What Are the Best Crypto Coins to Invest In?
Get ahead of the game with our analysis of the best cryptocurrencies to invest in this year. Learn which coins are poised for success and how to make the most of your investments.
Updated Apr 11, 2023
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You might be wondering why anyone would invest in crypto. Well, it may be surprising, but the cryptocurrency markets have caught the attention of investors seeking substantial returns, despite being known for their ups and downs.
To put it into perspective, the global cryptocurrency market had a value of $1.78 billion in 2021, and it's predicted to hit $32 trillion by 2027. That's a compound annual growth rate (CAGR) of 58.4%. Pretty fascinating, right?
A well-diversified portfolio that includes a variety of asset classes can help reduce overall risk and potentially increase returns over the long term.
And if you're still skeptical, there are some crypto success stories that might change your mind. Take Erik Finman, for example. He invested $1,000 in Bitcoin when he was just 12 years old and became a millionaire by the time he was 18. Or how about the Winklevoss twins, who famously sued Mark Zuckerberg over the creation of Facebook? They used some of their settlement money to invest in Bitcoin and are now billionaires.
Of course, not everyone who invests in crypto assets becomes a millionaire, and it's important to do your own research and assess the risks before jumping in. But with the potential for high returns in the bull market and exciting success stories like these, it's no wonder why crypto has become an increasingly popular investment option.
Why are cryptocurrencies so valuable?
Why are cryptocurrencies so valuable?
Cryptocurrencies are investment-worthy for a number of reasons, and no, it's not just because Elon Musk tweets about them. First off, they're growing in popularity. According to a survey by Gemini, 14% of Americans invested in the crypto markets in 2020, up from 8% in 2018.
Secondly, some crypto assets have seen impressive returns. For example, Bitcoin has had an average annualized return of 230% since its inception in 2009. Of course, there's no guarantee that past performance will continue, but it's worth noting.
Thirdly, cryptocurrencies offer a unique value proposition. They're decentralized, meaning they operate independently of governments and financial institutions. This can be seen as a positive in a world where many people are disillusioned with traditional institutions. Additionally, cryptocurrencies offer a degree of privacy and anonymity that's hard to find in traditional financial transactions.
Finally, the crypto industry is still in its early stages, meaning there's a lot of room for growth and innovation. For example, the rise of decentralized finance (DeFi), has opened up new possibilities for how cryptocurrencies can be used.
Cryptocurrency exchanges have made it a lot easier for new investors to convert their fiat currencies to crypto investments. As more people adopt cryptocurrencies and more use cases are discovered, the potential for growth is significant.
Cryptocurrencies are digital cash that you can use to make purchases or send funds to others. They're unique because they're not controlled by governments or banks. Instead, they're based on blockchain technology. Picture blockchain as a large, secure notebook that records all cryptocurrency transactions.
Creating new cryptocurrency units is called mining. However, it's not like searching for gold. Mining involves using powerful computers to solve complex math problems and add new transactions to the blockchain. This process keeps the cryptocurrency secure and reliable while rewarding miners with crypto.
Next, let's discuss smart contracts. These are self-executing computer programs that automatically enforce the terms of a contract when specific conditions are met. Smart contracts are stored on programmable blockchains—like Ethereum and Solana—making them transparent, secure, and tamper-proof.
Imagine you want to buy a car from someone overseas. You both decide to use a smart contract. You deposit the payment for the car, and the seller enters the ownership details into the smart contract. When the car is delivered and approved, the smart contract automatically transfers ownership and funds. This eliminates the need for intermediaries such as lawyers or banks.
The added security and innovation provided by cryptocurrencies make them an attractive investment option. Although the market is relatively young, the rapid pace of technological advancements and growing adoption in the crypto space contribute to the potential for higher market values in the long run.
Smart contract technology has disrupted the market by introducing unique use cases like virtual real estate, NFTs, and decentralize finance applications. A lot of crypto projects have leveraged the technology to build user-friendly applications on different decentralized protocols.
Crypto coins vs. tokens
Crypto coins vs. tokens
Cryptocurrencies come in various forms based on their technology, purpose, and function. The two main types are crypto coins and crypto tokens.
Crypto coins, such as Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH), are digital currencies that operate on their own blockchain networks. They primarily serve as a means of exchange and a store of value. These coins have their own blockchain and their value is determined by market demand, and their supply is limited.
Meanwhile, crypto tokens are digital assets built on existing blockchain networks, like Ethereum. Tokens can represent assets or utilities and be used for various purposes—fundraising, governance, or access to products and services. Examples include ERC-20 tokens like Uniswap (UNI) and Apecoin (APE).
Tokens are often employed in fundraising events, known as initial coin offerings (ICOs), where investors can buy tokens to support a project or startup. These tokens can also be traded on cryptocurrency exchanges.
Depending on the use case, these tokens can be divided into categories like utility tokens, governance tokens, securities, and transactional tokens.
How to look for the best crypto to invest in
How to look for the best crypto to invest in
As an investor seeking the best cryptocurrency to invest in, it might be overwhelming with thousands of options available. To make an informed decision, consider four key factors before diving in.
- Stay informed about market capitalization. Rank cryptos by their market cap and monitor value trends. Be alert to market events affecting prices, as some coins display more volatility than others.
- Understand a coin's supply. Identify circulating coins and potential supply limits, as these can influence long-term prices. For instance, Bitcoin's finite supply leads to increased value in high-demand scenarios.
- Dig into a crypto's whitepaper. This essential document details the coin's purpose, utility, and technology. It's a way to ensure legitimacy—a must in today's crypto market.
- Evaluate the coin's utility and use cases. High-quality or expanding use cases garner investor and user interest. Conversely, declining use cases can negatively impact a coin's value. Following these guidelines will enable you to make savvy cryptocurrency investment choices.
Let's discuss some typical crypto scams and how to steer clear of them.
Firstly, phishing scams—they can be hard to spot, so always double-check the website URL and refrain from clicking on links from dubious sources.
Secondly, be cautious of Ponzi schemes that guarantee returns—if it sounds too good to be true, it probably is.
Fake ICOs and malware scams can also be hazardous, so it's vital to conduct thorough research before investing and use the latest antivirus software. Be extra careful with social media scams and pump and dump schemes—always verify the account before sending any cryptocurrency and do your own research before making any investment decisions.
Remember, staying secure in the world of cryptocurrency is all about being vigilant, doing your research, and being skeptical of anything that appears too good to be true.
Top 7 currencies to invest in the crypto market
Top 7 currencies to invest in the crypto market
The alternative investment landscape is thriving with excitement, owing to the rising interest in cryptocurrencies beyond Bitcoin. Digital assets like Ethereum, Cardano, Binance Coin, Dogecoin, Uniswap, and Solana present fascinating opportunities for crypto portfolio diversification and potential growth in value.
Furthermore, some of these cryptocurrencies also provide the option to earn crypto rewards through staking, adding another layer of appeal for investors looking to explore the ever-expanding world of digital assets. Let’s take a closer look at these cryptocurrencies, exploring their strengths and growth potential to help you make informed investment decisions.
1. Bitcoin (BTC)
- All-time Highest Price: $68,789
- Supply: 21 million
Bitcoin is the OG cryptocurrency and remains the most well-known and widely used digital asset globally. It was launched in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. As both the first and largest cryptocurrency, Bitcoin is often considered a sound investment choice in the crypto market.
Bitcoin represents a financial system that is free of middlemen and centralized controlling authorities without compromising security. This idea has made this digital currency very popular among people looking to find a hedge against inflation. There are communities within the crypto space that argue that bitcoin should be used as a payment method internationally as well.
Throughout its history, Bitcoin has gone through numerous price fluctuations. It reached its all-time high of $68,789 in November 2021 but has experienced significant declines on several occasions. Despite these fluctuations, Bitcoin has consistently rebounded and maintained a strong upward trajectory overall.
Many experts and investors remain bullish about Bitcoin's long-term potential. Factors contributing to its continued growth include its limited supply, increasing institutional investment interest, and growing awareness and acceptance as a mainstream asset. Some analysts predict that Bitcoin could reach new heights in the coming years, with price targets ranging from $300,000 or more.
One major advantage of Bitcoin is its strong network security, owing to the extensive mining infrastructure that supports its proof-of-work consensus mechanism. Additionally, Bitcoin has proven itself as a store of value over the years, often compared to digital gold, and has demonstrated resilience during periods of economic uncertainty.
Despite its fluctuations, many investors still consider Bitcoin to be a relatively safe and lucrative choice for investment. Its track record, widespread recognition, and market dominance make it an appealing option for newcomers and seasoned investors alike.
2. Ethereum (ETH)
- All-time High Price: $4,891
- Supply: Infinite
The Ethereum blockchain has undoubtedly made waves in the crypto world, and it's no wonder investors are eyeing it. ETH is the native cryptocurrency of the Ethereum blockchain and it has been dominating the altcoin market since its inception.
According to one analysis, Ethereum has outperformed Bitcoin in terms of growth, increasing by over 3,000% in 2021 alone. The rise of decentralized finance (DeFi) have contributed to the demand for Ethereum, as it's the backbone of these industries. Non-fungible tokens and virtual real estate have also contributed to the overall success of the native token.
Ethereum's price history shows that the cryptocurrency has had a volatile but overall positive performance.
Since its launch in 2015, Ethereum has gone through several boom-and-bust cycles. However, its overall trend has been upward, with its price increasing from around $2 in 2015 to over $4,000 in 2021.
As the Ethereum network supports smart contracts, it has attracted considerable adoption, leading experts to foresee a sustained upward trend in its price. Projections indicate that Ethereum could potentially achieve a price of $10,000 by the end of 2023 or climb as high as $20,000 by 2025.
The increased interest in Ethereum can be attributed to the broad array of innovative use cases across the cryptocurrency landscape. These use cases have also helped Ethereum create a vast following in the crypto community.
Ethereum’s staking model allows users to earn rewards based on their investment by locking their tokens for a specific period of time.
Overall, Ethereum has shown strong potential as an investment, with a track record of growth and promising predictions for the future.
3. Cardano (ADA)
- All-time High Price: $3.10
- Supply: 45 billion
Cardano is a blockchain platform that aims to provide more advanced features than its competitors. The crypto project aims to compete with Ethereum to become the best blockchain network by leveraging smart contracts and other blockchain innovations.
Investing in Cardano (ADA), the native token of the blockchain, makes sense now because of its potential to become the next major player in the crypto market.
Cardano's blockchain uses a proof-of-stake consensus mechanism that is more energy-efficient than Bitcoin's proof-of-work. Additionally, Cardano's blockchain is capable of executing complex smart contracts and decentralized applications.
Cardano has shown a steady increase in price since its launch in 2017, reaching an all-time high of $3.10 in September 2021. It’s predicted that Cardano's price will continue to rise in the coming years.
It is predicted that Cardano is expected to be one of the best-performing cryptocurrencies in the years to come, with a possible price range of $2.24 to $3.31 by the end of 2023. A potential long-term growth rate of 6% can be expected in the next five years.
Cardano also uses an architecture that enables reduced transaction costs, making it a better alternative to the ethereum network.
Overall, the potential of Cardano as a blockchain platform, combined with its steady price growth, makes it an interesting investment opportunity for those interested in the cryptocurrency market. However, as with any investment, it is important to conduct thorough research and weigh the potential risks and rewards before making a decision.
4. Binance coin (BNB)
- All-time High Price: $686.31
- Supply: 157.9 million
Binance Coin (BNB) is a cryptocurrency developed by the Binance, one of the largest centralized exchanges globally, boasting daily trading volumes in billions of dollars.
As the native token of the Binance ecosystem, BNB plays a crucial role in the exchange and the Binance Smart Chain (BSC).
Crypto users can utilize BNB to pay transaction fees, obtain discounts while trading, and access other benefits. Additionally, Binance Coin finds applications in participating in token sales through the Binance Launchpad platform and various other use cases within the Binance ecosystem.
Over the years, Binance Coin has had a volatile performance. In 2017, BNB was launched at a price of $0.10, and it reached its all-time high of $690 in May 2021. As of April 2023, the price of Binance Coin is hovering around $315. Despite the volatile performance, BNB has been a profitable investment for many traders and crypto investors.
Over the years, Binance Coin has had a volatile performance. In 2017, BNB was launched at a price of $0.10, and it reached its all-time high of $690 in May 2021. The price of Binance Coin is currently at
. Despite the volatile performance, BNB has been a profitable investment for many traders and crypto investors.
BNB remains one of the best crypto coins and is expected to continue its upward trend. BNB could reach a price of $676.91 in one year and $1,383.38 in five years based on current projections. Additionally, Binance has been expanding its services and offerings, which could contribute to the growth of Binance Coin's value.
Overall, BNB is a popular investment choice for crypto traders and investors due to its utility on the Binance platform and its potential for growth. Its link to Binance, one of the biggest cryptocurrency exchanges, has given it an edge due to the trust and popularity of the platform.
5. Dogecoin (DOGE)
- All-time High Price: $0.682
- Supply: Infinite
Dogecoin (DOGE) has gained immense popularity in recent years. While originally created as a meme coin, DOGE has since gained a substantial following, with many investors seeing it as a potentially profitable investment opportunity. One reason DOGE is considered a good investment is due to its strong community of supporters, which has helped to increase its popularity and drive up its value.
In terms of performance, DOGE has had a volatile history. In early 2021, the price of the crypto coin soared, reaching an all-time high of $0.69 in May before experiencing a significant drop in value. The price of DOGE is currently
Despite its ups and downs, some investors remain optimistic about the future of DOGE. DOGE could reach $1 by the end of 2023 and even has the potential to reach $5 by the end of the decade.
Furthermore, the meme coin has received recent attention after Twitter adopted the Shiba Inu logo, which is the dog breed featured in the famous doge meme. This adoption led to DOGE futures setting a new record in trading volume. Such attention and adoption from mainstream platforms can be considered positive signs for cryptocurrency.
However, it's important to understand that Doge has a reputation as a pump-and-dump coin. Some even argue that Elon Musk has a lot to do with the price movements of the coin. Where it offers decent returns, there is a substantial risk involved with it. So, it's advised that you invest in Doge according to your risk appetite.
6. Uniswap (UNI)
- All-time High Price: $44.97
- Supply: 1 billion
Uniswap is a decentralized exchange (DEX) that’s been making waves in the cryptocurrency space. The crypto project was launched in November 2018 on the Ethereum network and has quickly become one of the most popular DEXs in the market.
Uniswap is known for its simplicity and transparency, which has made it a go-to decentralized cryptocurrency exchange for many traders. It has been measured by daily trading volume and currently ranks in the top five.
Over the past year, the price of Uniswap's native token, UNI, has been highly volatile, reaching an all-time high of $48.85 in 2021, and dropping to $5.5 in April 2023. Despite the volatility, many experts predict that Uniswap's price will continue to rise in the future, making it one of the most promising crypto projects.
Uni token is expected to have a price of $55.78 by the end of 2023 and may rise to as high as $142.65 by 2028. Some bullish forecasts also predict a price of $76.28 by the end of 2023 and $203.95 by 2028. This creates a brilliant potential for early investors to get a potentially decent return.
Uniswap is a promising investment opportunity for those interested in decentralized crypto exchanges. Its user-friendly platform and growing popularity make it an attractive option for traders. While past performance has been volatile, future price predictions suggest that Uniswap could see significant growth in the coming years making it one of the best cryptocurrency projects to invest in.
7. Solana (SOL)
- All-time High Price: $260
- Supply: Infinite
Solana is a blockchain platform that has been gaining popularity recently due to its speed, low transaction fees, and security features. Solana is currently the fastest blockchain in the world, with the ability to process up to 65,000 transactions per second (tps). This is a significant improvement over Ethereum’s current capacity of 15 tps, and it positions Solana as a strong contender in the blockchain space.
Solana’s ability to execute smart contracts brings the capability of building decentralized applications on the platform, which puts it in the race with the Ethereum blockchain, Cardano, and other programmable blockchain platforms.
Solana's high throughput is achieved through its unique design. The platform uses a combination of several innovative technologies, including a proof-of-stake consensus algorithm and a system called Tower BFT that allows for parallel transaction processing. The architecture also enables transactions to be swift and cheap as compared to other blockchain platforms.
Solana was designed by Anatoly Yakovenko, a former software engineer at Qualcomm and Dropbox.
Aside from its speed, Solana also offers lower gas fees compared to other blockchains like Ethereum. Gas fees refer to the transaction costs on the blockchain, and they can be a significant barrier to entry for users.
According to Mintable, Solana's gas fees are about 1000x lower than Ethereum blockchain, making it a more affordable option for users looking to transact on the digital ledger.
Finally, Solana's security features are also worth noting. The platform is designed to be more resistant to attacks, with measures like transaction replay protection and a robust validator set. These features make Solana a more secure option for users looking to transact on the blockchain.
Like Ethereum, Solana also offers staking where users can earn rewards by merely holding the token for a specific period of time.
Overall, Solana's combination of speed, low transaction fees, and security features make it a valuable blockchain platform. Its unique design and innovative technologies position it as a strong contender as compared to other crypto assets.
Are cryptocurrencies good investments?
Are cryptocurrencies good investments?
Investing in cryptocurrency is like a game of musical chairs—one minute, you're up, and the next minute, you're down. Investing in cryptocurrency can be highly speculative and comes with high risks, but it could present great opportunities as well.
Despite popular belief, cryptocurrency prices aren’t random. The price is mainly dependent on supply and demand. This makes timing the market a necessary skill to have in this space.
However, with its high volatility and unpredictability, it's no surprise that analysts warn that investing in cryptocurrency isn't for everyone. Plus, with its lack of central regulatory authority, crypto is vulnerable to security risks such as hacking and fraud.
Cryptocurrency isn't a traditional investment, and its market value is largely based on market demand and speculation. So, it seems that investing in cryptocurrency is like playing a game of high-stakes roulette. To succeed in the space, one should carefully evaluate the risks and learn different types of analysis on cryptocurrency charts.
With that said, once the security and risks are totally understood, cryptocurrency can help create wealth out of normal investments. Early investors have been enjoying the fruit for years and continue to invest in new projects.
You can figure out the best investment strategy based on your risk appetite and initial investment capital to have the best chances of successful investing. For people looking to invest a small fraction into this space, a new crypto project with good utility may be the best way to go, while for risk-averse investors, the curated list will do the trick.
Deciding on a crypto allocation
Investing in cryptocurrency can be a great way to diversify your investment portfolio and potentially earn high returns. However, deciding how much of your portfolio should be allocated to cryptocurrencies can be challenging. The ideal percentage of crypto in your portfolio largely depends on your risk tolerance, investment goals, and financial situation.
Most financial experts recommend keeping your cryptocurrency allocation between 1% and 5% of your total investment portfolio. This means that if you have a $100,000 portfolio, you should allocate between $1,000 and $5,000 to cryptocurrencies. However, it's important to note that investing in cryptocurrency comes with a high level of risk, and you should only invest what you can afford to lose.
On the other hand, a slightly higher allocation of up to 10% is suggested for those who are more comfortable with risk and have a longer investment horizon. However, it's important to note that investing in cryptocurrency is not suitable for everyone, and it's essential to do thorough research before making any investment decisions.
While cryptocurrency can be a valuable addition to your investment portfolio, it's important to allocate only a small percentage of your portfolio to it and conduct thorough research before investing. A well-diversified portfolio that includes a variety of asset classes can help reduce overall risk and potentially increase returns over the long term.
There are many cryptocurrencies available for investment, but determining the best crypto to buy can be complex and challenging. Factors such as market capitalization, adoption rate, availability on cryptocurrency exchanges, and real-world use cases are just a few of the considerations that investors must make when looking for promising cryptos to add to their portfolios.
It's important to conduct thorough research and analysis and to stay informed about the latest trends and developments in the crypto markets. With careful consideration and a deep understanding of the complexities of the market, investors can potentially identify the best crypto projects for their investment portfolios and position themselves for long-term success, especially during a bear market.