Cryptocurrencies, usually called crypto coins, are a type of digital currency. They function on decentralized networks such as blockchains that provide transparent and unchangeable transaction registers. Due to crypto coins’ decentralized nature, the potential to deliver higher returns, and offering a hedge against inflation, cryptocurrencies have become a valuable asset to invest in. However, their highly volatile nature makes it essential to pick the right cryptocurrency.
Understanding this, our team at Coninfomania has analyzed all the major coins in the market and prepared a list of the best crypto coins to invest in right now. We measured all important factors, such as their project, technology, and more.
If you’re in a hurry, here is the list of the best crypto coins to invest in –
- Bitcoin: Biggest Market Cap
- Ethereum: Biggest dApps Player
- BNB: Low Transaction Fees
- Solana: Promosong Total Value Locked (TVL)
- Ripple: Cross-border Payments
- Dogecoin: Best Meme Coin by Market Cap
- Polkadot: Good Governance System
- Shiba Inu: Good Burning Mechanism
- Cardano: Blooming dApp Activity
- Avalanche: Reward Validators
That said, we recommend you thoroughly read about each crypto coin to determine whether it is a worthy investment.
1. Bitcoin (BTC)
- Market Cap: $1.2 Trillion
- Market Supply: 21 Million (Max)
- Year-over-year Return: 146.49%
Bitcoin is the oldest, most established, and heavily invested crypto coin in the market. Because it is a market leader, any difference in its price causes market fluctuations.
According to data from Curvo, Bitcoin’s year-on-year return in 2023 was 146.49%. Owing to this, the crypto king is among the best crypto coins to invest in this year.
Why invest in Bitcoin?
- Despite a rough 2023 with crypto exchange bankruptcies and waning investor confidence, Bitcoin still managed the gains, making it a good choice for investment as regulations are clearer now.
- Due to its looming halving event which historically has seen Bitcoin prices rally, now stands as a good time to buy Bitcoin.
- The inception of Bitcoin ETFs also places it as a top pick due to increased inflows.
What to consider while investing in Bitcoin?
- Bitcoin’s transaction speeds lag behind newer cryptocurrencies, making it inefficient for transactions that assume instant confirmation.
2. Ethereum (ETH)
- Market Cap: $367 Billion
- Market Supply: 120 Million
- Year-over-year Return: 72%
Ethereum is well-regarded as the most successful platform for decentralized applications (dApps) and smart contracts and serves as an industry benchmark. It is the native cryptocurrency of the Ethereum platform, serving as both a transaction fee payment method and fuel for executing smart contracts.
ETH is essential in decentralized finance (DeFi) applications on the Ethereum network, facilitating lending and borrowing and providing liquidity. Ethereum is constantly changing and improving, getting updates to grow transaction speed and decrease operating costs.
Why invest in Ethereum?
- With dApps surging, Ethereum is one of the best crypto coins to invest right now
- Ethereum is moving to a full Proof of Stake model, which is expected to improve efficiency
- The prospects of Ethereum ETFs also place it as a top pick due to expected adoption and inflows
What to consider while investing in Ethereum?
- Although the platform is very powerful, it sometimes faces network congestion
- Ethereum has a comparatively higher transaction fee
- Ethereum is undergoing a major upgrade known as Ethereum 2.0, which involves transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.
3. Binance Coin (BNB)
- Market Cap: $79.8 Billion
- Market Supply: 149.53 Million
- Year-over-year Return: 82%
Binance Coin (BNB) is the native cryptocurrency of the Binance exchange. Initially created as a utility token for discounted trading fees on the Binance platform, BNB has evolved to being used for transaction fee payments, trading, and participating in token sales on the Binance Launchpad platform.
BNB also powers the Binance Smart Chain, a parallel blockchain network that enables fast and low-cost transactions, decentralized applications (DApps), and DeFi protocols.
Why invest in Binance Coin?
- BNB boasts minimal transaction costs
- Its usefulness in the Binance exchange ecosystem adds value for investors who are regular exchange users.
- Binance uses a portion of its profits to buy back and burn BNB tokens every quarter, reducing the overall supply and increasing the value of the remaining tokens.
What to consider while investing in Binance Coin?
- A major concern for BNB is its centralization due to its close ties with the Binance exchange. Unlike decentralized cryptocurrencies, BNB’s governance is not distributed among a wide network of users.
- It also has been under the regulatory watch of multiple countries, affecting its wider use and recognition in the global financial arena.
- BNB’s value and utility are heavily dependent on the success and popularity of the Binance exchange. Losing market share or facing significant operational issues could negatively affect BNB’s demand and price.
4. Solana (SOL)
- Market Cap: $59.3 Billion
- Market Supply: 446 Million
- Year-over-year Return: 618%
Solana is a high-performance blockchain platform designed for fast and efficient decentralized applications and cryptocurrencies. Founded in 2017 by Anatoly Yakovenko, Solana stands out for its unique consensus mechanism called Proof of History (PoH), which works alongside the traditional Proof of Stake (PoS) system to improve the blockchain’s scalability and speed.
This combination allows Solana to process thousands of transactions per second with low transaction costs, making it a popular choice for developers in the cryptocurrency ecosystem who require high throughput and fast finality in their applications. It also holds a TVL of $3.365b.
Why invest in Solana?
- Solana is quite fast, with the ability to handle a swift 65000 transactions per second because of its unique Proof of History consensus mechanism.
- She spike of Solana meme coins like Dogwifhat (WIF) has given Solana a strong chance of gaining as it receives more community participation.
What to consider while investing in Solana?
- Solana has a track record of network outages that cast doubts on its dependability.
- Its architecture suffers from scalability issues when working with other blockchains, which could limit its universal application in different blockchain systems.
- Downtimes on the network are also a possibility, as seen on April 5th, and these events could have repercussions on SOL.
5. Ripple (XRP)
- Market Cap: $26.86 Billion
- Market Supply: 55 Billion
- Year-over-year Return: 25%
Ripple (XRP) operates on the RippleNet network, which is part of the Ripple payment protocol. It primarily aims to facilitate real-time cross-border payment systems for banks and financial institutions, offering fast transaction speeds and low fees.
RippleNet uses a consensus ledger and a network of validating servers, rather than a blockchain, to verify transactions. This setup allows for more scalable and efficient transactions compared to traditional blockchain-based systems. XRP acts as a bridge currency in the network, making it easier to conduct transactions between different currencies.
Why invest in Ripple?
- Ripple’s ability to facilitate faster and potentially cheaper cross-border transactions makes it among the best crypto coins to invest in for some, particularly those focused on payment solutions.
- The rising popularity of blockchain among financial institutions supports its promise and usefulness in the financial sector, positioning Ripple as a solid player in the space.
- Ripple has revealed plans to launch a stablecoin, an event that could bring more adoption to the token.
What to consider while investing in Ripple?
- It is highly centralized by its creator, Ripple Labs, raising concerns about centralization.
- Continuous lawsuits regarding its categorization and utilization in the United States have negatively influenced its wider adoption and performance.
- The lack of significant adoption outside of a few niche use cases has contributed to skepticism about XRP’s long-term viability and utility.
6. Dogecoin (DOGE)
- Market Cap: $21.9 Billion
- Market Supply: 143 Billion
- Year-over-year Return: 100%
Dogecoin (DOGE), initially created as a joke in 2013, is based on the popular “Doge” meme featuring a Shiba Inu dog. It was designed to be a more accessible and less serious alternative to Bitcoin.
Despite its humorous origins, Dogecoin has gained a significant following and has been used in various charitable events and crowdfunding campaigns.
Why invest in Dogecoin?
- Despite their unconventional origins, meme coins like Dogecoin have experienced periods of significant price appreciation.
- Speculation about potential Dogecoin payment integration on platform X, coupled with Elon Musk’s continued endorsement, could increase its popularity.
- The looming Dogecoin Day is a factor positioning DOGE as a lucrative buy due to the enthusiasm generated by the event.
What to consider while investing in Dogecoin?
- Dogecoin’s unlimited supply presents potential risks such as inflation and gradual loss of its value.
- While other more sophisticated cryptocurrencies received substantial formal development, Dogecoin depended on its community and meme appeal rather than new technical advancements or applications, which makes it stand apart in the range of investment options.
- Compared to other major cryptocurrencies, Dogecoin has relatively low institutional support.
7. Polkadot (DOT)
- Market Cap: $9.39 Billion
- Market Supply: 1.4 Billion
- Year-over-year Return: 23.26%
Polkadot (DOT) is a cryptocurrency and an integral part of the Polkadot network, a multi-chain blockchain platform designed to enable different blockchains to transfer messages and value in a trust-free fashion.
DOT serves several key functions within the Polkadot network, including governance, where holders can vote on network upgrades; staking, which involves locking tokens to support network operations and security as well as bonding, where tokens are used to connect new chains to the Polkadot network. This innovative architecture aims to solve scalability and interoperability issues in blockchain networks.
Why invest in Polkadot?
- Polkadot is designed to allow cross-blockchain transfers, providing high flexibility and scalability that fulfill many blockchain applications.
- It enables various blockchains to transfer messages and value in a trust-free fashion, sharing unique features while pooling their security.
- It employs a sophisticated governance system where all stakeholders have a voice.
What to consider while investing in Polkadot?
- The complexity of the underlying technology can put off new users and developers.
- Its interoperable protocols where it resides are pretty harshly competitive.
- Polkadot’s functionality and scalability largely depend on the successful leasing of slots to parachains through auctions, where projects lock up large amounts of DOT to secure network resources.
8. Shiba Inu (SHIB)
- Market Cap: $13.13 Billion
- Market Supply: 589 Trillion
- Year-over-year Return: 157%
Shiba Inu (SHIB) originated as a meme token in August 2020, inspired by the popular “Doge” meme featuring the Shiba Inu dog. Created by an anonymous individual known as “Ryoshi,” SHIB is designed as an Ethereum-based counterpart to Dogecoin, leveraging the Ethereum blockchain’s smart contract technology.
The token quickly gained popularity and a vibrant community, marketed as a “Dogecoin killer.” SHIB is part of a larger ecosystem that includes a decentralized exchange called ShibaSwap and additional tokens such as LEASH and BONE, aiming to foster a comprehensive DeFi ecosystem.
Why invest in Shiba Inu?
- Utilizing its viral success to create a powerful brand identity, Shiba Inu could yet see another good year if another meme season emerges.
What to consider while investing in Shiba Inu?
- Shiba Inu is characterized by severe price volatility, making it a risky investment choice.
- It is usually considered a speculative investment because it lacks solid fundamentals and real-world utility, which raises questions about its long-term prognosis.
9. Cardano (ADA)
- Market Cap: $16.15 billion
- Market Supply: 35 Billion
- Year-over-year Return: 32%
Cardano (ADA) is a digital cryptocurrency and blockchain platform that supports smart contracts, similar to Ethereum. The platform was created by Charles Hoskinson, one of the co-founders of Ethereum, and aims to provide a more secure and scalable infrastructure for the development and execution of decentralized applications (dApps).
Cardano is unique as it uses a proof-of-stake consensus algorithm called Ouroboros, which is designed to be more energy-efficient than the proof-of-work algorithm used by many other cryptocurrencies. ADA, the native token of the Cardano network, facilitates transactions and smart contract operations within the platform.
Why invest in Cardano?
- Cardano stands out with its focus on sustainability and scientific research.
- Cardano is designed to allow decentralized applications (dApps) and strong security measures, providing developers with a dependable platform.
What to consider while investing in Cardano?
- Its development and acceptance rate is relatively low
- Despite being decentralized in nature, it is not distributed as some other blockchain ecosystems.
10. Avalanche (AVAX)
- Market Cap:$12.9 Billion
- Market Supply:377 Million
- Year-over-year Return: 125%
Avalanche (AVAX), associated with the Avalanche blockchain platform, is designed to provide a highly scalable and decentralized framework for launching decentralized applications (dApps) and custom blockchain networks. It aims to address the scalability issues of older blockchains like Ethereum while maintaining robust security and rapid transaction processing speeds.
Why invest in Avalanche?
- Avalanche excels with fast transactions thanks to its high throughput and scalability.
- Its active rewards for validators and users fuel engagement and investment within the ecosystem.
What to consider while investing in Avalance?
How to select the right Crypto Coin?
While selecting crypto coins to invest in, you should consider these criteria –
- Fundamentals and Technical Analysis: Analyze the project’s fundamentals. This includes the coin’s purpose, the quality and openness of the developers, the backing of all the stakeholders, and the technology behind it. You can examine the project’s white paper, which provides all the technical details, the roadmap, and the use cases for the cryptocurrency.
- Market Capitalization: Generally, a higher market cap means a more established and widely accepted coin with lower risk and probably less growth opportunity than smaller-cap coins.
- Liquidity: It is paramount because it allows you to purchase and sell the coin without increasing the price. Liquidity can be evaluated by examining the coin’s trading volume on various exchanges. A higher turnover volume usually means greater liquidity.
- Historical Performance: Consider the coin’s historical performance to understand its volatility and market behavior, but remember, past results don’t guarantee future success. It is just to understand how the coin behaves when things change in the market.
- Latest News: Legal and regulatory news changes can significantly influence cryptocurrencies’ price and survival. Thus, keeping up-to-date with the most recent events in the legal field is necessary. Some coins are more in the line of regulatory attack, and such acts may depreciate their value.
FAQs
Which coin will boom in 2024?
With spot Bitcoin and Ethereum ETFs now upon us, the inflows brought about by these developments position these two cryptocurrencies at a favorable spot for further growth in 2024.
Which coin will be the best to buy by 2025?
Projects like Cardano (ADA) and Polkadot (DOT) are working towards solving scalability and interoperability issues, which could make them more prominent in the 2025 market.
What is the most traded crypto in 2024?
The most traded cryptocurrency often fluctuates, but historically, Bitcoin has held the title due to its first-mover advantage and large market cap. Ethereum follows closely as it is the backbone of many decentralized applications and the DeFi sector.
