In this article, we discuss the 5 high risk, high reward cryptocurrencies to buy according to Reddit. If you want to read our detailed analysis of these currencies, go directly to the 10 High Risk, High Reward Cryptocurrencies to Buy According to Reddit.
5. Phantasma
Phantasma is a cryptocurrency favored by gamers and NFT enthusiasts because of low minting and transaction fees as well as the use of a smart technology that will make the currency the first fully carbon neutral coin in the world. This tech, called smartNFTs, can change according to conditions, allowing developers of games to make in-game changes, something not possible with traditional NFTs.
Investors should also keep Alphabet Inc. (NASDAQ:GOOG), the parent company of internet search engine Google, on their radar for the crypto space.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $7.3 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
4. Kalao
Kalao is a cryptocurrency based on the Avalanche blockchain. The network collects different NFTs in a single marketplace, eliminating the need for jumping from one digital platform to another. It is also developing NFTs for the 3D virtual reality experience. The coin has a market cap of $22 million and is presently being traded at around $1 per coin. Even though the currency is designed for VR, it can work on other platforms as well.
Helping crypto gain a foothold in the finance world are firms like CME Group Inc. (NASDAQ: CME), the Illinois-based derivatives exchange that accepts crypto trades on the platform.
At the end of the second quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $2.6 billion in CME Group Inc. (NASDAQ:CME), up from 60 the preceding quarter worth $2.3 billion.
In its Q1 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and CME Group Inc. (NASDAQ:CME) was one of them. Here is what the fund said:
“CME has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
3. Altura
Altura is the cryptocurrency of the Altura platform that allows game developers to transact in smartNFTs. These NFTs can be minted and distributed within games. The platform aims to build an easy-to-use interface for the creation of such smartNFTs. There are a maximum of 1 billion Altura coins out of which 220 million are in circulation while 450 million are locked in vesting contracts. Around 330 million will be released to private investors over time.
Another solid bet in the crypto marketplace is Mastercard Incorporated (NYSE:MA), the New York-based payments processing firm that has started integrating crypto onto the electronic payments solutions it offers, such as credit cards.
Among the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE:MA) with 5.8 million shares worth more than $2.1 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:
“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”
2. Atari
Atari is a cryptocurrency based on the Ethereum blockchain. The coin was designed by gaming firm Atari specially for the interactive entertainment industry. It became available for public trading in October 2020 after three private sales rounds. Atari is developing a suite of games, entertainment products, and casinos that will make use of the Atari coin for transactions. The platform also markets skill-based video games played for Atari tokens.
The rise of coins like Atari has been facilitated in large part by celebrities like Elon Musk, the eccentric billionaire and chief of Tesla, Inc. (NASDAQ:TSLA), the California-based EV maker.
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.”
1. Paribus
Paribus is a cryptocurrency powered by the Cardano blockchain. It has a market cap of $12 million. The coin has huge potential moving forward as the platform on which it operates is designed for evolution along with the changes in crypto assets over time. Some of the features offered by the platform include NFT collateral-based loans, NFT staking, as well as token profit-sharing at low fees and high speeds.
Helping crypto make the leap from a concept to the real world are firms like NVIDIA Corporation (NASDAQ: NVDA), the microchip maker from California.
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.”
You can also take a peek at 16 Most Valuable Entertainment Companies in the World and 15 Fastest Animals in the World.
