3 Top Altcoins to Buy in September

Looking for substantial capital appreciation in the cryptocurrency sector? Here are the top speculative picks.

Every major single currency today, such as  Bitcoin Ethereum , and  Binance Coin , all have one thing in common -- they were trading for pennies on the dollar during their inception. Now that they've become mainstream, their large market caps prevent their prices from going up too fast in a short time. But the same can't be said for altcoins, which are alternative cryptocurrencies launched after Bitcoin's success.

A large portion of the more than 11,000 altcoins are struggling to gain traction. But that can't be said for a few diamonds in the rough that offer high risk and high reward. So let's look at how these top altcoins can deepen investors' digital wallets. They've already realized four-digit percentage returns over the past few years.

Person sitting on steps working on laptop.

Image source: Getty Images.

1. Avalanche 

Like Ethereum,  Avalanche (CRYPTO:AVAX) is a smart contract, programmable money token. But it can settle transactions in less than a second, whereas those on the Ethereum network could take as long as four hours.

The advancement here has major implications. With the help of an oracle coin such as ChainLink , Avalanche can connect the execution of smart contracts with real-world API. This would allow parties to execute instantaneous transactions based on anything from future prices, stock market data, weather forecasts, breaking news, etc.

It shouldn't be surprising that crypto investors have already caught on to the innovation. The token has returned a staggering 2,440.38% since its inception during September 2020. What's more, the token is not inflationary, like Ethereum. I would assume capital inflows in the future will only drive the price of the token upwards. The token has a maximum supply of 720 million. In addition, the Avalanche network burns a portion of its fees with every transaction. Over 180,000 tokens have been burned since the network went live.

2. Pirate Chain  

Pirate Chain (CRYPTO:ARRR) is a privacy coin that originated from a server on the popular social-platform Discord. Since then, the coin has taken off with a return of 3,212.44% in a little over two years. The coin plays a pivotal role in solving Bitcoin's non-fungibility problem.

During Bitcoin's origin, many users flocked to the cryptocurrency to transact illegal activities. However, advanced blockchain research firms like Chainalysis can now identify them by matching criminals' wallet addresses with records on the public ledger. Taking it one step further, companies can then coordinate with law enforcement to flag these Bitcoins as "tainted." New investors on the receiving end of laundered Bitcoins could then receive regulatory scrutiny, despite being oblivious to their coin's history. 

Pirate Chain utilizes zero-knowledge cryptography (zk-SNARK) to shield outside observers, while simultaneously having a blockchain public ledger. As a result, parties to a transaction can send and receive money at will, but no one else can see the amount transacted, their wallet addresses, or wallet balances.

In addition, Pirate Chain secures itself from cyberattacks by using a delayed proof-of-work (PoW) algorithm. ARRR transactions are not only notarized on the native Pirate Chain network but also on the Komodo and Bitcoin blockchains. (Miners, too, can't see the nature of transactions.)

Therefore, the only way a hacker can alter its ledger is if they launch a simultaneous 51% attack against the ARRR, Komodo, and Bitcoin blockchains, which would require an astronomical amount of hash rate. Overall, due to its high-privacy feature, virtual immunity against cyberattacks, and limited supply (185 million out of a total of 200 million tokens have been minted), Pirate Chain is an intriguing cryptocurrency investors should consider. 

3. iExec RLC 

iExec RLC  (CRYPTO:RLC) is an innovative token that provides on-demand, decentralized cloud computing services. Users can connect their machines to the iExec network to provide computing capacity and receive rewards in RLC tokens for doing so. In addition, both application and data providers can monetize their services via the network. 

It's more than an academic project. Right now, the company behind iExec RLC is collaborating with Alphabet's Google and IBM to enhance data security in cloud computing. Similar to the other tokens, iExec RLC isn't inflationary and has a maximum supply of 87 million. The token has returned 1,048.9% since its inception in 2017.

Should you invest $1,000 in iExec right now?

Before you consider iExec, you'll want to hear this.

Our award-winning analyst team just revealed what they believe are the 10 best stocks for investors to buy right now... and iExec wasn't one of them.

The online investing service they've run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.

See the 10 stocks

*Stock Advisor returns as of August 9, 2021

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Zhiyuan Sun has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.

Frequently asked investing questions at The Motley Fool

What stocks should I buy now?

Our goal in Motley Fool Stock Advisor is to give you all the information you need to pick the best stocks for your portfolio. Only you know how much time you have to commit to your stock research, so Stock Advisor is specifically designed to allow you to spend as little or as much time as you would like researching stocks.

  • Do you love poring over the details of dozens of stocks before you buy? You will love that Stock Advisor has detailed write-ups on well over 200 companies with a Buy rating from our analyst team.
  • Don’t have much time to spend researching stocks? No problem. Every month we produce a curated list of 10 Best Buys Now stocks - so you’ll always be able to quickly find 10 of our favorite stocks for new money.

How long should I hold stocks?

Here at The Motley Fool we believe in buying and holding stocks for the long term. We recommend only buying stocks you are willing to hold for at least 3-5 years. And we absolutely love it when we are able to hold stocks for even longer than that. Here’s why:

  • Members who bought Tesla when Motley Fool Stock Advisor recommended it in 2012 and held have made over 100x their money.
  • Members who bought Netflix when Motley Fool Stock Advisor recommended it in 2004 and held have made over 200x their money.
  • Members who bought Amazon when Motley Fool Stock Advisor recommended it in 2002 and held have made over 200x their money.

Now, of course, not every pick has done as well as these. But one pattern we have seen over and over again is that our biggest winners are the stocks that we have held onto for the longest.

How do I know when to buy or sell a stock?

There are right and wrong times to sell stocks. It's generally a bad idea to sell a stock simply because the price went up or down. On the other hand, there are some other situations that can be perfectly valid reasons to hit the sell button:

  • The reasons you bought the stock no longer apply.
  • The company is being acquired.
  • You need the money, or you will soon.
  • You need to rebalance your portfolio (because it's out of balance, or your investment goals change).
  • You see a better opportunity to invest elsewhere.

Still unsure when to buy and sell? Motley Fool Stock Advisor provides members with 2 new stock picks to buy every month, and sends you email updates when the team of analysts believe you should buy or sell a stock you're following, or a stock we've recommended. Learn more about Motley Fool Stock Advisor.