The Best Crypto Coin To Invest In Now

With thousands of cryptocurrencies in existence, choosing the best one to invest in can be challenging.

Bitcoin is the world's oldest and largest cryptocurrency by market cap and is the only cryptocurrency officially recognised by major governments, including the US. It's also the most widely accepted for payments in the crypto world and, increasingly, in the real world.

Ethereum is the second-largest cryptocurrency and is the most widely used blockchain network for building new cryptos. It's also the platform of choice for non-fungible tokens (NFTs) and decentralised finance (DeFi).

Other cryptocurrencies to consider include XRP, Binance Coin, Cardano, Solana, Dogecoin, Tether, and Toncoin.

When deciding which cryptocurrency to invest in, it's important to consider factors such as market capitalisation, sector leadership, availability, and the team behind the project. It's also crucial to remember that investing in cryptocurrency is risky, and prices can be extremely volatile.

Bitcoin's performance and potential

Bitcoin is the original cryptocurrency, created in 2009 by Satoshi Nakamoto. It is the largest cryptocurrency by market cap, and the only one that’s officially recognised by major governments, including the US. It is even used as legal tender in countries like El Salvador.

Bitcoin's price has skyrocketed as it has become a household name. In May 2016, one bitcoin was worth about $500. As of August 2024, a single bitcoin was worth around $55,175, representing a growth of 10,935%.

Bitcoin's price is influenced by various factors, including institutional adoption, halving events, regulatory changes, and macroeconomic trends. The approval of BlackRock's Bitcoin exchange-traded fund (ETF) and the anticipated Bitcoin halving event in 2024 could serve as catalysts for price movements.

Bitcoin's performance in 2024 is expected to be positive, with a predicted price of $90,000 by the end of the year. Its price is also predicted to reach $117,285 by 2025, $240,120 by 2027, and $352,264 by 2028.

Bitcoin's security, global recognition, and long-term value make it a good investment option. However, it is important to note that Bitcoin's price is volatile and subject to significant changes.

• Bitcoin is the oldest and largest cryptocurrency by market cap.
• Its price has grown significantly over the years, with a current price of around $55,000, representing a growth of over 10,000% since 2016.
• Bitcoin's price is influenced by factors such as institutional adoption, halving events, regulatory changes, and macroeconomic trends.
• The approval of BlackRock's Bitcoin ETF and the anticipated halving event in 2024 are expected to positively impact its price.
• Bitcoin's performance in 2024 is predicted to be strong, with a year-end price target of $90,000.
• Its price is expected to continue growing in the coming years, reaching $117,285 by 2025, $240,120 by 2027, and $352,264 by 2028.
• Bitcoin's security, global recognition, and long-term value make it a good investment option.
• However, Bitcoin's price is volatile and subject to significant changes, so investors should be aware of the risks involved.

Ethereum's smart contracts and decentralised apps

Ethereums Smart Contracts and Decentralised Apps

Ethereum is a blockchain platform that facilitates the creation of decentralised applications (dApps) and self-executing contracts. It is the second-largest cryptocurrency by market capitalisation and the most widely used blockchain for dApp development.

A dApp is an application built on a decentralised network that combines a smart contract and a front-end user interface. Ethereum's smart contracts are essentially open APIs, meaning that dApps can include smart contracts written by other developers.

Smart contracts are a new way to build decentralised applications on a blockchain. They are short programs that can be deployed and run on a blockchain, executing code in response to transactions. They can also hold funds/tokens and state data on the blockchain.

Decentralised finance (DeFi) applications are a notable use case for Ethereum's smart contracts and dApps. These applications focus on building financial services using cryptocurrencies, offering services such as lending, borrowing, earning interest, and private payments without requiring personal data.

Ethereum's dApps and smart contracts have several benefits, including zero downtime, privacy, resistance to censorship, and complete data integrity. The code for smart contracts cannot be changed or updated once deployed, ensuring data integrity and resistance to censorship. Additionally, no real-world identity is needed to deploy or interact with a dApp, protecting user privacy.

However, there are also drawbacks to dApp development on Ethereum. The code and data published to the blockchain are challenging to modify, making maintenance and updates difficult. There is also a significant performance overhead, and scaling is a challenge. The high usage of the Ethereum network can lead to slow transaction speeds and high gas fees.

Despite these drawbacks, Ethereum remains the most popular blockchain for developers, with a wide range of applications and use cases. Its popularity among developers creates a flywheel effect, attracting more users and driving up the value of its native cryptocurrency, Ether (ETH).

In summary, Ethereum's smart contracts and decentralised applications have played a pivotal role in the growth of the platform and the broader cryptocurrency ecosystem. They have enabled innovative use cases, particularly in the realm of decentralised finance, while also offering benefits such as data integrity and privacy. However, challenges related to performance, scalability, and maintenance remain.

XRP's fast, low-cost transactions

XRP is the official crypto token of the Ripple payment network, which was built to make international payments faster and cheaper. XRP is a great choice for investors looking for fast, low-cost transactions.

XRP is one of the only cryptocurrencies determined not to be a security in the United States, and it has a foundation of regulatory clarity in several other countries. This means that it has been deemed to not be a security, which is important because securities are subject to strict regulatory requirements. XRP's regulatory clarity is a positive sign for investors.

XRP offers lightning-fast, cost-effective transactions that settle every 3-5 seconds at a fraction of a cent per transaction. This is significantly faster and cheaper than traditional methods of sending payments overseas, which typically take one to four business days and can be expensive.

XRP's speed and low cost are made possible by its unique Federated Consensus mechanism for validating transactions. This mechanism allows transactions to be confirmed on the XRP Ledger through a consensus protocol, in which designated independent servers called validators come to an agreement on the order and outcome of XRP transactions. All servers in the network process each transaction according to the same rules, and any transaction that follows the protocol is confirmed right away. There are currently over 150 validators on the ledger, and anyone can operate a validator.

XRP also has strong ties with financial institutions and payment providers, which ensures its longevity. For example, Ripple has brought on major partners like Bank of America, PNC Bank, and Santander Bank.

XRP is a great choice for investors looking for a cryptocurrency with fast, low-cost transactions. Its regulatory clarity, speed, low cost, and strong institutional support make it a compelling option.

Binance Coin's utility and performance

Binance Coin (BNB) is a cryptocurrency issued by Binance, the world's largest crypto exchange. It was introduced in July 2017 as a utility token for discounted trading fees on the Binance exchange, but its utility has since expanded to over 120 use cases.

Utility

Binance Coin can be used for:

• Paying transaction fees on Binance.com, Binance DEX, and Binance Chain
• Payments at Monetha and HTC
• Booking travel accommodations at TravelbyBit, Trip.io, and Travala.com
• Entertainment purposes, such as buying music and game rewards
• Paying for online services like BitTorrent, Canva, and Storm
• Financial services, such as taking out a loan at ETHLend or making investments at Moeda
• Purchasing goods and services at participating vendors
• Paying for goods and services on some of the latest smartphones from Samsung and HTC
• Trading for USD and other fiat and cryptocurrencies

Performance

Binance Coin has performed strongly since the resignation of former CEO, Changpeng Zhao, in 2023. As of August 16, 2024, BNB had a market cap of $76.9 billion, making it the fifth-largest cryptocurrency by market capitalization. Its price has increased by 125.65% in the last year, with most gains produced post-March 2024.

Binance Coin is a widely-used utility token with a large and expanding range of applications. Backed by the largest cryptocurrency exchange, Binance, it has seen remarkable price movement and is likely to see continued long-term growth.

Stablecoins' reduced volatility

Stablecoins Reduced Volatility

Stablecoins are cryptocurrencies that aim to reduce the volatility associated with popular cryptocurrencies like Bitcoin. They do this by pegging their market value to an external reference, usually a fiat currency like the US dollar, but they can also be pegged to the price of a commodity such as gold. Stablecoins are more useful than volatile cryptocurrencies as a medium of exchange.

Stablecoins are typically divided into two broad categories: asset-backed and algorithmic.

Asset-backed stablecoins

Asset-backed stablecoins are further divided into off-chain collateral stablecoins and on-chain collateral stablecoins. Off-chain collateral stablecoins are centralized models, whereas on-chain collateral stablecoins are decentralized models that solely use blockchains and smart contracts.

Fiat-collateralized stablecoins are a sub-type of asset-backed stablecoins. They maintain a reserve of a fiat currency (or a basket of multiple fiat currencies), such as the US dollar, as collateral. These reserves are maintained by independent custodians and are regularly audited. Tether (USDT) and TrueUSD (TUSD) are popular examples of fiat-collateralized stablecoins. As of late June 2024, Tether was the third-largest cryptocurrency by market capitalization, worth more than $112 billion.

Commodity-backed stablecoins are another sub-type of asset-backed stablecoins. They are pegged to the market value of commodities such as gold, silver, or oil. The commodities are typically held by third-party custodians or through investments in instruments that hold them. Tether Gold (XAUt), backed by gold reserves, is one of the most popular commodity-backed stablecoins.

Crypto-collateralized stablecoins are backed by other cryptocurrencies. Because the reserve cryptocurrency may also be prone to high volatility, such stablecoins are generally over-collateralized—that is, the value of the cryptocurrency held in reserves exceeds the value of the stablecoins issued. For example, MakerDAO's Dai (DAI) stablecoin is pegged to the US dollar but is backed by Ethereum (ETH) and other cryptocurrencies worth about 155% of the DAI stablecoin in circulation.

Algorithmic stablecoins

Algorithmic stablecoins may or may not hold reserve assets. They are defined by their use of algorithms (computer programs running preset formulas) to control the supply of the stablecoin, thus keeping its value stable.

Reducing volatility

Stablecoins do not entirely eliminate volatility, and their prices can fluctuate, especially in response to shocks in the cryptocurrency market and, more specifically, Bitcoin and Ethereum. However, stablecoins are still significantly less volatile than popular cryptocurrencies like Bitcoin, which experienced a 50% plunge between April and June 2021.

Stablecoins are also more liquid than traditional fiat currencies. They can be held in a crypto wallet or on an exchange, and they can be traded as quickly as any other crypto-to-crypto trade, thus reducing the time and cost associated with cashing out from crypto to fiat currency in a bank account.

Frequently asked questions