Dollar cost averaging in crypto positions is a great way to operate in the crypto market. The crypto market is subject to rapid fluctuations, so a lump sum investment often doesn’t make sense. However, dollar cost averaging makes the most sense in the current bull market as many cryptos carry high downside risk. So investors can still buy in at discounted prices when the market falls and benefit from the huge upside potential of these tokens as they recover over time.
However, this is a strategy commonly used on the most well-known cryptos, such as: Bitcoin (BTC USD) And ether (ETH-USD). However, you can also invest dollar-cost averaging (DCA) in overlooked cryptos if you’re looking for outsized profits. In this case, I would warn that the risk is significantly higher because no one can say whether these projects will be successful in the long term or not. And while Bitcoin, Ethereum and other mega-cap tokens are proven long-term compounders, they are unlikely to see high returns from here.
If you have some “fun money” or loose change to invest in riskier projects, it may make sense to DCA the following overlooked cryptos.
ChainGPT (CGPT-USD)
Source: Iryna Imago / Shutterstock.com
ChainGPT (CGPT-USD) has seen some bearish price action in recent months. However, I think the bottom could be near soon as it approaches strong historical resistance levels. I think this project has very solid use cases that could make it a dollar-average cryptocurrency in the long run. ChainGPT allows users to create smart contracts using a simple AI prompt and also audit those contracts using AI.
However, this is just the main use case here. ChainGPT in particular has much more to offer for its small size. It has its own AI chatbot, Telegram bot, NFT generator, messaging bot, AI trading assistant, launchpad, and blockchain cybersecurity. Conveniently, these features are all available on one platform.
The projects The market cap is just $83.5 million. And since AI is still new, AI tools on the blockchain are just beginning to gain popularity. Therefore, I think it could be a good opportunity to dive into projects exposed to AI. The upcoming off-season could bring a swarm of traders with lots of money but no time to browse the market. AI bots could be the perfect tool for these people. So I think now is the right time to look into CGPT.
Render (RNDR-USD)
Source: Maurice NORBERT / Shutterstock.com
Make (RNDR USD) is a pretty big crypto project, but is still pretty overlooked. Accordingly, I think Render seems to be a solid choice OpenAIs Sora text-to-video model appears.
Render allows users to sell their GPU computing power to the blockchain in exchange for RNDR tokens. Subsequently, other individuals or large companies can purchase the entire rendering power using RNDR tokens. Therefore, this project is essentially an exchange to provide electricity. On this basis alone, I am confident in Render’s future prospects. GPUs and rendering chips are becoming very expensive and many startups and individuals find it impossible to get affordable hardware.
Many of these companies and users now use the Render Network and purchase rendering power directly. I believe the number of users could grow exponentially over time, especially if text-to-video models become mainstream. The The market cap for this project is $3.3 billion at the time of writing.
Toncoin (TON-USD)
Source: Shutterstock
Telegram is becoming a very popular app, especially among crypto users. The app recorded over 1 billion downloads in 2021. From 2024 onwards, this number is likely to be significantly higher, as many social media users feel censored on mainstream platforms. Many of these users are now choosing to join niche Telegram groups instead.
ton (TON USD) actually stands for “Telegram Open Network”, which is run by a group of community developers. It is very decentralized and an open source Layer 1 Proof of Stake blockchain. The project aims to have 500 million users in its ecosystem by leveraging decentralized apps integrated with the Telegram messenger.
A few years ago this would have seemed pretty ambitious, but with Telegram experiencing an explosion in popularity recently, I think it’s entirely doable. The current price of the token The development has been very optimistic, with this cryptocurrency gaining 372% over the past year.
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.
