme Coins
  Meme coins are community-driven tokens where price action is largely shaped by attention and culture rather than utility. Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk (BONK) fall into this category. They tend to perform best during retail-heavy phases of altcoin season and carry higher volatility than most other crypto assets.
• Stablecoins
  Stablecoins are designed to maintain a stable price, typically pegged to a fiat currency, such as the US dollar. Common examples include USDT, USDC, and DAI. While they don’t offer price appreciation, they are essential for trading, liquidity, and moving funds without exposure to market swings.
• DeFi Tokens
  DeFi tokens power decentralized financial services, including exchanges, lending platforms, and yield protocols. Examples include Uniswap (UNI), Aave (AAVE), and SushiSwap (SUSHI). Their value often rises when on-chain trading and borrowing activity increase and falls when usage slows.
• Infrastructure and Scaling Tokens
  These tokens support blockchain scalability, data delivery, or interoperability between networks. Chainlink (LINK), Arbitrum (ARB), and Optimism (OP) are common examples. They may not always be visible to end users, but they benefit as entire ecosystems grow.
• Gaming, Metaverse, and NFT Tokens
  These tokens are used within games, virtual worlds, and digital asset platforms. Examples include Decentraland (MANA), The Sandbox (SAND), and Axie Infinity (AXS). Their performance depends heavily on user adoption, making them highly cyclical.
• Governance Tokens
  Governance tokens grant holders voting rights over protocol decisions, including upgrades and fee changes. Examples include Maker (MKR), Compound (COMP), and Uniswap (UNI). In theory, they decentralize control, though in practice, participation varies widely.

How Do Altcoins Compare to Bitcoin?

Altcoins generally offer higher growth potential than Bitcoin but come with greater volatility and risk. In contrast, Bitcoin is primarily viewed as a store of value and market anchor that tends to move first in each crypto cycle.

Bitcoin vs Altcoins: Key Differences

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 Bitcoin Hyper 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. We 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. Since most tokens were created as experiments, memes, or short-lived projects, they might have never gained real users or liquidity, and you wouldn’t have heard about them. Here is what we do know.

• Tens of millions of tokens have been created overall. Cheap token creation fuels the explosion.
• Research compiled by Tangem estimates that more than 30–37 million unique cryptocurrencies have been launched across blockchains over time, largely because anyone can create a token quickly and cheaply today.
• Only ~17,000–18,000 are actively tracked.
  Platforms like CoinGecko and CoinMarketCap currently list around 17,000–18,000 cryptocurrencies that exhibit some level of trading activity, price data, or community interest.
• Most tokens are effectively dead.
  A significant portion of newly created altcoins have zero trading volume, no development, and no holders, indicating they are either abandoned or non-functional. AltIndex notes that many tokens disappear quietly after launch or get delisted due to inactivity .

What Does This Mean for Investors?

For investors, this means that most altcoins are not investable, despite their large market appearance. While millions of tokens exist, only a few thousand have sufficient liquidity, users, and infrastructure to warrant serious consideration. This is why filtering by use case, volume, and survival odds matters far more than chasing the next new token.

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. Successful altcoin investing requires structured research and due diligence. As Steve Gregory, CEO of VTrader, told 99Bitcoins:

“The key areas to evaluate are tokenomics, developer activity, utility/practicality, and narrative… See which exchanges it’s listed on. Look at the concentration of large wallet holders and overall token distribution. Review the daily trading volume.”

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 our 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

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

Our overall top altcoin pick is Bitcoin Hyper, the world’s first Bitcoin Layer-2 platform built in an SVM environment. This altcoin unleashes BTC’s DeFi potential, increases scalability, and offers cross-chain interactions.

Visit Bitcoin Hyper

References

1. National Institute of Standards and Technology. “Private Key.” NIST Computer Security Resource Center, https://csrc.nist.gov/glossary/term/private_key.
2. U.S. Securities and Exchange Commission. “Pump and Dump Schemes.” Investor.gov, https://www.investor.gov/introduction-investing/investing-basics/glossary/pump-and-dump-schemes.
3. National Institute of Standards and Technology. “Blockchain.” NIST, https://www.nist.gov/blockchain.