Looking for a way to boost your crypto portfolio returns? You might want to add a high-risk, high-reward crypto to your portfolio that can deliver superior investment returns during a time of macroeconomic uncertainty.
Three high-risk, high-return cryptos that stand out right now include Dogecoin (DOGE -4.37%), ApeCoin (APE -2.00%), and XRP (XRP -2.95%). These all have enormous upside potential, but they all carry with them huge risk as well. Are they right for your portfolio?
1. Dogecoin
Dogecoin is the ultimate meme coin. Currently, it's trading for mere pennies, but if you check out social media, you'll find plenty of people convinced that they'll become crypto millionaires if they just hold on to their Dogecoin long enough. You need to be on the right side of investor momentum, though, to profit from Dogecoin, which last had a major run-up in price back in early 2021.
Image source: Getty Images.
That's why the current setup for Dogecoin looks promising. It saw a 100% rise in the span of a few days as a result of incessant speculation that Twitter would look for ways to integrate Dogecoin as a payment option.
The big wildcard here is Elon Musk, generally acknowledged to be the "Dogefather" and the highest-profile backer of Dogecoin. In the past, Musk has signaled his readiness to try to make Dogecoin a "global standard" for the world financial system. That's most likely a bit of hyperbole, but it's clear that if Musk is really serious about Dogecoin, it could soar even higher. Just be prepared for plenty of volatility along the way.
2. ApeCoin
When ApeCoin started trading back in March, it came with an enormous amount of buzz and hype. But it has never really delivered over the past seven months, and it is now trading more than 90% below its all-time-high.
ApeCoin is the governance token of the Bored Ape ecosystem, which is based around the Bored Ape Yacht Club, still the hottest NFT collection in the world. The floor price for a Bored Ape these days is $91,489, so there continues to be a certain amount of buzz surrounding this celebrity-backed NFT collection.
The problem, however, is that the Bored Apes are extremely polarizing. For all the Bored Ape supporters out there, there are also plenty of haters. Moreover, the NFT market collapsed in 2022, which has driven down the price of NFTs across the board. As a result, much of the initial allure has evaporated.
The good news is that the Bored Ape ecosystem continues to expand to include a new Bored Ape metaverse world and plenty of in-real-life (IRL) Bored Ape brand extensions. Thus, even if the NFT market doesn't recover immediately, there are other paths to success for ApeCoin.
3. XRP
Finally, we have XRP, which was a crypto darling just a few years ago. But then along came the Securities and Exchange Commission, and things don't look as bright anymore for XRP. In 2020, the SEC filed a lawsuit against XRP, alleging that it was an "unregistered security," not a "crypto." That pretty much put the brakes on investor enthusiasm for XRP until recently. The company also faces class action litigation making similar allegations.
But the story of XRP is not over. Speculation continues to circulate that XRP is near a settlement with the SEC, and that the lawsuit could be resolved by early 2023. If that were to happen, then the future could look bright again for XRP.
That's because XRP is the token that powers the Ripple payment network. Before the SEC lawsuit, this payment network was being hyped as the cheapest, easiest way to send cross-border payments. That points to the system's potential. The only problem is that XRP -- trading now for just $0.40 -- could easily go to zero if it remains bogged down in legal issues.
What is your risk tolerance?
All cryptos come with significant risk and volatility. These three cryptos -- Dogecoin, ApeCoin, and XRP -- come with an extra dollop of risk and volatility. They might soar in value, or they might plummet to zero.
Dogecoin is trading for mere pennies these days, XRP is trading for less than a buck, and ApeCoin is trading for less than the price of a cup of coffee. You get what you pay for, they say, and the same could be true for these cryptos. But if you are willing to accept this deal, you might also leverage these cryptos into a huge financial windfall.
