Are you curious about cryptocurrencies and want to invest in future digital currency? Or, are you finding it challenging to figure out which crypto is best to buy today for the long term?
Well, we have figured out the best cryptocurrency to invest in 2024 and beyond! But let’s understand the traction and attraction towards cryptocurrencies first.
Cryptocurrencies have gained significant attention worldwide due to their rapid growth and innovative projects. This growth trend, driven mainly by institutional adoption, has raised global interest in the crypto market.
Given all the glitters, we are here to help you in deciding where to put your hard earned sum and detail you about the best cryptos giving the best returns so far.
Cryptocurrency Market Overview
The cryptocurrency market has grown tremendously over the past decade. Again, let’s understand it year-wise:
- In 2013, the total market capitalisation of all cryptocurrencies was just $1.5 billion.
- Fast-forward to the 2021 bull run, and it reached its peak of nearly $3 trillion.
- However, as of 23 April 2024, the global crypto market cap is currently $2.43 trillion.
Despite the volatility, many institutional investors, such as investment banks and pensions, have started exploring cryptocurrencies. El Salvador began accepting Bitcoin as legal tender, and major companies like Tesla, Square, and MicroStrategy hold Bitcoin on their balance sheets. These organisations and their leaders consider Bitcoin the best crypto to invest in for the future.
10 Best Crypto To Invest In 2024
With thousands of cryptocurrencies to choose from, picking the best crypto to invest in 2024 for long-term growth can be challenging.
We have extensively researched fundamentals, technology, leadership, and real-world adoption to select the most profitable cryptocurrencies. These crypto coins show strong potential to transform markets, drive innovation, and deliver value.
By investing in this diverse mix of established and emerging crypto assets across various sectors, you can capitalise on the expanding crypto and Web3 ecosystem. Let’s explore why these are the best crypto to invest in for the long term:
1. Bitcoin (BTC)
Bitcoin is the most popular and the best crypto to invest in 2024. As the original cryptocurrency created by the mysterious Satoshi Nakamoto, Bitcoin pioneered the peer-to-peer digital payment system based on blockchain technology.
With a fixed maximum supply of 21 million BTC, Bitcoin has digital scarcity. This makes BTC similar to gold and makes it attractive as an investment product and inflation hedge. Bitcoin is still the best crypto to invest in 2024 and beyond.
Quick View:
- Market Cap Rank: 1
- Market Cap: $ 8.4 Billion
Why Is Bitcoin The Best Crypto To invest in?
- BTC remains the digital gold, offering scarcity as it has a limited supply of 21 million.
- Bitcoin ETFs are launching, opening doors for traditional investors to invest.
- Growing institutional adoption makes it a solid foundation for any crypto portfolio.
Key Risks:
- BTC works on proof-of-work, which consumes a lot of electricity.
- Regulatory scrutiny is always a major concern.
BTC Investment Strategies:
- Consider dollar-cost averaging (DCA) to mitigate volatility and hold for the long term.
BTC Investment Options:
2. Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market cap and the leading smart contract platform that powers a decentralised finance and NFT ecosystem. Ethereum enabled key DeFi innovations like automated market makers, yield farming, and crypto lending and borrowing.
In September 2022, Ethereum completed The Merge upgrade, which transitioned its consensus mechanism to Proof-of-Stake. This reduces Ethereum’s energy usage while maintaining security. As Web3 and metaverse applications continue gaining traction, Ethereum remains at the forefront of innovating the next generation of blockchain use cases.
Quick View:
- Market Cap Rank: 2
- Market Cap: $ 2.83 Billion
Why Ethereum Is The Best Crypto To Invest In?
- Leading platform for DeFi, NFTs, and dApps.
- Proof-of-stake improves scalability and sustainability.
- It supports Layer 2 solutions like Arbitrum, which offers fast transaction speeds and low fees.
Key Risks:
- There is increasing competition from other smart contract platforms like Solana and Polkadot.
- Ethereum has higher transaction costs; sometimes, they can be even higher than the transaction value.
ETH Investment Strategies:
- Consider dollar-cost averaging (DCA) and hold for the long term.
ETH Investment Options:
3. Binance Coin (BNB)
Binance Coin is the native coin of the Binance exchange. BNB can be used to pay exchange fees such as trading and withdrawal fees (for buying or selling coins). When you use BNB coins, you will get a discount on fees on the Binance exchange. This is a significant amount if you’re looking to do any serious trading.
Originating as an ERC-20 token on Ethereum, BNB now operates on its dedicated blockchain, the Binance Chain. This allows for power-decentralised applications and offers low transaction fees.
Quick View:
- Market Cap Rank: 4
- Market Cap: $ 46.5 Billion
Why Binance Coin Is The Best Crypto To Invest in?
- BNB benefits from the vast Binance ecosystem, offering utility for trading and discounts.
- Its network effect positions it for continued growth.
Key Risks:
- BNB is a highly centralised token and is dependent on Binance’s success.
- Potential regulatory challenges for centralised exchanges.
BNB Investment Strategies:
- Utilise BNB for exchange fees and explore DeFi opportunities within the Binance ecosystem.
BNB Investment Options:
4. Polkadot (DOT)
As a next-generation blockchain protocol, the Polkadot native DOT token aims to drive interoperability and cross-chain communication. Founded by Gavin Wood, one of the co-founders of Ethereum, Polkadot was designed to solve blockchain scalability and communication challenges. As with traditional chains, it allows transactions to run concurrently instead of sequentially.
Polkadot uses a Proof-of-Stake consensus where DOT holders can stake their tokens to help secure the network in return for rewards. As blockchain bridges continue gaining importance, the Polkadot appears well-positioned to play a leading role.
Quick View:
- Market Cap Rank: 13
- Market Cap: $ 8.5 Billion
Why Is Polkadot The Best Crypto To Invest In?
- DOT aims to solve blockchain interoperability, a critical challenge for wider adoption.
- Its unique architecture and growing ecosystem attract developers and users.
- DOT offers high stacking rewards of 10%–18% ARR.
Key Risks:
- The DOT supply increased by around 11% per year.
- Competition from alternatives like Cardano and Cosmos.
DOT Investment Strategies:
- Research projects building on Polkadot and consider staking DOT for potential rewards.
DOT Investment Options:
- Buy DOT on exchanges, participate in parachain auctions, and stake DOT for rewards.
5. Solana (SOL)
Solana is one of the hottest cryptocurrencies in 2021. It was designed for high-speed and high-volume transactions. It provides a more scalable and efficient solution to other blockchain networks.
Backed by investment from major venture capital firms, Solana continues to expand its ecosystem. If demand for greater blockchain scalability keeps increasing, SOL buyers could profit significantly from growing utility in 2024 and beyond.
Quick View:
- Market Cap Rank: 5
- Market Cap: $ 41.8 Billion
Why Is Solana The Best Crypto To Invest In?
- SOL has high-speed transactions and scalability.
- Attracting developers for DeFi, NFTs, and Web3 applications.
- The platform also has very low transaction fees.
Key Risks:
- Potential network congestion issues if adoption increases.
- Solana has had several network outages, making it difficult for its users.
SOL Investment Strategies:
- Research projects building on Solona and consider staking SOL for potential rewards.
SOL Investment Options:
- Buy SOL on exchanges and participate in Solana-based DeFi and NFT projects.
6. Polygon (MATIC)
Polygon (MATIC) works as a layer two scaling solution to overcome congestion and high gas fees on the Ethereum network. Polygon offloads transaction processing from the Ethereum mainchain. This preserves Ethereum security while allowing Polygon to provide faster and cheaper transactions.
Numerous decentralised apps use Polygon, including DeFi blue chips like Aave, Curve and SushiSwap. Major companies like Meta have also tapped Polygon for its low transaction costs. The growing adoption of Polygon makes it a crucial component in the Ethereum scaling roadmap.
Quick View:
- Market Cap Rank: 14
- Market Cap: $ 7.6 Billion
Why Is Polygon The Best Crypto To Invest In?
- Layer 2 solution that tackles Ethereum’s scalability issues.
- MATIC offers faster and cheaper transactions.
- Its widespread adoption by DeFi blue chips and major companies signifies its potential.
Key Risks:
- Dependency on the security of Ethereum
- Increasing competition from other scaling solutions.
MATIC Investment Strategies:
- Use Polygon for cheaper and faster Ethereum transactions and stake MATIC for potential rewards.
MATIC Investment Options:
- Buy MATIC on exchanges and use it for DeFi and NFT activities on Polygon.
7. Arbitrum (ARB)
Arbitrum, functioning as an Ethereum Layer 2 scaling solution, aims to enhance transaction efficiency and reduce costs. Arbitrum also uses fraud proofs and an arbitrator mechanism to settle disputes off-chain. This unique approach maintains compatibility with the EVM, making it easier to port apps to Arbitrum.
Quick View:
- Market Cap Rank: 38
- Market Cap: $ 2.3 Billion
Why Is Arbitrum The Best Crypto To Invest In?
- As another Ethereum scaling solution, ARB uses an optimistic roll-up approach.
- Offers fast transactions and compatibility with existing Ethereum applications.
Key Risks:
- ARB is a newer project compared to established Layer 2 solutions.
- Potential technical hurdles in scaling further.
ARB Investment Strategies:
- Explore DeFi protocols deployed on Arbitrum and their growing adoption.
ARB Investment Options:
8. Ripple (XRP)
As a highly efficient digital asset, Ripple focuses on facilitating cross-border payments. XRP uses a consensus protocol that enables ledgers to close much faster with minimal computing power than proof-of-work cryptocurrencies. This allows XRP transactions to settle in 3-5 seconds with negligible fees.
However, XRP trades freely on exchanges and does not require Ripple’s technology to be useful. Its speed and cost efficiencies give XRP utility for payments, lending and micropayments. As traditional finance moves towards real-time settlement, XRP is well-positioned thanks to its advanced blockchain.
Quick View:
- Market Cap Rank: 7
- Market Cap: $ 27.3 Billion
Why Is Ripple The Best Crypto To Invest In?
- XRP facilitates cross-border payments with its fast, efficient, and low-cost transactions.
- Financial institutions use it for quicker and less expensive settlements.
Key Risks:
- Ripple Labs is in a legal battle with the Securities and Exchange Commission of the United States.
- Competition from other payment solutions.
XRP Investment Strategies:
- Monitor Ripple’s progress in securing partnerships with traditional finance players.
XRP Investment Options:
9. Cardano (ADA)
Cardano is a blockchain platform for smart contracts. Its blockchain operates uniquely compared to others. ADA uses a dual-layer structure. One layer processes ordinary transactions, while the other layer processes smart contracts. This separation is intended to improve the speed of transactions.
Hundreds of projects, ranging from DeFi to gaming applications, are built on Cardano. ADA holders can also earn staking rewards to secure the network. As one of the cryptocurrencies with substantial community involvement, Cardano aims to create inclusive finance powered by verifiable blockchain applications.
Quick View:
- Market Cap Rank: 8
- Market Cap: $ 17.4 Billion
Why Is Cardano The Best Crypto To Invest In?
- ADA powers a smart contract platform with a unique dual-layer architecture, aiming for scalability and security.
- Cardano-based tokens and NFTs are built on the same architecture as the Cardano blockchain, which leads to lower fees and more secure transactions.
Key Risks:
- Slower development pace compared to some competitors.
- A limited number of dApps are currently deployed on Cardano.
ADA Investment Strategies:
- Consider staking ADA to earn rewards and research projects building on Cardano.
ADA Investment Options:
- You can buy ADA directly on crypto exchanges and invest in Cardano-based projects.
10. Dogecoin (DOGE)
Created as a joke, Dogecoin (DOGE) defied expectations by cultivating one of the most devoted followings in crypto. Based on the popular dog meme, Dogecoin was launched in 2013 as a fun experiment by developers Billy Markus and Jackson Palmer.
In 2021, the price of Dogecoin skyrocketed after endorsements by billionaires Mark Cuban and Elon Musk. The frenzy propelled its market cap to nearly $90 billion at its peak. While fundamentals remain questionable, DOGE continues to ride its hype as the original meme coin.
Quick View:
- Market Cap Rank: 10
- Market Cap: $ 11.2 Billion
Why Is Dogecoin The Best Crypto To Invest In?
- DOGE, the meme coin, enjoys immense popularity and community support.
- Strong influence from the actions of Elon Musk and other celebrities.
Key risks:
- Extremely volatile price movements.
- Limited underlying utility beyond its meme status.
DOGE Investment Strategies:
- Due to its volatility and meme-driven nature, approach DOGE with caution. Only invest a small amount you can afford to lose.
DOGE Investment Options:
Tips For Best Crypto To Invest (Long-Term Crypto Investing)
To pluck the sweetened fruits of success, strategizing and planning is crucial. Same goes with the crypto investments as well. When you are investing huge sums for a very long period of time, diligence is required.
Here are some tips which may give you an upper hand when it comes to investing in cryptocurrencies for long term:
1. Decide How Much To Invest
The most important step in long-term crypto investing is to decide. You can consider your financial goals, risk appetite, and investment horizon. If you are a beginner in crypto, you should limit your overall allocation to around 5- 10% of your net worth.
2. Use Reliable Cryptocurrency Exchange
Choose a cryptocurrency exchange or platform that allows you to buy, sell, and trade cryptocurrencies using different cryptocurrency pairs like BTC-USDT, ETH-USDT, etc. A reputable crypto exchange is essential for executing trades and security of your digital assets. Moreover, you can consider factors such as features and transaction fees.
3. Do Your Research
Conduct in-depth research and analyse the information about the crypto you want to invest in and market conditions. Dive into each cryptocurrency’s technology, team, partnerships, and market trends before making buying decisions.
4. Diversify Your Investments
Diversification is a key risk management strategy in any investment portfolio. Spread your investments across different cryptocurrencies to mitigate risk and capture potential opportunities. A diversified portfolio is more resilient to market fluctuations.
You can also rebalance your portfolio occasionally with changing market conditions to maintain your desired returns.
5. Manage Risk Wisely
Cryptocurrency is constantly threatened, from market crashes to hack exploits. To avoid panic moves, you can use security best practices like 2FA exchange logins, wallet passphrases, cold storage, multi-signature approval, etc. Also, determine acceptable sell points for your assets in advance. Always use a reliable cryptocurrency wallet to store your crypto assets.
You can also set realistic expectations and use risk management tools such as stop-loss orders, take profit orders and hedging strategies in the uncertainty of the crypto market.
Conclusion
Cryptocurrencies are new and emerging assets that offer high-profit potential. The best crypto coins and projects will continue to give good returns in 2024 and beyond.
You can earn good returns in the long term with these best crypto to invest in. However, investing in crypto comes with challenges and risks. The challenges can range from market volatility and scams to government regulations and security breaches.
Amidst these complexities, one aspect that often gets overlooked is taxation, which can lead to compliance issues. KoinX simplifies your crypto taxation and compliance, ensuring your journey in the crypto world is hassle-free. Why wait? Sign up for KoinX today and experience a better way to manage your crypto taxes!
Frequently Asked Questions
What Is the Best Crypto to Invest in For Beginners?
Bitcoin and Ethereum remain the safest and best crypto to invest in for first-time buyers. They dominate network security, development activity, institutional involvement, and integration. Major exchanges like Binance and Gate.io offer these top coins via mobile apps and websites for buying and selling.
What Is A Long-Term Cryptocurrency Investment?
Long-term crypto investing means buying and holding cryptocurrency for at least 3-5 years. This extended timeframe allows the crypto project to gain more adoption and price increases. Investors use this strategy to protect themselves from price fluctuations and plan to get a good return on their crypto investment.
Is Cryptocurrency Safe?
The safety of cryptocurrency depends on your actions. Since cryptocurrencies are stored directly on the blockchain, you are responsible for your private keys and wallet security. You can take security precautions to minimise risks.
One option is to use hardware wallets and strong passwords or enable 2-factor authentication for all your wallets and exchanges. Distributing assets across multiple wallets and backing up passphrases are other ways of securing cryptocurrencies.
