The crypto market is currently in a relatively stagnant phase, led by Bitcoin, which has been hovering around US$40,000 since the beginning of 2022. There is a lot of uncertainty in the market in general. With oil prices going berserk and then normalizing again, a lot of capital and investor attention may be diverted away from cryptocurrencies.
This prolonged discounted state for most cryptocurrencies is not ideal for the people holding them, but if you are looking to buy, you can still get many crypto tokens at a great discount. And there are two that you should consider starting with.
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An early Bitcoin spin-off
As one of the earliest altcoins, Litecoin (CRYPTO: LTC) is quite well-known. It was one of the most significant competitors Bitcoin had in the early days and was marketed as a relatively “lighter” version of the Bitcoin, offering faster speeds, more efficiency, and a higher cap: 84 million instead of Bitcoin’s 21 million, almost 80% of which have been mined.
While Litecoin couldn’t even come close to the value of the forerunner of cryptocurrencies, it has offered decent value to investors since its inception. It has seen four growth phases since 2017 alone, growing about 7,300%, 500%, 900%, and 114%, respectively. Currently, it’s trading at a 71% discount from its last peak.
Bitcoin would have been a significantly better option if you had the choice between buying that or Litecoin a decade ago. But right now, its heavy valuation prevents major growth spikes or hard falls that can trigger three-digit growth. Litecoin, on the other hand, can more than triple your money if it just reaches its last peak in the next growth cycle.
The meme coin
Dogecoin (CRYPTO: DOGE), or the joke that went too far, is currently trading at a fraction of its peak valuation. You can buy over seven Dogecoins for just $1. And thanks to its 82% discount, the crypto token can easily offer you eight times growth if it just reaches its peak valuation again. And the return can even be higher if Elon Musk’s “Doge to the moon” pushes its value above US$1.
This particular crypto token may have started out as a joke. Still, thanks to backers like Elon Musk and several serious institutional investors taking a stake in this crypto, it has climbed up the ranks to join the 15 largest cryptocurrencies by market cap. It’s can be a powerful holding if bought at the current discounted price.
Foolish takeaway
Crypto assets and tech stocks associated with crypto can offer growth potential different than what most other growth stocks (with tangible businesses behind them) can offer. The volatility and risk are very well balanced with the rapid capital appreciation these investments can offer under the right circumstances.
