In this article, we discuss the 5 best cryptocurrencies Redditors are buying. If you want to read our detailed analysis of these currencies, go directly to the 10 Best Cryptocurrencies Redditors are Buying.
5. Polkadot
Polkadot is a crypto solution born from the academic need of identifying and laying out the problems present within existing blockchain systems and rectifying them. As such, the coin, created by Gavin Wood, is one of the most popular in the world with a market capitalization of close to $50 billion. The coin can be used on a platform that allows for trades in different types of assets instead of just tokens.
Coins like Polkadot are mined using the powerful chips developed by semiconductor firms like NVIDIA Corporation (NASDAQ:NVDA).
At the end of the second quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $9 billion in NVIDIA Corporation (NASDAQ:NVDA), up from 80 the preceding quarter worth $6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
4. Monero
Monero is a cryptocurrency launched in 2014 that is famous for the privacy-first features it offers in relation to other coins. One key way in which the currency does that is by making senders and receivers anonymous by changing their digital addresses and hiding transaction details. Another advantage that the coin has is that it is fungible, which essentially means that two coins can be substituted in value without any difference.
Monero is a solid investment for those looking to enter the crypto universe, just like Tesla, Inc. (NASDAQ:TSLA), an EV maker that has also invested heavily in the new technology.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc. (NASDAQ:TSLA), down from 62 in the previous quarter worth $10 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
3. Harmony
Harmony is a cryptocurrency founded by Stephen Tse, a PhD in cryptographic protocols from the University of Pennsylvania. The coin makes use of a sharding process for decentralized applications that allows node times to be reduced and thus the speed and validity times are increased. It uses the Verifiable Random Function for random shard membership. The coin was released in 2017 and has a market cap of $3 billion.
Investors interested in harmony should also check out Visa Inc. (NYSE:V), the California-based payments company.
At the end of the second quarter of 2021, 162 hedge funds in the database of Insider Monkey held stakes worth $27 billion in Visa Inc. (NYSE:V), down from 164 in the preceding quarter worth $26 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE:V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
2. Stellar
Stellar is a cryptocurrency that was released in 2014. The coin has made steady progress over the years and presently had a market cap of over $9 billion. The coin was first geared towards those that wanted to avoid banking. However, in the years since it was launched, the focus has shifted towards helping fintech platforms connect with one another through blockchain technology that makes use of the Stellar coin.
Stellar can become more mainstream through the crypto-related work of Microsoft Corporation (NASDAQ:MSFT), the Washington-based technology company.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 24.8 million shares worth more than $6.7 billion.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
1. Ripple
Ripple is the cryptocurrency used on the Ripple platform, a fintech firm that could go public in the coming months. Ripple recently released a feature called the Liquidity Hub that will give enterprise clients access to crypto assets that include prominent coins like Bitcoin, Ethereum, Litecoin, and Ripple, among others. The cryptocurrency Ripple has a market cap of $118 billion and is presently being traded at around $1.1 per coin.
Crypto coins like Ripple are becoming more popular as firms like Facebook, Inc. (NASDAQ:FB), the technology company headquartered in California, adopt the blockchain.
At the end of the second quarter of 2021, 266 hedge funds in the database of Insider Monkey held stakes worth $42 billion in Facebook, Inc. (NASDAQ:FB), up from 257 in the preceding quarter worth $40 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Facebook, Inc. (NASDAQ:FB) was one of them. Here is what the fund said:
“We continued to keep our learnings from 2020 in mind during the quarter as we sought to increase the up capture of the portfolio. We also made adjustments to the portfolio’s top 10 holdings to increase the participation of select stocks, including Facebook, while trimming our weighting to stable names, which now represent 47% of the portfolio. Our repositioning has been encouraging so far with the portfolio performing better on up days in the market while maintaining good down capture during more turbulent sessions.”
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