In early April, the Bitcoin price looked set to dip below $5,000. Cryptocurrency commentators, therefore, started speculating on the possibility of a long-term Bitcoin growth trend reversal.
Thankfully, Bitcoin has held steady well above $5,000. Much more importantly, as we head into May, Bitcoin and every altcoin on the cryptocurrency market is back in the green. The only question is, what altcoins are now the best buy for investors looking to profit from a (potential) full market recovery?
How to Choose May 2018’s Best Altcoin Offerings
Prior to listing the best altcoins to buy in May 2018, it is important to understand why some coins are more likely to increase in value than others.
Put simply, altcoins which represent the best buying opportunity at present, are those which are currently priced significantly below previous all-time highs. This is due to the fact that long-term trends almost always see such coins retest past all-time highs during market recovery periods.
Ripple XRP - The Best Buy for Long-Term Holders Only
Priced at just $0.65, Ripple XRP has fallen spectacularly from a high of almost $4 set in early January.
What is more, many argue that Ripple XRP is still significantly overvalued. What makes XRP a sure bet long-term, however, is the fact that Ripple Labs payment settlement technology has huge support from big banks and traditional payment processors.
If you have never heard of DigiByte, you are not alone.
Despite having been in constant development since 2014, DigiByte (DGB) has an extraordinary low cryptocurrency market profile.
What makes DGB so interesting, however, is that as well as being (arguably) superior to coins like Litecoin from a blockchain technology perspective, DGB has a current market price of just $0.028.
Having held value for the best part of 2018, DigiByte last peaked at $0.10 in early January. This means that in the event of a new cryptocurrency boom, DGB will likely retest this price point and generate substantial returns for investors in the process.
Cardano - The Best Buy for Mid to Long-Term Investors
Last having peaked at $1.08, Cardano (ADA) is another altcoin which has recently plummeted to less than a quarter of its previous value.
Cardano, however, is the only altcoin on the cryptocurrency market supported by a peer-reviewed whitepaper. - This and the only form of cryptocurrency future-proofed against quantum computing security threats, any kind of future scalability concern, and headed by none other than former Ethereum cocreator, Charles Hoskinson.
Litecoin - Significantly Undervalued but with Huge Growth Potential
Starting 2017 at just $16 in value, Litecoin was one of last years biggest altcoin winners, reaching as high as $400 by early January. This being the case, current Litecoin prices of $127, mean that in theory, Litecoin could easily triple in value in 2018.
Of course, no altcoin is guaranteed to retest former prices highs at any point. For the past 2-years, however, Litecoin has gained momentum due to developers focusing on using the Litecoin Lightning Network, to enable faster, (almost) fee-free Bitcoin transactions.
Because of this, many cryptocurrency commentators believe that Litecoin will eventually hold steady at a full tenth of Bitcoin’s own market price.
Xuma (XMX) - Completely New but Definitely Worth Watching
Breaking with our rundown of coins which are likely to retest past price highs, we come to Xuma Coin (XMX).
Completely new to the cryptocurrency market, Xuma is arguably one of the most exciting altcoin offerings of 2018, for one simple reason. As a world-first with regard to cryptocurrency and blockchain technology, Xuma coin is bringing to market a completely decentralized database storage service. This is significant as at present, blockchain apps and new cryptocurrencies are built on closed source centralized development platforms like GitHub.
Providing blockchain developers with an easy to monetize, secure, and censorship free alternative to the likes of GitHub, Xuma is guaranteed to soon start piquing serious investor interest.
Always Have an Exit Strategy
When investing in cryptocurrency, it is just as vital to know when to exit the market, as it is what coins to invest in. What inexperienced investors may want to do in this case, is invest in best buy coins like Cardano and DigiByte, with a view to selling as soon as coins do retest previous highs.
Of course, no one really wants to sell just as cryptocurrency prices start heading for the moon. Cryptocurrency market booms, however, are always followed by significant price pull-backs. All investors, in this case, should plan to sell at definite price points, before waiting for new bear market opportunities to reinvest in new digital assets.
Disclaimer: Do not take this article as professional investment advice. We are not a financial institution.