My Top 3 POS Coins For Compounded Returns Post 2024
The Best Of All Three Worlds
Proof-of-Stake coins can be exceptionally profitable investment vehicles, especially if you happen to be an early investor. This is an idea I previously explored in an article entitled, “Early Discovery – The Enormous Potential Of Micro-Cap POS Coins”. However, when it comes to risk management, it’s always a good idea to diversify across the following three sectors:
Blue chip projects
Promising projects
Micro-cap projects
I will be highlighting one from each sector. However, in terms of blue chips, I will be taking a look at two.
Blue Chip Projects
When it comes to blue chips, there are two projects that I believe are going to perform exceptionally well, and for different reasons. The first is, of course, Solana. I remained long-term bullish on Solana during the FTX collapse. My view was to simply short sub $10 and then begin a process of accumulation. In terms of speed, cost, and being a layer 1, Solana is a no-brainer, in my opinion.
The staking reward on SOL is also pretty healthy. Generally, within the vicinity of 7%. I see Binance Earn is currently offering up to 7.9% on the 120-day fixed contract. Next up is Polkadot. Yes, it was yet again another difficult decision between DOT and ADA. I am however going with Polkadot due to the staking reward being significantly higher than that of Cardano.
Cardano has also already experienced two enormous bull market rallies. In my opinion, DOT has been overlooked by many investors and is seriously underrated. In terms of the brains behind the project, I also consider Gavin Wood to be more of an “authentic genius”, unlike many others, who I believe have been hyped up in a similar way to SBF. My opinion, of course.
Solana is my coin of choice when it comes to blue chips. However, I thought it important to include Polkadot as well, due to the strength of the project and ecosystem, as well as the fact that DOT is yet to garner the attention it deserves. It is a difficult task to select only one project from each sector. There are so many potential success stories waiting in the wings.
Promising Projects
Once again, selecting a single project is extremely difficult. However, I am going to go with Injective Protocol. I published an article on Injective almost 7 months ago. The staking reward is somewhat similar to that of Solana, and also has significant upside potential, in my opinion. Projects that only entered the public eye during the final stages of the previous bull market stand the chance of enormous growth in the upcoming bull market.
Kaspa is another one that is likely to perform well, even after already experiencing significant gains. The fact that KAS secured these gains in a bear market is also rather impressive, as well as noteworthy. Getting back to INJ, the ecosystem is also growing rather rapidly, which is always a key aspect of layer 1 success stories. There can be no true success without adoption and expansion, in terms of the ecosystem.
Micro-cap Projects
Regular readers will probably be able to guess this one. That’s right, Taraxa! With a hefty staking reward and a minuscule market cap in a niche sector, TARA is well-positioned for power moves. The following excerpt is taken from an article I published in July of this year:
Taraxa utilizes blockDAG technology, which seems to be gaining a lot more attention lately. Kaspa also utilizes blockDAG technology but is a Proof-of-Work coin, whereas Taraxa is a Proof-of-Stake project. Taraxa is an EVM-compatible smart contract platform based on t-Graph consensus utilizing blockDAG, enabling WEB3 to solve real-world problems. With an AI-enabled ecosystem, this project seems to be well-packaged and presented.
Early investors have already experienced phenomenal gains, and in all fairness, the heat is yet to be turned up. The TARA staking reward is currently 17.6%, which when compounded over a couple of years can significantly enhance the size of your stake! A Binance listing in 2024 or 2025 would push Taraxa into an entirely different arena, as an investable asset.
Final Thoughts
Investors looking to harness the power of Proof-of-Stake projects should look at adopting an approach that is somewhat similar to the one I have just outlined. In other words, being able to have a relative amount of stability, while simultaneously being able to compound future gains, especially regarding projects that are likely to experience larger gains. As always, these are my viewpoints. See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.