While Bitcoin (BTC-USD) may be risky enough for most of us, there are some cryptos for risk tolerant investors that have even more volatility on the horizon. These digital assets are often relatively new entrants into the crypto market, with unproven use cases and small market capitalizations. Their prices can fluctuate wildly due to factors such as speculation, regulatory uncertainty, and the overall sentiment.
These highly volatile cryptocurrencies can be tempting for investors seeking potentially massive returns, but they also carry significant risks. Their values can plummet rapidly, leading to substantial losses. Additionally, many of these digital assets lack the robust infrastructure and adoption levels that more established cryptocurrencies like Bitcoin possess.
However, investing a small portion of one’s portfolio into these cryptos for risk-tolerant investors could yield substantial returns. I’m firmly bullish on the market’s prospects this year, which could be accretive for everyone. So here are three coins to consider buying.
Render Token (RNDR-USD)
Source: Maurice NORBERT / Shutterstock.com
Utilizing the Ethereum (ETH-USD) blockchain, Render Token (RNDR-USD) facilitates a secure and efficient exchange of GPU computing power for digital rendering tasks. The token has surged to around $11 at the time of writing, up from $3 in January. The massive trading swing and volume show that it’s one of those risky cryptos that bulls are lapping up in droves.
However, not all of RNDR’s price appreciation is speculative. 2023 marked a significant phase for RNDR with the introduction of a new burn-and-mint model following a community vote. This model aims to optimize the token’s economy and its utility within the network.
RNDR is also sometimes stylized as the Nvidia (NASDAQ:NVDA) of crypto. This is thanks to its generative AI and decentralized GPU computing technologies as well as its expanding market cap and valuation.
It’s one of those high-risk tokens that every bull should have on their watchlists due to this fact.
Solana (SOL-USD)
Source: Rcc_Btn / Shutterstock.com
Known for its high throughput and low transaction costs, Solana (SOL-USD) is a strong contender for decentralized app development, despite past stability issues. SOL has also skyrocketed to over $179 per coin at the time of writing, it also has the sixth-largest trading volumes of any coins tracked by CoinMarketCap.
Significant initiatives for 2024 include the introduction of token extensions for complex tokenomics, the launch of Firedancer (a new validator client designed to enhance network throughput and efficiency), and the development of Runtime v2 to improve network performance. These plans seem to have left investors feeling very bullish on SOL’s prospects for the future.
The total value locked (TVL) in the platform surpassed $2.5 billion this month, with all-time sales reaching $5 billion. Also, the NFT ecosystem on Solana reached new milestones with $5 billion in all-time sales volume and over 3.8 million transactions.
Risk in SOL is uncertain, but it’s certainly one of those cryptos for risk-tolerant investors.
Avalanche (AVAX-USD)
Source: Skorzewiak / Shutterstock
Avalanche (AVAX-USD) offers a compelling platform for developers, especially as it aims to solve scalability issues present in other blockchains.
AVAX is high-risk due to the largest token unlock in its history recently, releasing approximately 9.54 million AVAX worth about $320 million. Such token unlocks are critical for adding liquidity to the market but can also increase selling pressure as early investors may seek to realize profits.
Despite its selling pressure, it sits within the top 20 most-traded coins tracked by CoinMarketCap, and has also increased substantially in value, rising to $56, up from around $40 near the end of 2023.
Looking ahead, its focus on technical improvements, such as reducing transaction finality time and introducing optimistic fast finality. It aims to usurp Ethereum’s dominance in the market, which is a risky proposition, but it’s one of those coins that bulls can’t get enough of.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
