Editor’s note: It’s clear from the feedback that many of you want to hear more about the big opportunity in crypto. The questions continue to roll in after Stephen’s successful event last week. So, starting today, we’re kicking off a special “Crypto Week” in The Jolt.
By the end, you’ll have a great understanding of the urgency of the opportunity in crypto and be equipped to take advantage as Wall Street money rushes into the space.
Today, Executive Editor Chris Reilly kicks things off by looking at the lay of the land. Which large, medium, and small cryptos should you buy, and which should you avoid?
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After surging to an all-time high, bitcoin (BTC) has taken a breather... now at about $114,000 as I type.
But the world’s largest crypto is still up 21% this year (3X the S&P 500)...
And its market cap now sits at $2.26 trillion.
To put that into perspective, if bitcoin were a publicly traded company, it would be the sixth-largest in market value… trailing only Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Google (GOOG), and Amazon (AMZN).
More so than any other asset class, cryptos are “top heavy.” Bitcoin alone accounts for almost half the crypto market. Together, bitcoin and Ethereum (ETH) make up around 70% of the crypto space.
As you can see below, the entire crypto space is still small. In fact, the market value of every crypto in existence is roughly equal to the market value of one company: Microsoft.
Meanwhile, hundreds of thousands of lesser-known cryptos make up the rest of the market.
And that’s where the biggest gains are happening lately.
Port Finance (PORT) for instance, is up 3,145% this year. AI Network (AIN) is up 854%. And Sora Grok (GROK) is up a whopping 13,649%.
These are giant companies with decades of success under their belts.
Icons like McDonald’s (MCD), Coca-Cola Co. (KO), and Walmart (WMT). Providers of basic goods like Johnson & Johnson (JNJ) and Procter & Gamble Co. (PG). Dominant brands like Nike (NKE)… AT&T (T)… and Starbucks Corp. (SBUX).
Crypto is completely different. The vast majority of cryptos are essentially startups.
Here are the six biggest:
#1 is bitcoin. It’s essentially digital gold, a store of value outside the legacy financial system. Stephen believes it will eventually surpass $1,000,000.
#2 is Ethereum. Ethereum is a platform business. Stephen says it’s like “the greatest tech stock the world has ever known.”
It’s the “base layer” on top of which programmers are building world-changing disruptive businesses. Even better… it’s making real money from all the activity happening on its blockchain. Roughly $32 billion worth of value settles on Ethereum every day.
Stephen predicts ETH will hit $10,000 this cycle—a 185% gain from here.
#3 is XRP (XRP)... Stephen doesn’t recommend it. It has terrible tokenomics (one of the most important drivers of crypto prices). And its business is shrouded in mystery.
#4 is Tether (USDT)... the largest and most popular stablecoin in the world. It raked in $14 billion in profit last year with just 150 employees. That’s $93 million per employee. No other company comes close.
#5 is BNB (BNB)... a Chinese cryptocurrency exchange. According to Stephen, it essentially copied and pasted Ethereum’s code and applied it to executing cheap, fast crypto transactions.
And #6 is Solana (SOL)… one of Stephen’s favorite large cryptos along with Ethereum.
Now, let’s look at the “mid cap” cryptos.
... it’s the speculative crypto token with a fluffy dog mascot.
Now worth more than United Airlines Holdings (UAL)... Kellogg’s (K)... and M&T Bank Corp. (MTB).
Although Stephen doesn’t recommend “memecoins”... DOGE’s run has been nothing short of spectacular. Over the past 10 years, it’s surged 116,000%. Enough to turn a small $1,000 investment into $1.16 million.
Then there’s Cardano (ADA), the tenth largest crypto, with a market cap of $26 billion.
Cardano is another “base layer” crypto... meaning it’s the foundation on which dozens of other cryptos can be built.
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So, what’s wrong with Cardano? In short, Stephen says it has almost no functional applications built on its chain. And nothing of importance is being built on Cardano. Its price is mostly based on hype instead of actual demand for the token.
What’s more, Cardano’s tokenomics is a mess. 33 billion Cardano tokens are on the market today, with another 12 billion set to hit the market over the next few years. Make no mistake, that big influx will diminish its value.
Stay clear of Cardano.
Out of these, Stephen really likes UNI.
Think of Uniswap like the new Nasdaq. It’s a “stock market” for cryptos, built on the blockchain.
Every Uniswap trade is processed by code without any human involvement. It completely cuts the middlemen out of the transaction. This is only possible because Uniswap runs on the blockchain.
Uniswap isn’t some rinky-dink operation, either. It’s a multibillion-dollar business. And it’s only one of the game-changing companies being built on the blockchain today.
According to Stephen, this is where some of the biggest gains will be made over the next 12 months as Wall Steet comes rushing into crypto.
The problem is that 95% of these tiny cryptos will fail.
The key is to identify the ones that are solving real problems.
In Stephen’s premium crypto advisory, RiskHedge Venture, he dives deep into the hidden gems with A+ tokenomics. Real businesses making real money... with the potential to appreciate by at least 1,000%.
If you’re interested in coming onboard, now’s the best time to do it with our special temporary sale for new members.
See you for Day #2 of Crypto Week tomorrow.
Chris Reilly
Executive Editor, RiskHedge