Best Cryptocurrency Investments: Where To Put Your Money Now

Crypto is a hot topic in 2024, with thousands of coins to choose from and a market capitalisation of over $2 trillion. But with extreme volatility and risk, it's not an investment for the faint of heart.

Bitcoin and Ethereum are the two best-established cryptocurrencies and are in a league of their own. Bitcoin is the oldest and most popular token on the market, acting as an alternative means of payment and gaining the attention of investors, media and businesses. Ethereum is the second-largest cryptocurrency and the first to introduce smart contract functionality, which has led to its dominance in the market.

Other cryptos to watch include Solana, Binance Coin, Dogecoin, Cardano, XRP and Toncoin. These tokens have strong communities and unique features, such as low fees, high transaction speeds and strong security.

However, it's important to remember that the crypto market is highly volatile and investing in cryptocurrency is risky. Due diligence is essential before investing in any crypto project.

Bitcoin: the original cryptocurrency, recognised by major governments and used as legal tender in some countries

Bitcoin was the first cryptocurrency to emerge in 2009, and it has since become the largest by market capitalisation. It is also the most widely accepted cryptocurrency, with recognition from major governments and legal tender status in some countries.

Bitcoin is a peer-to-peer digital currency that operates as an alternative means of payment outside of the traditional financial system. It is protected by a Proof of Work consensus, which means that transactions are stored on a blockchain and verified by miners who are rewarded for each block of transactions they confirm.

The decentralised nature of Bitcoin has raised concerns among governments about its potential use for illicit activities and its impact on monetary systems. However, many countries have chosen to legalise its use, including the US, Canada, the UK, and Australia. In these countries, Bitcoin is recognised as a convertible currency or asset, and users are required to comply with relevant taxation and anti-money laundering laws.

In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, allowing its citizens to use the cryptocurrency for everyday transactions. This move was criticised by many central banks and financial institutions due to Bitcoin's volatility and the potential risks associated with its adoption. Despite the criticism, El Salvador's president, Nayib Bukele, has continued to support Bitcoin, even adding laser eyes to his Twitter profile picture to show his commitment to the cryptocurrency.

Overall, Bitcoin's status as the first and most widely recognised cryptocurrency, combined with its legal tender status in some countries, makes it a relatively stable investment option in the crypto space. However, it is important to note that the crypto market is highly volatile, and investors should always conduct thorough research before investing.

Ethereum: the first blockchain for smart contracts and dApp development

Ethereum is a blockchain platform that supports smart contracts, enabling complex use cases such as decentralised lending protocols and non-fungible tokens (NFTs). It is the second-largest cryptocurrency by market capitalisation and the most widely used blockchain network for dApp development.

Ethereum was founded by Vitalik Buterin, who published the Ethereum white paper in 2013. The Ethereum blockchain launched in July 2015.

Ethereum was the first blockchain to introduce smart contracts, which developers can use to create and automate several key features we take for granted today. It is also built to provide a platform for decentralised applications and finance, becoming the leading blockchain to service this need.

Market Capitalisation

Ethereum has a market cap of about $277 billion as of September 19, 2024, accounting for nearly 18% of the total cryptocurrency market.

Price

As of September 19, 2024, Ethereum's price was $2,438.53. This is an increase of 4.58% in the last 24 hours and 3.38% in the last week.

Performance

Ethereum's price has increased by 48.74% year-on-year. It has grown significantly over the past year, outperforming major altcoins.

Advantages

Ethereum remains the most popular blockchain for developers. It has a flywheel effect, where its size attracts more developers, which in turn attracts more users.

Ethereum has a large, active community driving innovation. It transitioned to a Proof-of-Stake validation mechanism in 2022, improving its energy efficiency.

Disadvantages

High usage leads to slow transactions and high gas fees. Ethereum is vulnerable to bugs and exploits in poorly written contracts.

Investment Outlook

Ethereum ETFs started trading in July 2024, with crypto analysts estimating capital inflows of $3 to $4.8 billion in the first five months. This could cause a massive supply crunch and price increase for ETH.

The most optimistic Ethereum price prediction points to a valuation of over $7,000 by 2025.

XRP: a network for fast, low-cost cross-border transactions

XRP is the official crypto token of the Ripple payment network, which was built to make international payments faster and cheaper. The project has brought on major partners like Bank of America, PNC Bank, and Santander Bank, and it has emerged victorious from a legal battle with the US Securities and Exchange Commission (SEC), which alleged that XRP was an unregistered security.

XRP has been designed to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies. It provides settlement times within seconds and can handle 1,500 transactions per second. The XRP Ledger Consensus Protocol is a unique consensus protocol that is not energy-intensive like Proof-of-Work.

XRP has been one of the best-performing cryptocurrencies in recent weeks, with its price increasing by 13.63% year-on-year as of September 19, 2024. Its price as of that date was $0.58, with a market cap of $32.2 billion. XRP is now the 7th largest crypto by market cap.

XRP's strong ties with financial institutions and payment providers, as well as its victory over the SEC, have cleared the way for major banks to try out Ripple's payment network. This has led many analysts to believe that XRP is undervalued, with the potential for a 240% value surge by 2025.

While XRP relies on the adoption of traditional banks, its strong performance and potential for future growth make it a compelling investment opportunity.

Binance Coin: the official cryptocurrency of the world's largest crypto exchange, Binance

Binance Coin (BNB) is the native cryptocurrency of the Binance exchange, which was founded in 2017 by Changpeng Zhao. BNB has evolved from offering benefits to Binance users, such as lower fees and exclusive access to initial coin offerings, to powering its own ecosystem, the BNB Chain (formerly known as the Binance Smart Chain).

Advantages of Binance Coin

• High Speed and Low Cost: The BNB Chain boasts high speed and low fees, positioning it as a strong competitor to Ethereum.
• Benefits on the Binance Exchange Platform: Holding BNB provides advantages when using the Binance exchange, such as reduced fees.
• Wide Acceptance: BNB is accepted by over 350+ coins and can be traded on numerous platforms, including the Binance exchange, which caters to 169 million registered users in over 180 countries.
• Staking Opportunities: BNB can be staked alongside other Proof-of-Stake cryptocurrencies, allowing holders to support the BNB Chain network and earn rewards.

Disadvantages of Binance Coin

• Centralization: BNB is highly centralized as it is controlled and managed by Binance. This reduces the freedom available to its community and ties its success directly to the company.
• Regulatory and Legal Issues: Binance has faced regulatory scrutiny and legal challenges worldwide, including in the US, UK, Japan, Germany, and India. It has been banned or ordered to cease operations in some countries and has been the subject of lawsuits and fines.
• Security Breaches: In 2019, Binance experienced a large-scale security breach where hackers stole 7,000 Bitcoin worth around $40 million at the time. While the site reimbursed customers, this incident raises concerns about the security of user funds.

As the official cryptocurrency of the world's largest crypto exchange, Binance Coin offers advantages such as high speed, low fees, and benefits on the Binance platform. However, it is important to carefully consider the risks associated with its centralization and regulatory issues. Before investing, it is essential to conduct thorough research and assess your risk tolerance, as cryptocurrencies are highly volatile and subject to rapid changes in value.

Dogecoin: the original community-driven meme coin, widely accepted for payments

Dogecoin is one of the most popular tokens among investors. What started as a joke based on the "Doge" meme and a parody of Bitcoin has become an internet sensation with a passionate and active community. Dogecoin has gained mainstream adoption and continues to build its notoriety, thanks to support from major companies and high-profile enthusiasts like Elon Musk.

Dogecoin is widely accepted by merchants and can be used to buy a diverse range of products and services. These include gold and jewellery, cars, electronics, real estate, clothes and fashion, food, travel, plane tickets and stays, gaming and entertainment, and professional services. Dogecoin can also be used for donations to a variety of charitable causes and non-profit organisations.

There are several ways to pay with Dogecoin. You can pay directly to merchants that accept Dogecoin online and in-person, use P2P payments through your crypto wallet, buy gift cards to use at major companies, or use a crypto card or crypto debit card.

Dogecoin is also accepted by some big companies, including The Value Hosted, MrChrissy VPN, Elephant Chateau, Travala.com, Dallas Mavericks, airBaltic, and Tesla.

Dogecoin is a memecoin and does not have intrinsic value, except for a strong community. Investors should conduct thorough due diligence before deciding to invest in memecoins.

Frequently asked questions