Best Cryptocurrencies To Invest In For Long-Term Growth

Investing in cryptocurrencies is not for the faint of heart. Crypto is an incredibly volatile asset class, and investors need to decide if it fits their risk tolerance before diving in.

Bitcoin and Ethereum are in a league of their own as the two best cryptocurrencies to buy. Bitcoin, the oldest and most popular crypto token, is the first cryptocurrency and the largest by market capitalization. It has widespread adoption and recognition, and its fixed supply cap of 21 million coins makes it a good hedge against inflation. Ethereum is the second-largest crypto asset by market cap and the largest smart contract-capable altcoin in the market. Its native token, Ether, has inherent utility as the native token of a wildly popular network.

Other cryptocurrencies worth considering include Solana, Binance Coin, Cardano, and XRP. Solana is known for its fast transaction speed and low fees. Binance Coin is the native token of the Binance exchange, one of the largest crypto exchanges in the world, and offers several benefits to holders. Cardano is a decentralized blockchain project that emphasizes scalability, interoperability, and sustainability. XRP is a cryptocurrency designed to facilitate efficient cross-border payments and improve liquidity in financial institutions.

It is important to remember that investing in cryptocurrencies is risky due to market volatility and regulatory uncertainties. Investors must conduct thorough research and consider their risk tolerance before making any investment decisions.

Bitcoin

Another catalyst for Bitcoin's price is the Bitcoin halving event that occurs roughly every four years. This involves automatically halving the number of new BTC entering circulation every 210,000 blocks. Within 18 months of previous Bitcoin halvings, the price of the token has rallied fiercely.

Ethereum

The Ethereum Name Service, aka ENS, is a distributed and extensible naming system based on the Ethereum blockchain. ENS provides a solution to the problem of long and confusing crypto addresses by assigning human-readable names to machine-readable identifiers such as Ethereum addresses, metadata, other cryptocurrency addresses, and content hashes.

As of September 2024, the live Ethereum price is $2,345.88 USD with a 24-hour trading volume of $10,821,562,564 USD. Ethereum is down 0.42% in the last 24 hours. The current CoinMarketCap ranking is #2, with a live market cap of $282,285,513,642 USD. It has a circulating supply of 120,332,633 ETH coins and the max supply is not available.

Stablecoins

Tether (USDT)

Tether is one of the oldest and most well-known stablecoins, introduced in 2014. It is pegged 1:1 to the US dollar, meaning that the value of one Tether USDT is equal to $1. Tether is the largest stablecoin by market cap, currently valued at over $115 billion. It is also widely used, with a daily trade volume that exceeds its market capitalization. Despite some controversies regarding its reserves, Tether remains a dominant player in the stablecoin market.

USD Coin (USDC)

USD Coin is another popular stablecoin, currently ranked second in terms of market capitalization. It is pegged 1:1 to the US dollar and is known for its transparency and regulatory compliance. The company behind USDC conducts regular audits to ensure that there are enough US dollars in reserve to back the tokens in circulation. USD Coin has also expanded beyond the Ethereum blockchain and is now available on the Solana and Algorand blockchains.

Binance USD (BUSD)

Binance USD is a stablecoin offered by Binance, the world's largest crypto exchange. It is pegged 1:1 to the US dollar and is approved for use by the New York State Department of Financial Services (NYDFS). BUSD has a market cap of over $69 million and is commonly used in the decentralized finance (DeFi) scene. Users do not have to pay any fees when creating or redeeming BUSD.

Dai (DAI)

Dai is a unique stablecoin that is pegged to the US dollar but backed by ether tokens. It was introduced in 2015 and is governed by the autonomous MakerDAO. Dai is decentralised, allowing any user to mint DAI tokens by depositing their ether tokens as collateral. Dai has shown a propensity to remain pegged to the US dollar even in situations of high volatility.

TrueUSD (TUSD)

TrueUSD is a stablecoin that is fully backed by the US dollar and has claims of regular audits. It offers lower transaction fees than wire transfers of fiat currency and higher interest rates on stored balances. The company behind True USD, TrustToken, also offers stablecoins pegged to other major currencies, such as the Australian dollar and the British pound.

Paxos Standard (PAX)

Paxos Standard is a stablecoin that aims to maintain 1:1 parity with the US dollar. It was created in response to the Tether printing controversy and is FDIC-insured, addressing concerns about legitimacy. Paxos, the company behind PAX, is a regulated blockchain infrastructure platform that has secured significant funding and partnerships, indicating its potential for growth.

DeFi

Decentralized Finance (DeFi) is a blockchain-based financial system that eliminates the need for intermediaries like banks, offering faster and more cost-effective financial services. DeFi's primary functions include lending and borrowing of funds, trading cryptocurrencies on decentralized exchanges, and providing market liquidity.

• Ethereum (ETH): Ethereum is the main blockchain for DeFi, making it a key asset in any DeFi portfolio. It provides a solid infrastructure for DeFi applications and smart contracts, allowing developers to execute DeFi apps.
• Lido Finance (LDO): Lido Finance is a leading liquid staking protocol that enables users to stake Ethereum and other supported assets while maintaining liquidity. It has an impressive Total Value Locked (TVL) of over $22.5 billion, making it one of the largest DeFi protocols.
• Uniswap (UNI): Uniswap is the largest decentralized crypto exchange (DEX) protocol, providing liquidity to hundreds of different cryptocurrencies. It has a TVL of over $3.8 billion and is governed by UNI token holders, who actively participate in decision-making.
• Curve Finance (CRV): Curve Finance is a DEX that focuses on stablecoins and has interoperability with multiple blockchain networks. It has a TVL of $2.23 billion and is controlled by owners of the 'CRV' governance token.
• Balancer (BAL): Balancer is a DEX that offers investors access to non-standardized liquidity pools, allowing up to eight tokens in a pool. It has a TVL of over $993 million and its native token, BAL, is central to governance and liquidity incentives.
• Aave (AAVE): Aave is a decentralized money market protocol, allowing users to lend, borrow, and earn interest on cryptocurrencies. It has a TVL of $12 billion and its native token, AAVE, permits owners to vote on changes to the network.
• Compound (COMP): Compound is a lending platform that lets users lend and borrow a variety of crypto tokens, with dynamic interest rates and no credit checks. It has recorded a large surge in TVL and its native token, COMP, represents governance rights.
• Maker (MKR): Maker is a broader ecosystem that includes a lending platform, a decentralized stablecoin called DAI, and a DAO that runs the network. MKR token holders ensure decentralization through their governance model.
• Synthetix (SNX): Synthetix is a trading platform that allows users to mint and trade synthetic assets (synths) that track the price of real-world and digital assets. It is built on Ethereum and Optimism.
• DeFi Coin (DEFC): DeFi Coin is the native token of the DeFi Swap platform, a decentralized exchange offering yield farming, staking, and other interest-based services. It has a taxation system where each buy/sell order incurs a 10% tax, distributed to existing token holders and the liquidity pool.

It is important to note that investing in cryptocurrencies, including DeFi coins, carries risks. Conduct thorough research and consider your risk tolerance before investing.

NFTs

When it comes to investing in NFTs, it's important to remember that the market is still relatively new and highly speculative. NFTs, or non-fungible tokens, are unique digital assets recorded on a blockchain that represent ownership of a specific item, like a digital painting. They are different from cryptocurrencies in that they cannot be exchanged for goods and services in the same way.

Bored Ape Yacht Club (BAYC)

BAYC is arguably the most famous series of NFTs, with crypto enthusiasts and celebrities alike vying to get their hands on one. Created by Yuga Labs, each NFT provides members-only benefits, including exclusive access to new Yuga Labs projects. BAYC has a strong community and its NFTs have gained value due to their rarity and limited availability.

Mutant Ape Yacht Club (MAYC)

Also created by Yuga Labs, MAYC features 20,000 unique NFTs, half of which were airdropped to BAYC holders. These designs have become popular as social media profile pictures. With a current floor price of almost 1.9 ETH, MAYC has attracted investors looking for exclusive NFT projects and high returns.

CryptoPunks

One of the earliest and most established NFT projects, CryptoPunks was launched in 2017 and has become a staple of the NFT community. With only 10,000 CryptoPunks available, they are considered scarce assets. Each CryptoPunk is individualized with various combinations of characteristics, making them collectible and tradable. CryptoPunks have gained popularity due to their distinct and playful designs.

Pudgy Penguins

Pudgy Penguins is a well-received NFT project consisting of 8,888 hand-drawn penguins, each with distinct characteristics. The project has a strong community and grants members access to exclusive experiences and events. It has also added utility to the NFTs, which is uncommon, allowing Pudgy Penguin holders to join a loyalty program with access to upcoming drops and merchandise.

Decentraland

Decentraland is a decentralized 3D virtual world where users can purchase and rent plots of LAND, which are NFTs. The Decentraland metaverse is governed by its users in a DAO, and LAND owners have voting power. The cheapest parcels of LAND are currently priced at 0.37 ETH, making it an attractive investment option.

Gods Unchained

Gods Unchained is an award-winning, on-chain, NFT trading card game built on the Immutable layer 2 on Ethereum. Players can receive a starter pack of 140 cards to construct their first 30-card decks. Any card above a plain card can be minted as an NFT, and two plain cards can be forged together to create an NFT version. Gods Unchained is managed by veterans from the trading card space, making it a strong contender in the NFT space.

Frequently asked questions