How to assess which are the most promising cryptocurrency assets to invest in presents a number of challenges for investors, especially when attempting to approach the matter from the standpoint of a risk-reward ratio (R:R).

Put simply, how much risk are you willing to take for a given amount of reward? Altcoins other Bitcoin and Ethereum are risky assets, but also have high potential upside.

What are the Most Promising Cryptocurrencies?

Reviewing the Most Promising Cryptos

Our top picks are new crypto projects with high potential either on presale now or launching shortly, as investing at a low price point usually holds the most promise for your portfolio – buy low, sell high. Most retail investors FOMO into green candles to buy the top of a bull run, rather than taking the time to research a private sale, presale or ICO.

1. Tamadoge – On presale now set to be the play to earn Dogecoin

Tamadoge crypto

Billed as ‘the P2E Dogecoin’ Tamadoge (TAMA) is a meme coin with added utility as the in-game currency and rewards token for an upcoming NFT-based crypto game.

Followers of crypto will know sometimes the market is irrational and new meme tokens are the next cryptocurrency to explode rather than more academic projects focusing on blockchain technology or applications in industry.

Tamadoge aims to capitalize on that while also having a use case to prevent the ‘pump and dump’ effect that saw e.g. Shiba Inu rise 52 million percent in a year then lose around 90% of its value.

Meme tokens have always delivered the biggest percentage gains and this is an opportunity to invest in a promising meme coin before it launches and has its initial hype cycle. Unlike some meme coins like Dogecoin, TAMA is also deflationary with a fixed maximum supply.

Join 23,000 members in the official Telegram group (admins will not DM you first) or find the white paper at the link below.

2. Battle Infinity – Promising metaverse game with strong marketing

New most promising cryptocurrencies Battle Infinity

In terms of upside potential, the most promising cryptocurrencies after those at presale is those at ICO – Battle Infinity has now sold out its presale, in record time raising 16,500 to hit its hard cap after just 24 days.

Early investment in an initial coin offering often results in a high ROI compared to buying an asset already mid bull-cycle. This strategy typically outperforms ‘buying the dip’ during a market correction also.

Battle Infinity is about to have its IDO (an ICO on a DEX) on PancakeSwap – allowing early investors to buy its native token IBAT, which will be the play to earn utility token in its upcoming metaverse game. IBAT is a BEP-20 token on the Binance Smart Chain with a 10 billion fixed supply.

Investors can take part on launch day with a MetaMask or Trust Wallet and a PancakeSwap account. IBAT is potentially another promising altcoin to watch in Q4 2022.

The early level of investor interest shown so far could see this be the next cryptocurrency to explode when its listed on more crypto exchanges including CEX listings – read more about the project and find the whitepaper on battleinfinity.io.

3. Lucky Block – #1 NFT competitions platform

LBLOCK price chart

Lucky Block (LBLOCK) started trading on public markets in early 2022 and quickly pumped to a market cap in the hundreds of millions, reaching an all time high of $0.0097 when it was listed on LBank, after previous having launched on PancakeSwap.

Lucky Block is building a global decentralized competitions platform that will be fairer and more transparent than the offerings from traditional incumbents, and can be taken part in by owning one of their NFTs or buying LBLOCK tokens.

Crypto has seen various types of gaming products over the years – betting decentralized apps (dApps) predated the DeFi explosion as among the first to take off. But as far as jackpot products goes Lucky Block is the first of a kind in a number of ways.

For one thing, the jackpot is divided in a unique way, so that 70% goes to winners, 10% is distributed to all token holders, 10% to charity and 10% back to Lucky Block for marketing and development.

Then there’s the Lucky Block transaction fee. Every time the token is sold on a decentralised exchange, a fee of 12% is incurred, of which 4% goes to the lottery pool, 4% to the liquidity pool, 3% to a NFT and gaming royalty fund and 1% burn.

LBLOCK is currently priced at around $0.001, having corrected after the 2022 bear market – presenting an opportunity to invest at a low price point, with more CEX listings planned now that Lucky Block have completed their V2 token upgrade.

Rewards for all token holders provides revenue stream

To receive rewards, token holders must hold LBLOCK in a DEX wallet such as Trust Wallet or Metamask. Trust Wallet is probably the better pick because Lucky Block is built on the Binance Smart Chain and Trust Wallet is a Binance product, hence the better integration with swaps on the chain.

The Lucky Block app is where the $5 tickets for the daily prize draws can be be bought, which began in May 2022 with two winners of $1 million each.

Lucky Block is an excellent example of a Web 3.0 product that has significant disruptive potential. Although it doesn’t have a Sharpe ratio because it only started trading two weeks ago, we think the risk-reward potential at these prices is strong. The world wide online jackpot betting market is valued at around $330 billion, according to QY Research Group.

4. Solana (SOL) – Layer 1 Blockchain seen as an “Ethereum killer”

Solana most promising cryptocurrencies

Solana is a decentralised Layer 1 blockchain that is highly scalable with transaction per second of up to 50,000. However, it is still experiencing teething problems that have led to a number of outages. Nevertheless its technology is gathering plentiful support.

The Pyth trading network supported by institutional trading houses in Chicago and New York is perhaps the most high profile success of the project. Its NFT and DeFi networks are expanding at pace too.

Despite a correction to a low of $25 in 2022, many investors are bullish on SOL long term. For those that need more information on how to buy Solana, see our guide.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

5. Polygon (MATIC) – Layer 2 Blockchain for Ethereum

Polygon price chart

Polygon is designed to solve the problem of Ethereum’s lack of scalability in its current form. Its core is a composable modular system that makes it highly flexible. As such its Polygon SDK has become a favourite of blockchain developers.

It is a Layer-2 solution that has birthed infrastructures such as Plasma, Optimistic Rollups, zkRollups, and Validium as well as sidechains such as its Matic platform – MATIC is the project’s native token and ticker symbol.

Polygon may be one of the most promising cryptocurrencies of 2022 after its July Disney accelerator news which caused a large pump.

6. Avalanche (AVAX) – DeFi and enterprise blockchain base layer

AVAX

Avalanche is another platform for launching DeFi applications and enterprise blockchain deployments in an environment of interoperability with a view to scalability.

Developers can get up to speed relatively quickly because of its composable approach to creating applications and custom blockchains. The protocol went from strength to strength in 2021, leaping into the ranks of the top coins.

While AVAX has corrected in 2022, many investors still consider it one of most promising cryptocurrencies of 2022 and later years, bullish in the long term.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

7. Near Protocol (NEAR) – using scalable sharding to solve scalability

NEAR price chart

NEAR uses a Proof-of-Stake consensus mechanism that features a sharding architecture to scale transaction throughput. Sharding can be though of a system that splits up the blockchain into distincy but connected parts to increase the efficiency of transaction processing.

As NEAR explains, it PoS sharding is unique in that it can “scale linearly with the number of shards, thereby having the ability to satisfy the demand for transactions as more and more users start to use NEAR”.

As with many cryptocurrencies, it’s also possible to earn interest on NEAR while holding it.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

8. Fantom (FTM) – an under the radar Layer 1 blockchain

Fantom price chart

Fantom is another Layer-1 blockchain, but hasn’t yet received the same sort of attention as Solana. It uses a single consensus layer to underpin multiple possible execution chains.

The end goal of the project is the fashioning of an ecosystem of execution layers aimed at catering for a multitude of use cases, all the while enabling scalable and cheap transactions on its novel Lachesis Protocol.

Read more about how to buy Fantom step by step or visit eToro at the link below where FTM is listed.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

9. Binance Coin (BNB) – coin of the world’s largest crypto exchange

Binance coin price chart

Binance Coin is the native token of the Binance online exchange. It started life as a way of providing exchange customers with cheap trading fees. Binance is today the largeset crypto exchange.

But is is also much more than an exchange having launched the Binance Smart Chain and the Smart Chain token which is a wrapped version of BNB. BSC is a fast-growing environment for decentralised applications.

Above we chart the BNB/BTC pair rather than the USDT pair to illustrate how well Binance Coin is outperforming as an altcoin – i.e. outpacing Bitcoin in relative value.

If you want to delve a little deeper into which are the best crypto exchanges, read our guide to finding the one that fits your needs.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

10. Decentraland (MANA) – NFT and metaverse pioneers

MANA price chart

Decentraland is a decentralised, explorable, 3-D virtual reality platform, but without the need for VR goggles. It is built on the Ethereum blockchain.

The platform allows its users to take ownership of parcels of digital land, purchased with LAND tokens bought with the MANA native token. Users leverage NFT tech to create their own distinctive unique environments in a virtual world. Brands, companies and individuals have started flocking to its metaverse world.

For those interested in investing in promising NFTs rather than the most promising cryptocurrencies, see our NFT guides.

Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

How We Ranked the Most Promising Cryptos

Some of the factors and methodology we considered to rank the most promising cryptocurrencies are explained below:

Measuring Crypto Price Volatility

Let’s begin with how to measure risk when investors buy cryptocurrency. Price volatility is naturally the metric that springs to mind. If prices are prone to swing about erratically there is more risk to your capital.

When it comes to crypto, price volatility can scare off investors more used to the relatively sedate environment of the equity markets, although volatility there may pick up this year due to inflation and the rising risks associated with central bank policy missteps.

However, if an investor takes a longer-term view – say three years – then the risk-reward ratio is not quite as scary as it appears at first glance, or as media coverage might lead you to believe.

Over longer time scales a number of top cryptocurrencies stand out, and we reviewed some of those potentially most promising cryptocurrencies above.

Using the Sharpe Ratio to Analyse Crypto Assets

We will use a financial metric called the Sharpe ratio to measure how much return has been achieved historically for a given amount of risk. Clearly the Sharpe ratio, like all other financial metrics, cannot predict the future, but it does provide a helpful tool for comparison between different coins and between crypto as a whole and other asset classes.

Next, we want to look at the prospects for future earnings, which is a tough call in traditional asset classes, never mind crypto.

For future earnings, let’s treat crypto like other tech start-ups

Many crypto projects have little earnings to speak of, but in that respect they are arguably no different to a tech stock of a newish company still building its product and market penetration.

In fact investors are increasingly viewing the crypto world and tech stocks as similar, certainly if the price correlation between the two is anything to go by.

When the Nasdaq does well so too does the crypto complex – the two have, over the past few months, shown very high positive correlation, meaning their prices move in the same direction.

So if we should analyse crypto projects in a manner not dissimilar to how we treat tech stocks, then their technology and prospects for securing future market share in their addressable markets are key.

Therefore our selection has a bias towards blockchains that are solving the scaling problem, such as Solana, as well as those already generating profits, namely exchange tokens like BNB; those that make good use of the special characteristics of blockchain tech such as Lucky Block.

Others of our choices are essential to the ecosystem such as Avalanche, or have well-developed technology with a lead in markets that are likely to develop strongly over the near to medium term such as Decentraland and its NFT-powered metaverse technology.

With the exception of our first selection, Battle Infinity, which is a brand new crypto presale, we used a screener, to find crypto with the best 3 year Sharpe ratio and a reported market capitalisation of $5 billion of greater.

So what is the Sharpe Ratio?

Invented by Nobel prize winning economists William Sharpe, the Sharpe ratio is a measure of risk-adjusted returns. So it analyses returns based on the amount of risk that was taken to achieve the given return.

Sharpe ratio assumes that the best assets are those that combine lower risk with high returns.

Using his version of the Sharpe ratio to measure risk-adjusted return, crypto analyst Willy Woo has shown that bitcoin – the oldest of all crypto assets – beats all other assets, including stocks and government bonds.

This is a good illustration of our earlier contention that investing in crypto – or specifically, investing in Bitcoin – is actually not as risky as common narratives suggest.

sharpe ratio - bitcoin and other asset classes -most promising crypto

Bitcoin returns are less risky on a risk-adjusted basis over 4-year periods than other major asset classes

The ratio is determined by comparing the returns from an asset or portfolio of assets with the return from risk-free assets such as US Treasuries, and then dividing that product by the standard deviation of returns:

Sharpe Ratio = (Rp – Rf) / σp

p The particular portfolio of financial assets
Rp The return expected from the portfolio
Rf The risk-free rate of return
σp The portfolio’s risk – the variance (sigma) is expressed as the standard deviation of returns

We ran the numbers through a crypto screener, sorting for those with the best Sharpe ratio over three years.

A good Sharpe ratio figure is 1.00 and above, with 2.0 and above seen as very good.

An uneven distribution of returns can skew the results, which perhaps explains Solana’s very good score given its shorter lifespan. But with that proviso in mind, our table shows a range of 2.46 (Solana) to 1.46 (Crypto.com), so all have a good or very good Sharpe ratio for the most recent three-year period.

Crypto asset Ticker Price (USD) Current Market Cap ATH (USD) % Down from ATH Sharpe Ratio (3 years)
Solana SOL 106.05 US$33,677,407,907 259 38 2.46
Polygon MATIC 1.88 US$14,074,253,155 2.9049 3 2.00
Avalanche AVAX 90.88 US$22,290,019,055 146 44 1.92
NEAR Protocol NEAR 11.86 US$7,521,143,487 20.39 4 1.87
Terra LUNA 53.95 US$21,710,126,319 103 5 1.86
Fantom FTM 2.14 US$5,443,126,540 3.4708 63 1.68
BNB BNB 415.57 US$68,581,281,864 690 30 1.63
Decentraland MANA 3.20 US$5,858,671,840 5.84 46 1.59
Chainlink LINK 17.66 US$8,245,958,401 52.68 50 1.53
FTX Token FTT 45.17 US$6,228,183,754 85 33 1.48
Ethereum ETH 3109.89 US$371,429,419,830 4848 21 1.47
Cronos CRO 0.52 US$13,128,401,387 0.9594 44 1.46

In the table above we find three exchange tokens. This is not too surprisingly because it is one of the best current use cases of a crypto token – to provide discounted fees to exchange users.

FTX Token (FTT) is performing well on its FTT/BTC pair, and may be one of the most promising cryptocurrencies in future years.

The Verdict

A common mantra in crypto investing is to keep a diversified portfolio to mitigate risk – in asking what are the most promising cryptocurrencies and reviewing several above, we’ve included both new and old cryptos.

We first reviewed a promising crypto presale showing a high level of early investor interest, Tamadoge. Then an upcoming ICO – Battle Infinity – and finally we included some top 10 crypto assets by market capitalization – such as Binance Coin (ranked #5 on CoinMarketCap).

Another important piece of crypto advice is to pick altcoins that are outperforming Bitcoin – BNB which has been in a long term uptrend against BTC for years, and new token sales tend to well outpace Bitcoin especially immediately after launch when the hype is highest.

Tamadoge (TAMA) - Next Big Meme Coin

Our Rating

Tamadoge
  • Beta Sale Ends Sept 2022 - tamadoge.io
  • Deflationary, Low Supply - 2 Billion
  • Move to Earn, Metaverse Integration on Roadmap
  • NFT Doge Pets - Potential for Mass Adoption
  • Play to Earn Utility - Rewards Token
Tamadoge

Battle Infinity - Latest Metaverse Game

Our Rating

Battle Infinity
  • Presale Sold Out Early - battleinfinity.io
  • Upcoming Listing on PancakeSwap
  • Fantasy Sports Themed Games
  • Play to Earn Utility - IBAT Token
  • Powered By Unreal Engine
  • Solid Proof Audited, CoinSniper Verified
Battle Infinity

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