Best Cryptocurrencies To Invest: Top Picks For Your Portfolio

Cryptocurrencies are digital assets that people use for investments and purchases. They are incredibly volatile and are not for all investors. Bitcoin, the first cryptocurrency, is the most popular and highest-rated one. It is followed by Ether, which is the native token on the Ethereum blockchain. Other popular cryptocurrencies include Binance Coin, Tether, Cardano, Dogecoin, and Avalanche. When deciding which cryptocurrency to invest in, it is important to consider factors such as market capitalization, liquidity, and personal risk tolerance.

Bitcoin

However, investing in cryptocurrency is risky due to its extreme volatility. In 2022, the crypto market lost about $2 trillion in value, and more than 80,000 Bitcoin millionaires saw their fortunes drop. Cryptocurrency is also subject to fraud, with hackers stealing $400 million of crypto in the first three months of 2023.

Despite the risks, Bitcoin has had a strong performance in 2024. As of June 3, 2024, Bitcoin prices are up 62.8% year to date, and it currently trades for upwards of $69,000.

If you are considering investing in cryptocurrency, it is important to do your research and understand the risks involved.

Ethereum

The Ethereum network has been plagued with high transaction fees, and in May 2021, the average transaction fee peaked at $71.72. The London upgrade in August 2021 introduced several changes, including a "base fee" for transactions to be included in the next block and a "priority fee" for users who want their transactions prioritised.

In 2022, Ethereum plans to switch to a proof-of-stake algorithm with its Ethereum 2.0 update, which is expected to boost the platform's scalability and add new features.

Solana

The Solana blockchain also supports smart contracts, which are essential for running decentralized finance (DeFi) and non-fungible tokens (NFTs). The crypto app ecosystem on Solana supports billions of dollars worth of assets.

Tether

In addition to its USDT token, Tether has expanded its offerings with stablecoins pegged to other currencies, including the euro, Chinese yuan, and Mexican peso. The company has also ventured into new areas, such as renewable energy production, blockchain development, and education.

Binance Coin

Binance has launched a whole ecosystem of functionalities for its users, including the Binance Chain, Binance Smart Chain, Binance Academy, Trust Wallet, and Research projects, all of which employ blockchain technology. BNB is integral to the successful functioning of many of these sub-projects.

Binance offers advanced tools to increase profits with leverage, as well as various automated trading strategies that are easy, fast, and reliable. It also offers low fees, with over 350 cryptocurrencies to trade, making it a preferred exchange for many.

The Binance Coin network is secured by the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism. While it does not support smart contract functionalities, it provides scalability and allows for the creation of decentralised applications.

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