Asif is a cryptocurrency enthusiast and journalist who's been writing on the subject since 2014. He also has a keen interest in social engineering and cybersecurity. When not busy writing about cryptocurrency, he can be found reading books and listening to music. He holds an M.Sc in Life Science and an MBA in Finance & Banking.
If you are determined to build a strong cryptocurrency investment portfolio, we highlight the top seven areas to invest in. We also identify our methodology and why each cryptocurrency investment has high potential.
Do you currently own any cryptocurrency? If you don't, then you may consider buying just a little bit as digital assets have the opportunity to skyrocket over the next 5 to 10 years.
As the economy starts to adopt it into a real currency and asset class, it has no where to go but up. Learn a bit about the crypto world about which cryptos you should invest in 2023 and beyond.
7 Best Cryptos to Invest In
Summary of Best Places to buy crypto (& bitcoin)
Coinbase is supported in over 55+ countries, it is has maintained a great global reputation. Best beginner friendly exchange.
Binance is the largest crypto exchange in the world, and it dominates the field. Offers low trading fees and large amount of coins to trade.
Crypto.com is a cryptocurrency exchange app based in Singapore. It is on a mission to accelerate the world's transition to cryptocurrency.
The cryptocurrency space is something we are constantly learning more about. One of the first things to decide is which cryptocurrencies to invest your money in.
This article highlights the seven cryptocurrencies with the best potential to flourish over the next day. We also provide insights into how we assembled the list and what you should look for in crypto investment.
As we organized our list of top 7 crypto investments, here are the five critical areas we evaluated:
- Market Cap – also known as the crypto market capitalization, represents the cryptocurrency's total value. It multiples the total number of coins in circulation times the cryptocurrency's price.
- Longevity – the longevity of a cryptocurrency is its ability to endure through a volatile environment. Each cryptocurrency is a “project,” and the project's foundation will determine the coin’s strength and potential in the long run.
- Track Record – historical performance is an accurate indicator of how the coin will act in the future. Here, we paid close attention to how the price reacted in turbulent times and how it performed against other cryptos.
- Use Cases – apart from paying for goods or services, cryptocurrencies have several use cases. We examined how the seven cryptos impact commerce, entertainment, gaming, etc.
- Adoption Rate – What percentage of total crypto investors have the coin in their portfolio? Apart from retail and institutional investing, where else is cryptocurrency applied?
7 Best Cryptocurrencies to Buy Now
As you form your cryptocurrency portfolio, here are the best coins to start allocating your funds.
Bitcoin is a virtual currency that operates as a form of payment and money. It acts independently of a group, person, and entity, meaning there is no need for involvement from a third party.
Bitcoin is unlike a standard fiat currency like the dollar. You can trade, create, and distribute it through a blockchain decentralized ledger. Blockchain miners also receive Bitcoin in exchange for verifying transactions.
You can purchase Bitcoin on several exchanges, and it has become the most popular digital currency in the world. Bitcoin laid a solid foundation for other cryptocurrency projects.
Ethereum is a token that powers operations and transactions on the Ethereum network. All services and programs associated with this network will demand computing power, paid for and powered by Ether.
Ethereum is an attractive investment because it leverages blockchain capabilities to revolutionize the storage of financial records, consumer data, and other contact information.
It is the 2nd largest cryptocurrency in terms of market capitalization, behind Bitcoin. The big draw to Ethereum is its use in business and commerce.
Ethereum powers smart contracts through blockchain nodes, allowing for quick and efficient transaction processing time.
Solana is a blockchain platform that hosts scalable, decentralized solutions. It is an open-source project that provides a much faster transaction processing time than Ethereum.
The transaction fees are also much more affordable on Solana. Solana has the fifth largest market capitalization at $66 billion. It also has a proof-of-stake (PoS) blockchain while leveraging a newer technology referred to as Proof of History (PoH).
PoH verifies the passage of time and order for critical events. It also serves as a reliable solution for encoding the trustless passage of time within the ledger.
Binance Coin (BNB)
The Binance Exchange powers around 1.4 million transactions every second. The unique thing about Binance Coin is its process of burning Binance coins within the treasury.
Each quarter, 20% of the profits are utilized to repurchase or “destroy” the coins in the treasury. The market capitalization for the Binance coin is $56 million, only behind Bitcoin, Ethereum, and Tether.
Ripple is a diverse concept that operates as a digital payment network and cryptocurrency. The mission of Ripple is to power transactions, act as a remittance system, and provide a reliable payment settlement exchange.
Instead of blockchain mining, Ripple leverages a consensus mechanism of bank-owned servers to verify transactions. Compared to Bitcoin, Ripple expends much less energy per transaction.
It is also much more efficient and cost-effective. Ripple is one of the most valuable blockchain tokens in terms of market capitalization.
Terra is an open-source blockchain that supports algorithmic stablecoins, automatically tracking asset prices and fiat currencies. Terra blockchain allows users to save, spend, exchange, or trade Terra stable coins.
The protocol houses the Luna and Terra cryptocurrency tokens. When it comes to managing the Terra stable coin price, the protocol also ensures that Terra stablecoin supply and demand are constantly balanced.
He assessed the challenges and limitations of Ethereum, and then he incorporated key improvements into Cardano. The mission behind Cardano is to be a decentralized application development platform with the ability to verify smart contracts and act like a multi-asset ledger.
Cardano powers on the proof-of-stake Ouroboros consensus protocol.
Should I Invest in Cryptocurrency?
As you decide on your cryptocurrency investment journey, it is critical to determine your level of risk tolerance. Yes, cryptocurrency is a riskier investment than stocks and real estate.
However, the upside and potential for future applications are undeniable. Continue to do your research and start with investments in the seven cryptocurrencies above.
Before you begin your crypto investment journey, you must define your motivation to start in the first place. Below are the reasons why crypto could be a lucrative investment:
- Portfolio diversification – if you already have an established stock or real estate investment portfolio, a cryptocurrency portfolio could help diversify your risk.
- Efficiency – transaction speed and costs are much quicker with cryptocurrency than wire transfers or other standard money transfer methods.
- Accessibility – you can utilize cryptocurrency if you have a reliable internet connection, smartphone, or computer.
- Security – even if a hacker gains access to your crypto wallet, they cannot execute transactions on your behalf.
- Use case – cryptocurrencies like Ethereum will power smart contracts and how companies conduct business in the future.
Bitcoin and Ethereum are the two best cryptocurrencies to invest in because of their market cap, potential use cases, and current adoption rate.
However, all the cryptocurrencies on this list are a good place to start your journey.
Depending on your fund size and investment goals, you can own as many as you want. It would be best to start with the seven on this list and then progress to other interesting crypto projects.
Make sure to allocate your funds accordingly, based on risk and the methodology we described.
Coinbase is one of the leading cryptocurrency exchanges in the world for beginners. Get $5 Free BTC when you sign up.