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The cryptocurrency market is no stranger to volatility and astronomical gains. While many investors are flocking to the more established digital currencies, like Bitcoin (BTC USD) And ether (ETH-USD), the idea of investing in lesser-known micro-cap cryptocurrencies has a certain appeal. These high-potential “degenerate” cryptos can turn a small gamble into a life-changing amount in an instant.
However, it is important to understand the risks associated with these small-cap cryptocurrencies. They are very susceptible to massive fluctuations and the probability of incurring losses is much higher than the probability of making significant profits. However, if you have a risk appetite and are willing to take advantage of the huge upside potential, it might be worth investing some of your “fun money” in these high-risk, high-return cryptos and even more, if any, gains from them.
Here are three to check out:
DojoSwap (DOJO-USD)
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DojoSwap (DOJO USD) is similar to Uniswap (UNI USD). It is an automated market maker protocol (AMM). The difference is that Uniswap is on the Ethereum blockchain, but DojoSwap is enabled Injective (INJ USD).
If you regularly explore the crypto markets, you know what Injective is. It’s been one of the biggest winners so far, and that too reached a valuation of $4.86 billion before falling back down to $2.4 billion at the time of writing. I think we’ll probably bottom out from here.
But in short, Injective is a blockchain focused on decentralized finance. It is a proof-of-stake blockchain with over 10,000 TPS and all the necessary features to become a major DeFi ecosystem in the coming years. I believe DOJO could benefit from its tailwinds in the coming years if it becomes successful.
DOJO currently has a market cap of less than $1 million At this point, the company could quickly deliver multibagger returns if Injective manages a quick turnaround and DOJO receives more attention. However, I would like to warn you that the dilution here could be enormous. Currently, only 0.19% of the cryptocurrency’s total supply is in circulation. That means it would need to have a market cap of $507 million to maintain its current price of 63 cents if all available tokens were released today. Of course, it won’t dilute overnight and it will likely take years or even decades. But even a fraction of this dilution can cause problems in the future.
Yak DAO (YAK-USD)
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Yak DAO (YAKS-USD) describes itself as first leisure object DAO, with a focus on sustainable, eco-friendly real estate investments that aim to have a positive impact on the environment. 30% of YAKS real estate revenue goes toward buybacks and staking rewards for YAKS token holders. So you indirectly invest in luxury real estate by buying the token.
Real-world asset (RWA) blockchain projects are one of the hottest investment ventures in this crypto bull cycle. I think Yak DAO could be one of the bigger names in this space once it receives more attention. It is still a very new project.
Yak launched its token on April 2 after a strong debut on TokenFi’s launchpad. The roadmap looks convincing and plans to offer first-class locations worldwide in the next few years. Yak also has partnerships with leading travel and hospitality companies.
The project recently secured 43 million YAKS via FlokiFI, worth $2.2 million. That’s a pretty impressive sum for a project that isn’t even listed on CoinMarketCap yet.
Serenity Shield (SERSH-USD)
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Serenity shield (SERSH-USD) is another micro-cap cryptocurrency that can deliver profits, but I’m putting it at number three on this list because the path forward isn’t as clear.
Serenity Shield “solves” one of blockchain’s biggest problems. This is done using the patent-pending StrongBox® DApp technology. A major problem with cryptocurrencies is that after a person dies, their loved ones no longer have the opportunity to access and inherit their cryptocurrencies. People with a large crypto stash can set up some nominees on the StrongBox protocol, which automatically notifies nominees if they fail an activity trigger.
It has a Market cap: $1.8 million and has declined quite sharply recently. However, if you believe this technology will gain widespread adoption in the future, it could be a good choice in the long term.
At the time of publication, Omor Ibne Ehsan did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.