What Are The Best Cryptocurrencies To Invest In? [2024]

Recently decentralized digital money, or tokens, became popular in the financial markets, presenting investors with brand new ways of investing and earning money. With the number of cryptocurrencies available, I mean tens of thousands, it is hard to identify the best ones to invest in. These cryptos are some of the best cryptocurrencies investors can consider including their aspects, potential, and current performance. So, before the final paragraph of this article, the reader will have sufficient knowledge about the promising cryptocurrencies and the ways to make right decisions in this fluctuating industry.

Understanding Cryptocurrency Investments

However, before going straight to the various cryptocurrencies that exist, it is important to establish the basics about investing in cryptocurrencies. Cryptocurrencies refer to digital or virtual money used as means of payment with the aim of using cryptography technique for security. They use peer-to-peer platforms rooted in blockchain solutions, which guarantee the openness, security, and non-tamperability of the processes. The process of trading in cryptocurrencies entails taking a long-term view of the market wherein people purchase and wait for the value of their cryptocurrencies to rise. However, it should be pointed out that the market of cryptocurrencies is rather unstable, and considerable drops in prices are possible.

A few principles should be applied when selecting cryptocurrencies to invest in – market cap, technology being used, application of the coin/tokens, the development team behind a cryptocurrency, as well as its community. Market capitalization on the other hand is the total worth of a cryptocurrency in circulation given by the current rate by the total quantity in circulation. An organization with a high market capitalization has a more mature and financially stable cryptocurrency. Several factors set the cryptocurrency’s growth and adoption rate depending on the base technology and its practical application. A good development team and a community that engage in the use of the token are also important factors in the success rate of the token and its sustainability.

Bitcoin (BTC)

Bitcoin is widely regarded as the first and the most popular Cryptocurrency that has been invested in. Born from the mind of an unknown person or a group of persons using the pseudonym, Satoshi Nakamoto in 2008, Bitcoin was the first to present digital currency that was decentralized. It functioned on the multipeer-to-peer system so that people could transfer money directly without going through a middle man.

The market capitalization remains dominant for Bitcoin as it is a well-known and recognized cryptocurrency for value storage.Some investors hold the view that Bitcoin is similar to gold because it is a good store of value, particularly over the long-term. The existence of only 21 million of them also helps to increase its rarity and the expectation of its appreciation in the future.

Thus, Bitcoin is somewhat secure and liquid among the various other cryptocurrenies that exist in the market. Nevertheless, it is necessary to look at specific tendencies that may effect its value such as changes in legislation or appearance of new technologies. Nevertheless, such risks are intrinsic to practically any investment, while Bitcoin is the world’s first digital currency and is globally recognized, so it is suitable both for beginners and experienced traders.

Ethereum (ETH)

There is another much-promising cryptocurrency known as Ethereum to invest in. Subsequent to its creation in 2015, a team led by Vitalik Buterin promised the world the idea of smart contracts and decentralized applications (dApps). While Bitcoin is mostly a digital currency, Ethereum is a blockchain for creating and implementing decentralized applications.

Ethereum is another well-known blockchain that was designed to support such applications and the principal currency of Ethereum is called Ether or ETH. Ethereum being a platform for smart contracts practically initiated the development of multiple decentralized finance (DeFi) platforms, non-fungible tokens (NFTs), and other crucial applications.

Currently, this cryptocurrency occupies the second place in terms of market capitalization, which indicates a high demand and relevance in the sphere of blockchain. Its constant evolution and the upgrades that are to be established soon for Ethereum 2. 0, which they expect to upscale in efficiency and security, and power usage, thus boosting the prospects for more expansion.

Ethereum, as a digital currency has its applications and innovations within the block-chain space hence if one invests in Ethereum it will be like the investment encompassed a large range of these apps and innovations. However, it is necessary to be aware of the network’s developmental updates and other potential competitors in the smart contract platforms.

Binance Coin (BNB)

The Binance exchange coin thus entered the market in 2017 and since then has received a lot of attention and appreciation in regards to value. Initially, it was designed as the native asset for trading inside the Binance exchange and paying for trading fees while in the later use-cases it assumed the shape of a movement cryptocurrency. Another aspect of facilitating Binance coin is the Binance Smart Chain (BSC), the blockchain solution that supports smart contract functionality and is compatible with EVM. BSC is now preferred by developers because of the comparatively lower transaction fees and greater efficiency than Ethereum’s block chain.

Due to tight Ethereum gas fees, traders use Binance Coin extensively to avoid high costs when investing in cryptocurrencies, and thus, it remains among the top ranked digital assets based on the market capitalization. Besides, trading fee, Binance Coin has other uses like in participating in token sales at the Binance Launchpad, money for travels, among others.

This means that, by investing in Binance Coin, one gets to participate in the operations of one of the largest and most popular, or even influential, crypto exchanges and its constantly growing ecosystem. Nonetheless, one has to take into account the possible threats of regulation and presence of competition in the form of other blockchain platforms.

Cardano (ADA)

Cardano is a blockchain which stands out for its paradigm of a scientific approach as well as scientific publication of the results of Cardano’s development. Cardano is one of the newest cryptocurrencies that appeared after the Ethereum platform and was created based on it by Charles Hoskinson, another founder of Ethereum.

The native currency that is used by Cardano is the ADA which enables the execution of various transactions and applications. A platform development roadmap is divided into several stages where each stage deals with enhancement in different aspects like, scalability, interconnectivity, and management.

By the market capitalization Cardano takes the places among the most demanded coins, which can be explained by the development of a loyal community and increasing popularity. As such, the primary focus on security, scalability and sustainability present the platform as a long-term investment avenue.

Buying ADA provides an opportunity to invest in the blockchain platform with a well-planned out development plan and adherence to the academic principles. Still, it is crucial to be up-to-date regarding the platform’s development phase and other rivals related to smart contracts and blockchains.

Solana (SOL)

Solana is a high throughput blockchain for fast, reliable, and scalable dApps and digital assets. Solana which began in 2020 is another blockchain platform that has risen to solve some of the limitations seen in other blockhain networks in terms of transaction capacity and fees. SOL is Solana’s native token which is used for transactions’ fees and also to stake in the proof-of-stake consensus algorithm used in the platform. The platform’s consensus model; Proof of History (PoH) in conjunction with other features means that the platform can support thousands of transactions per second.

One of the most outstanding statistics is the growth of Solana’s market capitalization, which is considered an indicator of its increasing popularity and recognition as one of the blockchain leaders. Its high-speed transactions with extremely low fees make it perfect for many projects, especially in the DeFi/NFT spheres. Staking Solana coins gives one an opportunity to invest in a relatively new and promising blockchain network with a higher level of Expansion and usage. However, it is expected to look at the various technological threats and the competition that comes with other related high-performance blockchain ventures.

Polkadot (DOT)

Polkadot is a third-generation blockchain with multiple connected blockchains aiming at having protocols that support message exchange between various blockchains. Polkadot is an ongoing project initiated by Dr. Gavin Wood, one of the Ethereum’s co-founders, which has the main goal to establish a fully decentralized web by connecting blockchain based systems and allowing them to exchange information safely.

Polkadot has developed its own tokens known as DOT used in the governance of the network, staking and bonding. The feature particularly lies in the network structure that is based on the central relay chain and a number of parachains; the feature allows for parallel transaction processing, thus enhancing the system’s scalability and efficiency. Due to its rather high market capitalization, Polkadot is considered among the leading cryptocurrencies with its utmost focus on the integration of blockchain systems and the bolstering interest.

One of the key advantages of the platform is based on the use of a simple and efficient way of communication between different blockchains to attract the attention of developers and investors. Holding Polkadot as an investment provides the chance to invest in the functioning of blockchain with possible further deep integration and development of multi-chain connectivity. Yet, understanding the progress of the platform’s development and possible rivals in multi-chain and interoperability domain is crucial.

Ripple (XRP)

Ripple is an electronic money transfer system that seeks to promote speedy and cheap international money transfer. Still, Ripple is different from the other cryptocurrencies as it is not built on blockchain principle but depends on consensus ledger and a list of responsible nodes.

XRP is the digital asset that Ripple employs when providing solutions for international transfers. For example, the Ripple protocol targets the replacement of payment systems such as the Society for Worldwide Interbank Financial Telecommunication, SWIFT since the Ripple transactions can process within a few seconds unlike SWIFT that can take several days.

Ripple is already among the top 25 coins with its market capitalization that proves this cryptocurrency is becoming increasingly popular and actively implemented in the field of finance. Some of the couples are listed down: The credibility and the growth rate of the platform increases by partnering with the big financial institutions and payment providers.

This means that buying Ripple positions one to profits from a digital payment protocol with the potential of revolutionizing global payments. However it is equally imperative to look at some of the risks such as regulatory risks to the new forms of digital payment methods as well as the competition that it is likely to come across from other similar inventions.

Chainlink (LINK)

The Chainlink definitions describe it as an oracle that enables the execution of smart contracts through advanced real-world data. Chainlink is developed since 2017 to address the issue of the “oracle problem” and offers secure sources of relevant data for smart contracts on numerous blockchains.

link is used to pay for data, and it pays nodes to provide data to the network and for other services. Thus, the integrity and security of the platform make it quite useful in most decentralized applications or dApps.

When it comes to Chainlink, its market capitalization is very high, and this puts the cryptocurrency in the list of the most popular ones nowadays with a focus on oracle solutions. This includes mergers with other prominent blockchain businesses as well as corporations which adds to its credibility and possibility of expansion.

Link token is a popular token now in a decentralized oracle providing valuable input that has a huge potential to drive smart contracts. However, there are some points that are crucial now: informs about the development process of the platform; to study possible competitors in the mentioned category called oracles.

Stellar (XLM)

Stellar is another blockchain system that was specifically developed to provide better and faster international payments and assets exchange. Stellar was launched by Jed McCaleb, who is also one of the key people behind Ripple, and the system’s main goal is to help everyone and everything get access to fair financial systems. Lumens (XLM) that is Stellar’s proprietary digital currency is applied for carrying out transactions as well as to keeping the network secure. SCP is the consensus protocol in the platform enabling fast and secure way of transaction validation other than through mining process.

Today the cryptocurrency occupies one of the leading positions in the ranking of digital currencies in terms of market capitalization, which speaks about its active use in various spheres and recognition as a reliable payment tool. These partnerships have made the platform to be associated with recognized financial institutions and organizations hence increasing its growth capabilities.

Buying Stellar in 2017 would give the investor direct access to a block chain plat form which has the potential of revolutionizing the international payments space. There are possible regulations that may affect the business in the future as well as competition from other digital payment services.

VeChain (VET)

VeChain is a blockchain solution which focuses on the enhancement of supply chain and various corporate activities. Originally established in 2015, VeChain seeks to enhance the supply chain transparency, traceability, and productivity across the various fields including logistics, healthcare marketplace, and gourmet food and beverages.

The coin of this network is VET, which is used for conducting transactions and executing applications on the VeChain blockchain. The usage of two tokens that are VETs and VeThor (VTHO) helps in the effective management of offerings and fees.

VeChain holds a significantly high market capitalization making it among the most popular cryptocurrency supply chain solutions. Therefore, the company’s affiliations with most critical enterprises and organizations have the ability to make it more credible and grow bigger.

Getting a stake in VeChain has potential to be hold one of the most promising blockchain platforms for supply chain solution and more in the future. However, daily usage of it requires to track updates and progress of the platform, as well as its potential competitors in supply chain sphere.

Tezos (XTZ)

Self-amending Tezos blockchain is a new platform that enables decentralized applications. In 2018, Tezos was also introduced, its main goal being a novel architecture for smart contracts and decentralized applications that is as flexible and scalable as possible.

XTZ refers to the built in token of the Tezos blockchain that is used for voting privileges, staking and paying of transaction fees in the network. Its on-chain governance feature enables the stakeholders to present and decide on the modifications of the processes of the platform’s activities.

Cryptocurrency’s market capitalization places it among the most popular digital assets and identifies it as a premier smart contract platform. Because of self-amendment and the governance of its platform, it becomes the best option for developers or investors.

Investing in this venture reveals a blockchain platform with great potential in processes of scaling and flexibility. However, it is necessary to monitor the progress of the development of platform and possible competitors in the sphere of smart contracts.

Conclusion

The key factors that have been used to select the best cryptocurrencies that can be invested in include market capitalization, the ideas behind those technologies, use, team behind those technologies and the community behind it. That is why, investing in such TOP cryptocurrencies as Bitcoin, Ethereum, Binance Coin, Cardano, Solana, Polkadot, Ripple, Chainlink, Stellar, VeChain, and Tezos can be considered safe. These are interesting cryptocurrencies that bring different opportunities and possibilities of growth to the table.

However, it is required to pay attention to changes in the market situation in terms of new trends, as well as changes in legislation and the introduction of new technologies that may affect the value of these cryptocurrencies. Being able to diversify your investment and do your homework in investing is a way to manage risks while reaping big in the interesting world of cryptocurrencies. Knowing these characteristics and possibilities of various cryptocurrencies you will be free to make correct decisions and to travel willingly in the world of cryptocurrencies investments.