The cryptocurrency market is still in its infancy, with many investors unsure of which coins to invest in. With so much change happening every day, it can be difficult to keep up with the latest news and trends. That’s why we’ve put together this list of 12 cryptocurrencies that are expected to outperform the market in 2024.
The best penny cryptocurrency to invest in 2024 is a list of 12 cryptocurrencies that are expected to be the best investments in the coming year.
Another method to diversify your portfolio is to invest in cryptocurrency. However, determining which cryptocurrency is the best to invest in may be difficult.
Fortunately, we’re here to assist you. We’ll go through the top cryptocurrencies to invest in based on market size, technology, liquidity, and track record in this post.
We’ll go through what makes each cryptocurrency distinct, as well as the benefits and dangers associated with each coin/token. We’ve even put up a guide to help you figure out what to look for when analyzing cryptocurrencies so you can make the best investing choice possible.
Which Cryptocurrency Should You Invest In?
Although there are hundreds of cryptocurrencies available, not all of them are worthwhile investments. Here are some choices to consider if you’re searching for the finest cryptocurrency to invest in. Also, if you want to learn more about cryptocurrencies, check out our article on how to invest in cryptocurrencies.
Bitcoin is number one (BTC)
Bitcoin, widely regarded as the first cryptocurrency, debuted in 2009 after being detailed in a whitepaper published under the pseudonym Satoshi Nakamoto in 2008.
Bitcoin’s uniqueness stems from the fact that it is a decentralized digital money that runs on the blockchain. There is no need for a central authority to handle payments between individuals or institutions since it is a completely peer-to-peer system.
Bitcoin’s main advantage is that it was the first cryptocurrency. Bitcoin is the market leader and is very liquid. The Proof-of-Work (PoW) consensus mechanism used by Bitcoin is sluggish and expensive. The “Lightning Network,” on the other hand, is a second layer added to Bitcoin’s network to reduce transaction processing times and costs.
Because Bitcoin’s supply is restricted to 21 million coins, many people believe it will appreciate in value over time. Coinbase, Gemini, and Kraken are all places where you may buy bitcoin.
Advantages:
- The very first cryptocurrency
- Decentralized to the max
- Total stock is limited.
- Extremely liquid
Risks:
- Extremely volatile
- Validation of transactions is time-consuming and costly.
Ethereum is number two (ETH)
Ethereum is a 2015-launched decentralized open-source blockchain technology. Ethereum is the name of a cryptocurrency network, and Ether (ETH) is its native coin, although the two words are often used interchangeably.
Ethereum is valued because it was the first cryptocurrency to successfully utilize smart contracts. Smart contracts enable two parties to carry out transactions and agreements without the requirement for a third-party authority. Ether also utilizes PoW, but with the Ethereum 2.0 upgrade, it will switch to Proof-of-Stake (PoS).
However, since Ethereum’s supply is not set, the number of coins in circulation may rise, lowering its value. The cost of Ethereum transactions has also increased as the token’s usage has grown. On Coinbase, Gemini, and Kraken, you may buy Ethereum.
Advantages:
- Smart contracts are used.
- Transactions are completed quickly.
- For the Ethereum network, there is a native token.
- Decentralized in every way
Risks:
- Increasing the cost of transactions
- The total supply is not set in stone.
3. Use a tether (USDT)
USDT is a stablecoin that is pegged to the United States dollar. Tether, a Hong Kong-based startup, debuted USDT in 2014 on the Bitcoin blockchain; however, it currently operates on other networks such as Ethereum, EOS, and Tron as well.
USDT should trade at a comparable rate to the US dollar. This is due to the fact that the business behind the token matches the amount of USD in reserve with the total quantity of USDT in circulation. The token’s volatility is reduced by the steady price, making it suitable for financial transactions.
USDT, on the other hand, is neither supply-limited nor decentralized. Furthermore, although USDT is intended to be backed by the US dollar, investors must have faith in the company’s ability to maintain adequate cash on hand. Coinbase, Crypto.com, and Kraken all accept Tether.
Advantages:
- The US dollar serves as a guarantee.
- Price stability
- Transactions are simple.
Risks:
- There is no assurance that USD reserves will be available.
- Not a decentralized system
Binance Coin is number four (BNB)
Binance Coin is the native coin of Binance, one of the most popular cryptocurrency exchanges in the world. Binance introduced the currency in 2017 as a utility token that supports the company’s ever-expanding network of decentralized networks.
In recent months, the price of Binance Coin has risen dramatically. It has a maximum supply of about 170.5 million coins and uses a fast PoS consensus mechanism. Additionally, those who trade on Binance’s exchange may save money by paying using Binance Coin.
Binance Coin, on the other hand, is not readily accessible. It’s available on Binance, but there aren’t many other ways to get it. Furthermore, it is unknown what value the currency may have outside of the Binance environment. Binance Coin is a cryptocurrency that can be purchased on Binance and Crypto.com.
Advantages:
- Price increases are on the rise.
- Total stock is limited.
- Transactions are completed quickly.
- It’s possible to utilize it to pay for Binance trading fees.
Risks:
- Trading options are limited.
- Outside of Binance, the purpose is unknown.
Cardano is number five (ADA)
Cardano is a proof-of-stake blockchain that utilizes ADA as its native currency. It was launched in 2017. The project’s creators claim that it will redistribute wealth through changing the banking system.
The entire supply of ADA is restricted to 45 billion units, which is secured via a “environmentally sustainable PoS protocol.” It consumes much less energy than Bitcoin and executes transactions considerably faster. Furthermore, before being deployed, all Cardano network updates are submitted to coin-holder consensus.
Cardano, on the other hand, does not currently enable smart contracts. It is anticipated to do so shortly, but its usefulness is restricted without smart contracts. Cardano is still very young, thus its resistance to broad volatility has yet to be proven. Cardano may be purchased via Coinbase, Crypto.com, and Kraken.
Advantages:
- Network that is environmentally friendly
- PoS protocol that is quick
- In addition, it serves as a governance token.
- Total stock is limited.
Risks:
- Currently does not support smart contracts.
- A new coin with a short history.
XRP is the sixth cryptocurrency (XRP)
XRP, often known as Ripple, is the native token for RippleNet, a digital payment network run by the Ripple business. XRP, on the other hand, is a cryptocurrency that does not use the blockchain. It instead uses the open-source XRP ledger.
The benefit of XRP is that it can be used to transfer money in a very quick, cost-effective, and scalable manner. As a result, it may be a viable alternative to sluggish conventional transaction methods like wire transfers. It also validates payments using independent validator nodes rather than PoS or PoW, which speeds up transactions.
However, XRP is presently involved in a complex SEC litigation that may have an impact on its value and has made it difficult to purchase in the United States. Furthermore, although RippleNet has the potential to be revolutionary, it does not need XRP to operate or process payments.
The total quantity of XRP is limited to 100 billion units. On Kraken, you may buy XRP.
Advantages:
- Processing time is very quick.
- Extremely low costs
- The concept has the potential to be revolutionary.
- Scalable to any size
Risks:
- Problems with the law right now
- RippleNet does not need XRP to operate.
Polkadots, no. 7 (DOT)
DOT is a new kind of cryptocurrency intended to make the movement of a variety of data and assets easier. It’s the Polkadot protocol’s native token, meaning there’s no limit to how many coins there are.
The coin’s advantage is that it can be used to execute transactions on several blockchains at the same time fast and safely. As a result, it may be expanded in the future to serve an ever-growing network. DOT may also be used to link multiple blockchains together or to build other decentralized apps.
One disadvantage of DOT is that it is still in its early stages, making it difficult to predict its future worth. Furthermore, DOT competes in the same space as many other smart contract platforms, making it impossible to predict its long-term viability. Polkadot is a cryptocurrency that can be purchased on Coinbase, Crypto.com, and Kraken.
Advantages:
- Multiple blockchains may be connected.
- Scalable to any size
- High-level security
- Quick processing times
Risks:
- Market history is limited.
- Market competition is fierce.
Uniswap is an acronym that stands for “universal swapping” (UNI)
Uniswap, a prominent decentralized trading system, has its own native coin, UNI. Uniswap works without a central authority, unlike centralized trading platforms like Kraken and eToro. It also uses a proprietary automated liquidity mechanism to expedite the processing of orders.
The native currency of Uniswap, UNI, is a governance token. As a result, UNI owners have input on the Uniswap network’s operation. You have greater power the more UNI you have. While UNI isn’t a traditional store of wealth, the tokens are expected to appreciate in value over time.
While many people think Uniswap will be successful, there is no assurance. The UNI token may lose value if Uniswap becomes less popular. Furthermore, there is no hard limit on the amount of UNI tokens that may be purchased. Following the first release of 1 billion UNI tokens, there will be a 2% annual inflation rate, which may influence the token’s value. Coinbase, Gemini, and Kraken are all places where you may buy bitcoin.
Advantages:
- An innovative DeFi protocol’s native token
- It’s a governance token.
- Over time, the value of the asset has the potential to rise.
Risks:
- A newcomer with a spotty track record
- There is no strict limit on overall supply.
9. Exceptional (XLM)
The lumen, or XLM, is the Stellar network’s native token. Stellar is a revolutionary method for storing and transferring money. It was launched in 2014 with the goal of making transfers simpler for those without access to conventional financial systems.
The lumen is a low-cost and quick method to send money across the globe. It is comparable to XRP in that its transactions are similarly inexpensive and quick. Stellar is also working hard to link its network to major financial institutions in order to make international money transactions easier.
However, compared to XRP, the lumen has a lower market value and a shorter track record. Because the lumen is not intended for profit, it may not be a significant store of value. However, if Stellar’s idea succeeds, the lumen’s worth may rise as more people utilize the network.
The total supply of XLM is limited to 50 billion units. Coinbase, Crypto.com, and Kraken all accept Stellar.
Advantages:
- Designed to make low-cost money transfers easier.
- Transaction costs are very cheap.
- Developing a new business model
- It has the potential to provide economic and societal advantages.
Risks:
- Only a few years of experience
- In the same vein as XRP
- This is not a for-profit network.
Litecoin is the tenth cryptocurrency (LTC)
Litecoin was created in 2011 as a direct reaction to the inadequacies of Bitcoin. Litecoin is a cryptocurrency that is based on Bitcoin, although it is intended to execute transactions considerably more rapidly and inexpensively than Bitcoin.
Litecoin’s advantages include significantly quicker block times, very cheap transaction fees, and an 84 million coin maximum supply. Because it is more useful for usage as a currency, Litecoin is now one of the most commonly accepted currencies for everyday transactions.
However, as the front-runner for the greatest Bitcoin alternative, Litecoin is always in competition with Ethereum. The currency has also been steadily losing market share over the years, causing some concern about its future. Coinbase, Gemini, and Kraken all accept Litecoin.
Advantages:
- Block timings are very quick.
- Fees are almost non-existent.
- Coin that is widely acknowledged.
- a proven track record
Risks:
- Market share dwindling
- Inadequate brand recognition
Bitcoin Cash is number eleven (BCH)
Bitcoin Cash is the outcome of a Bitcoin protocol hard fork. It was founded in 2017 as a result of a disagreement about Bitcoin’s scalability. The concept behind Bitcoin Cash is to use it to fuel a highly scalable peer-to-peer money transfer system.
Bitcoin Cash has a bigger block size, which is a benefit. As a result, it can process more transactions for less money. At the same time, only 21 million coins are available. As a result, if Bitcoin Cash becomes a widely used money transfer method, the price of the currency may rise.
The majority of Bitcoin Cash’s flaws stem from its branding. The currency hasn’t gained the same traction as Bitcoin, and many people are confused between the two. It’s also less liquid and less lucrative to mine than Bitcoin. Coinbase, Gemini, and Kraken all accept Bitcoin Cash.
Advantages:
- Block size is larger than bitcoin’s.
- Transactions that are quick and low-cost
- Scalable to any size
- Total stock is limited.
Risks:
- Mining profit margins are shrinking.
- Issues with branding and popularity
Chainlink is number twelve (LINK)
The native token for Chainlink is LINK. Chainlink is a decentralized Oracle network that sends money and information using smart contracts. It’s designed to be quick, observable, and extremely secure.
LINK is the method through which network users pay for the network’s services. The entire quantity of LINK tokens is 1 billion, and the network is already exhibiting indications of significant potential development. As a result, as the network grows in popularity, LINK’s value may rise.
LINK’s worth, however, is contingent on Chainlink’s success. While many people are optimistic about Chainlink’s prospects, only time will tell whether this new network achieves its objectives. Chainlink is a cryptocurrency that can be purchased on Coinbase, Gemini, and Kraken.
Advantages:
- For a groundbreaking network, a utility token has been created.
- Transactions are very quick and safe.
- The Chainlink network is becoming more important.
- Total stock is limited.
Risks:
- a shaky track record
- The success of Chainlink determines the value of LINK.
What to Look for When Investing in Cryptocurrencies
There are many excellent cryptocurrencies in which to invest. But how can you determine which one is worth your hard-earned money when there are so many options? The following are four key characteristics to look for in a cryptocurrency:
Technology
When you purchase cryptocurrencies, you’re investing in technology since the quality of a coin’s underlying technology determines how valuable it is. The following are some key technological characteristics to consider while assessing coins:
- Smart Contracts: Smart contracts allow transactions and agreements to take place without the intervention of a third party.
- Scalability: A coin’s capacity to manage network expansion is referred to as scalability in cryptography. Small block sizes make networks like Bitcoin less scalable, which may lead to usability problems.
- Efficiency of Cost Transfer: Some coins may be transferred for less money than others. In the long run, this may save you a lot of money.
- Many coins have a maximum total supply, while others do not. Coins with a fixed supply may see long-term price rise, while inflationary coins function more like a central bank.
- The term “decentralization” is used to describe the fact that not all cryptocurrencies are decentralized. The supply and value of USDT and XRP, for example, are mostly controlled by their parent companies, making them centralized and susceptible to unexpected fluctuations.
- Security and privacy: Some cryptocurrencies enable users to conduct transactions in an unusual manner. In the spirit of complete transparency, some, such as Bitcoin, broadcast all public addresses on the public ledger.
Longevity
New cryptocurrencies are constantly being introduced to the market, but this does not always imply that they are a suitable investment. Cryptocurrencies that have not been thoroughly vetted are very dangerous.
As a consequence, the coin’s lifespan is often taken into account while making an investment. Tokens that have been around for a long time, like as Bitcoin and Ethereum, are usually more reliable. This is partly due to the fact that older, more established currencies are less likely to be full frauds, but it’s also due to the fact that you have more knowledge about the coin’s functioning.
Record of Achievement
Always consider how well a certain cryptocurrency has fared in the past, both in comparison to other currencies and fiat cash. Coins that show indications of consistent development may be good investment options.
Keep in mind, however, that previous performance is no guarantee of future success. The track record of a currency is only useful when combined with a thorough knowledge of how it operates and its potential for future development.
Liquidity
Because more liquid assets are simpler to trade, liquidity is a key issue in every asset class. This is especially true in the case of cryptocurrencies, where limited liquidity may exacerbate an already volatile system.
Furthermore, high liquidity indicates that a cryptocurrency has a lot of individuals interested in it. On centralized exchanges, more liquid currencies are simpler to purchase and sell at a good price.
Frequently Asked Questions About the Best Cryptocurrency to Invest In
Here are some of the most often asked questions regarding the best cryptocurrency to invest in.
What Is the Best Way to Purchase a Cryptocurrency?
Cryptocurrency may be purchased in one of two ways: via an exchange or through a brokerage. You may purchase cryptocurrency on an exchange like Coinbase, Kraken, or Gemini, and then transfer it to any other wallet. Buying crypto via a broker like Robinhood or SoFi Invest is simple, but you won’t be able to move your coins outside of the platform.
What’s the Difference Between Proof-of-Work (POW) and Proof-of-Stake (POS) Cryptocurrencies?
Mining on some blockchains is classified as Proof-of-Work (POW) or Proof-of-Stake (POS). To confirm transactions, POW needs miners to solve a mathematical problem. They are awarded with money in return. POS rewards miners that have a higher percentage of coins than other miners with blocks and coins. The more coins you “stake,” the more likely you are to win additional coins in the future.
What Is an Alternative Currency (Altcoin)?
Any cryptocurrency that isn’t Bitcoin is known as an altcoin. Because Bitcoin is regarded as the first cryptocurrency, every subsequent coin is referred to be an altcoin and is intended to solve a flaw in Bitcoin.
What Is a Stablecoin and How Does It Work?
Any cryptocurrency whose value is linked to a certain asset is known as a stablecoin. A coin may, for example, be linked to the US dollar or gold. Pegging, in theory, serves to keep a coin’s market price stable.
What Are Smart Contracts and How Do They Work?
On some blockchains, smart contracts are self-executing contracts. They’ve put agreement terms into their programming. When a buyer and seller agree to these conditions, the contract initiates a blockchain transaction. Ethereum popularized smart contracts, but they are also available on other blockchain networks.
Last Thoughts
There are over 4,000 cryptocurrencies on the market now, so you won’t run out of options for your next investment.
You now have some basic knowledge regarding which cryptocurrencies are the best to invest in. What matters is that you do your homework and choose coins whose underlying technology, track record, and potential for future development align with your investing strategy.
The best cryptocurrency to invest in 2024 for long-term is a question that has been asked many times. With the market being so volatile, it’s hard to know what coin will be worth a lot of money in a few years. This article will help you narrow down your choices and find the best coins for investment.
Frequently Asked Questions
Which Cryptocurrency will rise in 2024?
In 2024, the cryptocurrency most likely to rise is Ethereum.
Whats the best Cryptocurrency to invest in 2024?
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