Cryptocurrencies associated with high risk, but could generate high returns, are discussed.
The crypto market has again been in an uptrend for the past 2-3 weeks. This means that many small investors are reconsidering whether and which cryptocurrencies they want to invest in. There are relatively “safe” currencies like Bitcoin or Litecoin, but also very high-risk cryptocurrencies.
In the past few weeks, most cryptocurrency prices have experienced a large increase. The Bitcoin price has risen from $16,500, at the beginning of the year, to over $21,000 in recent days. Ethereum also saw an equally strong percentage increase. Many other altcoins saw even stronger percentage increases.
Subprime cryptocurrencies are currencies that, in theory, could generate extremely strong gains. However, there is also a high risk that these coins will lose price massively, or even completely implode in value, in the coming weeks and months.
On the other hand, these high-risk cryptocurrencies also offer a certain chance that their value will increase considerably. Its price is particularly heavily based on speculation. This allows for high profits in the short term. However, many investors have already lost significant amounts of money on such investments.
Below are the four high-risk cryptocurrencies that will be buyable in 2023.
XRP Coin
The XRP coin is part of the Ripple payment network and had a lot of publicity, especially at the end of the year 2017/2018. Meanwhile, however, Ripple’s legal dispute with the American stock exchange supervisory authority SEC is over the currency.
If Ripple loses this lawsuit, the XRP course could implode. However, a lawsuit victory could result in a price explosion. Therefore, the XRP coin is currently seen as number 1 when it comes to “high-risk cryptocurrencies”.
Shiba Inu Coin
The Shiba Inu coin is the second biggest meme coin and started out as a parody of Dogecoin. In 2021, it saw extreme price increases in a very short time. Nevertheless, investors who bought late suffered losses. This happened because meme coins are extremely volatile, thus their price can quickly drop.
Dogecoin
Dogecoin is the first ever meme coin and started as a parody of Bitcoin. Since then, it has had multiple bull markets and even a bear market. This means that Dogecoin has proven itself longer than Shiba Inu Coin. Still, the currency is highly volatile and can experience both extreme rises and extreme falls in value.
Solana (SOL token)
As the last coin in the category “high-risk cryptocurrencies” is the SOL token from the Solana network. Solana is very popular due to its high scalability, but it is also heavily criticized. The connections to Sam Bankman-Fried and FTX, as well as the previous network blocks, are cause for concern. A scenario like Terra (LUNA) cannot be ruled out. However, profits are likely to be very high.
By Audy Castaneda
