3 Cryptos to Sell Before the Bull Market Begins

This year has also been particularly good for crypto. Bitcoin reached a new all-time high and the historic Bitcoin halving was an overwhelming success.

Cryptocurrencies exploded into the mainstream a few years ago and, despite their volatility, have established themselves as valid investment options in the market. The SEC’s approval of a Bitcoin spot ETF earlier this year is a testament to this. As more use cases for crypto and blockchain technology emerge, such as real-world assets and tokenization, the potential and excitement around crypto is at an all-time high.

This year has also been particularly kind to crypto. Bitcoin reached a new all-time high and the historic Bitcoin halving was an overwhelming success. In the past, there has been a bull market after every Bitcoin halving, and there is a general expectation in the crypto industry that a new bull market could begin very soon. Should this happen, investors can make huge profits by investing in the right cryptos.

If you are a crypto investor, now could be the best time to invest in high potential cryptos that are sure to generate huge returns when the bull market begins. The best place to start is by clearing your portfolio of underperforming cryptos that you want to sell before you suffer further losses.

Here are three cryptocurrencies to sell before the bull market begins:

Avalanche (AVAX)

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Avalanche (AVAX-USD) is a popular layer-one blockchain that was developed as an alternative to Ethereum. It belongs to a group of blockchains that are known as “Ethereum Killers” due to their potential to replace the leading smart contract platform and eliminate some of its pitfalls.

Although Avalanche successfully addresses the blockchain trilemma that prevents decentralization of blockchains to a sufficient extent and leads to high gas fees, as in the case of Ethereum, it has failed to replace the latter as the industry’s leading smart contract platform. However, it did attract some Ethereum-based projects such as SushiSwap and TrueUSD.

With a market capitalization of over $9 billion, Avalanche is one of the most well-known blockchains in the crypto industry. However, this year hasn’t been particularly good for the Layer 1 network. It fell over 30% last month and is in a downward spiral in the market. With the bull market about to begin, now could be a good time to sell the coin.

Axie Infinity (AXS)

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Axie Infinity (AXS-USD) is a blockchain-based gaming platform that is modeled after popular retro games such as Pokemon and Tamagotchi. The game involves collecting, raising, breeding, fighting, and trading creatures known as Axies with other players. These Axies are non-fungible tokens (NFTs) and can take over 500 different forms. They are divided into the categories “common”, “rare”, “extremely rare” and “legendary”.

Axie Infinity was considered to be the pinnacle of blockchain gaming and the Metaverse experience when it launched. However, this promise has not yet been fully realized, partly due to the decline in interest in blockchain gaming following the events of the Crypto winter 2022. This year, Axie Infinity has become one of the worst-performing companies in the crypto industry, and analysts are now reporting that it may decrease by 96% before the end of the year.

This is the most bearish trend Axie Infinity has seen recently. The emergence of new use cases for crypto and blockchain technology, such as DeFi, AI and the tokenization of real-world assets, is certainly not helping. It could be a while before the gaming and metaverse narrative regains traction in the crypto industry, meaning now is a good time to sell the AXS token if you own it.

Filecoin (FIL)

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Filecoin (FIL-USD) is a decentralized storage system for the world’s most important data. The key difference between Filecoin and other storage services is that it is peer-to-peer and managed by the individuals on the platform rather than a central authority. In Filecoin, users pay providers (other users) for data storage and distribution services using the $FIL token.

Despite its unique use case, Filecoin has performed poorly in the market this year, declining by less than 10% more than 21% last month. In addition, the trading volume and circulating supply are down 23% and 0.09% respectively.

With the possibility of another bull run on the horizon, now could be the perfect time to ditch Filecoin and instead turn to more promising altcoins if you own them.

At the time of publication, Joel Lim did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.

Joel Lim is a contributor at InvestorPlace.com and a financial content contractor who