With Bitcoin prices skyrocketing 1,364% from 2017 to 2018, investors are looking for the next cryptocurrencies to watch in 2018 with Bitcoin-like potential.
Of course, with over 1,400 cryptocurrencies tracked on CoinMarketCap.com, that's easier said than done.
That's why we are simplifying the process of finding the best cryptocurrency investments for Money Morning readers by revealing the five cryptocurrencies on our 2018 watch list.
To create our list of cryptos to watch in 2018, we only looked at tokens and coins that met three criteria.
- The underlying blockchain technology has to solve a problem.
- The coin or token has to have the potential for widespread adoption.
- The coin must be $10 or less, so investors can get started with an affordable initial investment and limit their risk.
We developed this criteria because it weeds out entirely speculative coins and scams, leaving only coins with the potential to explode in value. Just look at Ethereum, which met all three criteria at the start of 2017.
The Ethereum platform allows contracts to execute based on preapproved conditions, which solves real-world problems in finance and law.
For example, take a look at the housing market. Instead of a buyer waiting for a deed and the seller waiting for funds, the deed could be instantly sent to the buyer and funds sent instantly to the seller through Ethereum.
The potential to solve real-world problems and achieve widespread adoption helped ETH prices skyrocket.
At the start of 2017, ETH traded for just $7.98. So for someone who held ETH from Jan. 1, 2017, to Jan. 1, 2018, that's a gain of 9,370.67% in 12 months.
At just $7.98, a minimal investment wouldn't have killed your portfolio if the prices plummeted to pennies.
But the profit potential was huge.
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And one of the coins we're about to show you is trading under $0.10 right now. If prices ever crossed just $1, a $500 investment could turn into a potential $5,555 windfall...
Plus, we know these coins have the potential to soar, because the crypto industry is only just beginning...
Why Cryptocurrencies Still Have Life-Changing Potential
If someone tells you cryptocurrencies aren't valuable, just ask them what the 2014 Jamaican bobsled team has to say...
The team qualified for the 2014 Winter Olympics, but brakeman Marvin Dixon revealed there wasn't enough money for the Jamaicans to travel to Russia.
When members of the Dogecoin (DOGE) heard about this, they wanted to help out.
Dogecoin was created in 2013 by Jackson Palmer, and it's marketed as a friendly and fun Internet currency on its website.
The DOGE community rallied together and raised $36,000 worth of DOGE to help send the Jamaican team to the 2014 Winter Olympics, according to The Los Angeles Times.
You see, if just one person sends a cryptocurrency to another person as a form of payment, it has value.
Right now, all cryptocurrency coins have a total $548 billion market cap.
And the worldwide blockchain technology market was worth $339.5 million in 2017, according to Statista.com. By 2021, that's expected to skyrocket 592%, to $2.3 billion.
That shows us that we're only in the beginning stages of the cryptocurrency revolution.
When you combine a network that solves a problem and offers its own coin to settle transactions, demand for a cryptocurrency can skyrocket...
By using our cryptocurrency qualifiers, you're able to drill down from the 1,400 cryptos to the most potentially profitable ones to create a list of five...
The 5 Cryptocurrencies on Our Watch List for 2018
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In 2018, the five cryptocurrencies to watch are Ethos, Kyber Network, WAX, Request Network, and FunFair.
| Name | Coin or Token | Prices as of 1/22/18 | Market Cap as of 1/22/18 |
| Ethos | ETHOS | $5.84 | $481 million |
| KyberNetwork | KNC | $3.46 | $492 million |
| WAX | WAX | $0.91 | $508 million |
| Request Network | REQ | $0.47 | $320 million |
| FunFair | FUN | $0.09 | $470 million |
Just as a reminder, these were the criteria to make the list:
- The underlying blockchain technology has to solve a problem.
- The coin or token has to have the potential for widespread adoption.
- The coin must be $10 or less, so investors can get started with an affordable initial investment and limit their risk.
Editor's Note: Need to know where to buy cryptocurrencies? Here's a list of cryptocurrency exchanges reviewed by tech expert Michael Robinson.
That's why Ethos was the first cryptocurrency to make our list...
Cryptocurrency to Watch in 2018, No. 5: Ethos
Ethos is a secure, multi-token wallet that lets anyone "store and transfer value of any form - anywhere, anytime, anyplace, instantly - for free," according to its website.
The crypto coin connected to the project is ETHOS.
It lets crypto investors store hundreds of different coins, as well as deposit, withdraw, send, or exchange any crypto asset instantly.
One problem with cryptocurrencies now is that there isn't any easy and safe option for coins to be stored and easily transferred from one person to another.
If a hacker finds out all of your login information for Coinbase, for instance, they can withdraw all of your coins.
Investors can print off paper wallets (a piece of paper that has an address to receive coins and a private key that controls who can send the crypto coin).
But if the piece of paper gets misplaced, and there isn't a backup of the private key, the coins could be lost forever.
Cold storage (a hardware device) is the safest way to store virtual currencies, but it doesn't make it easy for everyday spending.
However, Ethos says it has a mobile-first approach, which will allow crypto holders to manage and monitor their coins on the move.
If Ethos can make a safe wallet that is also easy to use, it could become the go-to wallet for the crypto community.
On top of all that, Ethos is building a social network feature for investors that could make the ETHOS coin climb in value.
Through Ethos Social, users earn rewards or points by sharing crypto investing advice. The site doesn't say this, but if someone becomes an investing expert on Ethos, followers could donate to the expert in ETHOS.
Must Read: Should I Sell My Bitcoin Now That It's Above $10,000?
That could be a real possibility, as Ethos will make it possible to send the ETHOS coin to any phone number, e-mail, or Ethos ID for free.
When CoinMarketCap.com first started tracking ETHOS on July 18, 2017, it was trading for $0.06. On Jan. 22, ETHOS closed at $5.84 per coin.
That's a 9,633% climb in six months, for an average gain of 1,605% per month.
If those gains continue throughout the rest of 2017, that will be a total gain of 19,266% for 2018.
And if ETHOS prices climb nearly 20,000% over the next year, the ETHOS token will be worth $1,150 by next January.
It's going to be difficult to keep up those gains each month, but as we've seen with Ripple prices climbing over 38,000% from 2017 to 2018, it's possible.
Cryptocurrency to Watch, No. 4: KyberNetwork
The KyberNetwork allows cryptocurrency users to convert and exchange their coins securely and instantly. Every operation happens through smart contracts.
When the conditions of the contract are met and agreed upon by all parties, a smart contract will automatically execute.
Now, it's true there are already exchanges for investors to convert their digital currencies into other coins, like ShapeShift.
But the KyberNetwork says it's developing features that will allow for the trading of advanced financial instruments, like options, by Q4 2018.
Right now, investors can only buy options contracts on Bitcoin through the CBOE or CME.
However, it appears the KyberNetwork could allow its users to buy options contracts for any of their cryptocurrencies. That gives speculators even more coins to make money from, and it means more retail investors can access cryptocurrency options trading.
It also brings more awareness to cryptocurrencies outside of Bitcoin.
And as more investors find out about the KyberNetwork, its KyberNetwork Crystal token (KNC) could become more valuable...
KNC tokens are required as reserves to participate in the network. In every trade, a small, still-to-be-determined number of KNC tokens will be paid to the KyberNetwork platform.
The payment is the fee for using the network for trading activity, according to its white paper.
When CoinMarketCap.com first started tracking KNC on Sept. 22, 2017, the price per token was $1.85.
Since Jan. 22, it's climbed to $3.46 per token, an 87.02% jump in four months.
That's an average gain of 21.75% per month.
If the returns can keep up that pace, that could be a return of 261.06% by next January, placing KNC at roughly $12.52 per coin next year.
Cryptocurrency to Watch, No. 3: WAX
WAX is a decentralized virtual marketplace for secure payment processing.
According to its website, "WAX is designed to serve the 400+ million online players who already collect, buy and sell in-game items."
For example, if someone wanted to sell a special sword that was acquired in a video game, they could do that through the WAX platform without having to leave the site they're on.
Gamers are listing digital goods for "World of Warcraft" on the website Playerauctions.com for as much as $790, so there's a real demand for these products.
But if gamers make sales across international borders, their fees could make the transaction too expensive. This is solving a real problem in the 400 million strong video-gaming community...
According to an October 2017 Medium post by WAX, someone in Brazil will have a difficult time paying someone in Germany for a digital good because of cross-border payment-processing fees.
A 2016 report from McKinsey & Co. showed international transaction fees can be as high as $100.
But by using the WAX token, that problem is solved.
It doesn't say how much of a fee it will charge other than it's small, but instant transactions are appealing instead of waiting days or weeks for payments to settle.
And CEO William Quigley has his sights set higher than just digital goods in video games...
WAX could also eventually be used to list and sell websites, to pay appraisers, affiliates, and escrow agents.
The company also believes the platform could be eventually used for physical items.
"Imagine if someone could send an actual physical item (i.e. a rare coin) to a vault, receive a blockchain-based token in its place, and then trade that digital marker instead of the physical item." - Wax.io
It's true WAX has plunged in value since CoinMarketCap.com first started tracking the token.
On Dec. 21, 2017, WAX was trading for $4.60. By Jan. 22, it closed at $0.91.
That's a dip of 80.27%.
But because there are 1.8 billion gamers in the world, according to a 2015 Entertainment Software Association study, there's a large community out there that may want to use WAX.
As it receives more use, the demand for the token can climb, sending the price higher.
Cryptocurrency to Watch, No. 2: Request Network
The Request Network allows anyone, anywhere, to request a payment.
Every global currency is supported on the network, and it allows a request to be detected and securely paid without the need to involve a third party.
For example, you don't have to have to share your bank information to complete a transaction, like you do with PayPal Holdings Inc. (Nasdaq: PYPL).
It's also being designed to work with the Internet of Things (IoT).
This may sound far-fetched, but eventually, cars connected through IoT could accept REQ payments from ride seekers.
On July 20, 2016, Tesla Inc. (Nasdaq: TSLA) CEO Elon Musk revealed his master plan for Tesla's future.
Elon Musk Says All New Teslas Will Be Equipped for Self-Driving
He didn't provide a timetable, but he eventually wants to turn Tesla vehicles into self-driving taxis.
Musk says that most cars are only in use 5% to 10% of the day, and turning a vehicle into a taxi could offset car loans or lease costs for its owners.
If Musk implements a network like Request into Tesla, a car could request a payment from the ride seeker before it unlocks itself, without the owner even having to be there.
And just like with the KyberNetwork, the REQ token has to be used to participate on the platform.
To be clear, neither Musk nor representatives of the Request Network have ever mentioned any plans of working together.
But this example does show how blockchain technology and cryptocurrency payments could become a part of our everyday lives.
When CoinMarketCap.com first tracked REQ, the price was $0.05 on Oct. 20, 2017. Just four months later, the price of REQ climbed to $0.47 on Jan. 22.
That's a gain of 840%.
Over the last four months, that's a gain of 210% per month.
If those types of gains continue, that's a potential profit of 2,520% over the next 12 months.
That means the REQ price could climb to $12.35 by January 2018.
Cryptocurrency to Watch, No. 1: FunFair
FunFair utilizes blockchain technology to improve the online casino industry.
"Starting an online casino is complicated and expensive, and that's before you try to attract players and earn their trust. Using blockchain technology to simplify setup and reduce costs, FunFair enables anyone, anywhere to run their own casino," according to the FunFair website.
And while the online casino market is still new, it's growing quickly....
In 2013, the online industry was worth $2.2 billion. By 2015, it skyrocketed to $3.4 billion, a 54.54% increase in just two years.
But that's still not even 1% of the $450 billion U.S. casino industry's value in 2016.
There's a lot of room for growth.
If companies and individuals start creating online casinos and accept FUN as payment, the use of FUN tokens could increase.
As more tokens are used, the demand increases, which can help prices climb.
The FUN token trades for $0.08, and it's climbed 370.58% since CoinMarketCap.com started covering it on June 27, 2017.
That's an average gain of 52.94% per month. If FunFair prices keep climbing over the next 12 months, that's a total gain 635.28%.
If prices keep climbing like that average, the FUN token could trade for $0.59 by next January.
The Bottom Line: The cryptocurrencies to watch in 2018 have easily understood uses, solve a problem, and can be adopted as payment solutions. That's why Ethos, KyberNetwork, WAX, Request Network, and FunFair are all on our list of cryptocurrencies to watch in 2018.
Up next, we also found a brand-new way to profit every week...
Up Next: While You Sleep, He Executes Night Trades...
Last Wednesday, the Night Trader infiltrated the markets at 9:30 p.m. The next time he checked his account on Friday, his entire portfolio went up 83%.
He then spent the weekend at a five-star hotel. And on Monday, saw an additional 102% total gains in his account.
That’s 185% total gains in two trading days (all without using a single option).
Once you see how the Night Trader makes money, your life will never be the same again. Go here now.