Bitcoin has reached a new all-time high. Here are two affordable alternative cryptocurrencies.

On December 17, Bitcoin (Bitcoin -2.02%) It reached a new all-time high above $108,000. While Bitcoin has been somewhat volatile, it is still up over 50% since the presidential election. This number has increased by a staggering 148% to date.

However, Bitcoin may be overheating. After all, the value of Bitcoin has now risen more than 500% over the past two years, and the market may be overestimating some of the pro-Bitcoin promises made by the incoming Trump administration. With that in mind, here are two affordable alternatives that could turn out to be undervalued gemstones.

Cardano

like bitcoin, Cardano (Ada -1.58%) There was a strong rally after the elections. However, it is still only up 74% for the year. This is well behind Bitcoin’s rapid pace, which leads me to believe that there is still upside potential ahead Cardano.

Furthermore, Cardano – unlike Bitcoin – is trading well below its all-time highs. Cardano is currently trading at $1, still 66% below its all-time high of $3.10. This is a very steep discount.

Another major factor in Cardano’s favor is the potential launch of spot ETFs sometime in 2025. According to some investors, this could be a catalyst for a 3x price rise, with Cardano quickly regaining its all-time high starting in 2021. Even Others have suggested that Cardano could reach a price of $5.

However, Cardano can be very cheap for a reason. An ETF for Cardano is a long shot at best. Cardano appears to be losing ground in the Layer 1 blockchain race. there Ethereum (Crypto: ETH) At the front of the pack, followed by a group of other competitors. Right now, Cardano may be the third or fourth best tier one blockchain.

Despite this, my thinking here is that Cardano – at just $1 – could be the “poor man’s Ethereum”. This is because Cardano is already outperforming Ethereum this year and appears to have greater upside potential in 2025 once the spot ETF scenario is taken into account.

Litecoin

Very similar to Cardano, Litecoin (ltc 1.79%) It is trading well below its all-time high. At the current price, $116. Litecoin It is trading 72% below its all-time high of $413. That could be a red flag, or it could be an invitation to pick up an overlooked and undervalued cryptocurrency at a great price.

Until recently, I would have said that such a large discount was a red flag. For most of the past two years, Litecoin seems to have fallen out of favor with investors. The Litecoin halving event in 2023 turned out to be nothing significant, and Litecoin has always underperformed other cryptocurrencies.

But here’s the thing: In mid-December, Litecoin suddenly became the talk of the cryptocurrency market. According to ETF analysts at Bloomberg, Litecoin – not Solana or XRP – is now at the front of the pack for immediate SEC approval. If ETFs are scheduled to debut in early 2025, it will likely come from Litecoin. This could lead to a tsunami of new money flowing into Litecoin, causing its price to rise rapidly.

Moreover, Litecoin is much easier to understand than other cryptocurrencies. As its name suggests, it is a “lite” version of Bitcoin. If you understand Bitcoin, you understand Litecoin. This is because Litecoin was formed from a copy of the same source code used to create Bitcoin.

Litecoin is mined, just like Bitcoin. It has a halving every four years, just like Bitcoin. Since it is based on the same code as Bitcoin, it should behave similarly to Bitcoin. If Cardano is the “poor man’s Ethereum,” then Litecoin could be the “poor man’s Bitcoin.”

Best of all, Litecoin is pretty much set no To be a security, this appears to remove any potential regulatory risk. For risk-averse institutional investors, this is a major selling point.

What does it mean for a cryptocurrency to be “affordable”?

I’ve certainly taken a somewhat limited approach when it comes to defining an “affordable” cryptocurrency. My basic methodology was to simply look at the list of the top 25 cryptocurrencies as ranked by market cap and then identify coins that were trading well below their all-time highs.

This approach can help isolate a few potential investment opportunities, such as Cardano and Litecoin. However, it has also featured some cryptocurrencies that I would never have thought of investing in. For example, Shiba Inu (Crypto: SHIB) 70% below all-time highs But, as a general rule, I don’t put cryptocurrencies in my long-term portfolio.

Just remember this: There is a huge risk anytime you rummage through basement trash of any kind. You might find a real gem, yes. But you may also be buying something with major flaws for reasons that may not be immediately obvious. So, if you are considering investing in Cardano or Litecoin, remember to do your due diligence.