Crypto analyst Elliot Wainman is spotlighting four little-known altcoins that he believes have massive growth potential.
The popular crypto trader, who is a self-prescribed altcoin gem enthusiast, is updating his 209,000 YouTube subscribers on the low cap projects he is looking at as the market takes a slight breather.
The first project Wainman highlights is Bridge Mutual whose BMI token is yet to launch. Bridge Mutual is a transparent and decentralized insurance application that aims to replace the traditional insurance industry.
Wainman says that the project will launch with a relatively low market cap, though he warns those interested in purchasing BMI that the launch may be rather chaotic, with transactions at risk of being front run by bots.
“Bridge is going to start at a really low market cap. It might get attacked and botted and pumped right off the bat, I don’t really know what’s going to happen. It’ll probably be absolute madness at the beginning here but it’s one that I can see growing at least for the first month or so as it’s growing and achieving some market structure… if it comes down a lot after its initial launch phase this could be an interesting entry.”
Wainman moves on to highlight Hopr, another project that is yet to launch. Wainmain notes that Hopr strikes a balance between providing users desired anonymity on the blockchain and satisfying regulators who are interested in targeting privacy coins.
“They allow for more anonymizing of data on the blockchain even though their particular coin is not an anonymous privacy coin. And I think that set up makes a lot of sense because it’s a service that people want but a privacy coins is going to probably rub the regulators pretty wrong and they have some pretty epic early statistics as to how it’s being adopted.“
Next up on Wainman’s list is developer-friendly blockchain Flow – Dapper Labs (FLOW) which aims to be the base layer for the next generation of games, apps and the digital assets that power them.
Wainman notes that one may want to wait a beat before jumping into the project as it’s just had a significant run up.
Last on Wainman’s list is decentralized finance (DeFi) project Klondike Finance. Users can farm the platform’s KLON token without risk of impermanent loss. Wainman notes that though he does not necessarily recommend directly purchasing the asset, he does think it has the potential to be the next trendy yield farming asset.
“The big brains with DeFi, they get things like Bitcoin or Wrapped Bitcoin (WBTC) and they just farm with it. So you can actually just farm and earn KLON tokens and there’s not really a big risk to you. I’m not telling you guys to buy KLON or that it’s going to go up… DeFi is about farming at its core.”
The trader closes the video by sharing his investment strategy and how he consistently grows his own portfolio.
Wainman remarks that if Bitcoin takes a break or a significant dip in the next few weeks, it is still possible to shift one’s focus and turn profits on low cap projects, but one has to know when to sell.
“Understanding that if Bitcoin really does take a dive, then you’re going to want to be getting into some coins that don’t have as much gravity on them…
You need to understand that when things pump viciously they can dump viciously as well. If you’re lucky enough to have 3, 4, 5, 10x multiples you should be protecting your capital.
In my method, I take 10%, put it in Ethereum, 20% in Bitcoin, 30% stays in the coin and 40% goes into either USD or ETH which I will then reinvest in new opportunities. It’s the way I keep my portofolio moving and keep growing it and constantly look for new upside while still preserving the opportunity in case that coin goes on an absolutely massive tear.”
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Abhijeet Khedgikar