The Best Cryptocurrency Investment Options For You

Cryptocurrencies are digital assets that investors can buy and trade on crypto exchanges. While there are thousands of cryptocurrencies, each with different dynamics, Bitcoin and Ethereum are the two best cryptocurrencies to buy now.

Bitcoin is the original cryptocurrency, launched in 2009, and is the most popular and valuable cryptocurrency. It is fully decentralized, and its blockchain-based, distributed ledger system revolutionized digital security.

Ethereum, launched in 2015, is the second most valuable cryptocurrency. It was one of the first altcoins and is the most valuable crypto besides Bitcoin. Its blockchain was the first to introduce smart contracts, and it is home to more than 4,400 decentralized apps and developer tools.

Other cryptocurrencies worth considering include Toncoin, Binance Coin, Solana, Dogecoin, and Cardano.

Bitcoin: the original cryptocurrency, with the largest market cap and most mainstream acceptance

Bitcoin is the original cryptocurrency, created in 2009 by Satoshi Nakamoto. It is also the largest cryptocurrency by market capitalization, with a market cap of $1.17 trillion as of September 17, 2024, up from $521.93 billion a year prior. This gives Bitcoin a market dominance of 57.05% as of September 19, 2024.

Bitcoin's price has skyrocketed as it has become a household name. In May 2016, one bitcoin cost around $500. As of September 10, 2024, a single bitcoin's price was around $56,902, representing growth of 11,280%.

Bitcoin is unique compared to traditional currencies because it is decentralized, with no single institution or bank controlling the bitcoin network. It is also easy to set up an account, and it is completely transparent.

Bitcoin's widespread adoption and large market cap make it an attractive investment option for those looking to add cryptocurrency to their portfolios. However, it's important to remember that the prices of cryptocurrencies like Bitcoin are highly volatile and subject to rapid change.

Ethereum: the most valuable crypto after Bitcoin, with faster transaction speeds

Ethereum is a community-run technology that powers the cryptocurrency Ether (ETH) and thousands of decentralised applications. It is a blockchain-based software platform that can be used for sending and receiving value globally with its native cryptocurrency, Ether, without any third-party interference.

Ethereum is the second-largest cryptocurrency by market capitalisation, after Bitcoin. It has a market cap of $290.82 billion, with each Ether valued at around $2,416.75 as of September 14, 2024.

Ethereum was first proposed in 2013 by Russian-Canadian computer programmer Vitalik Buterin. It was designed to expand the utility of cryptocurrencies by allowing developers to create their own special applications, known as "decentralised applications" or dapps. These dapps are self-executing, using code-based programs called smart contracts, which are stored on the Ethereum blockchain.

Ethereum has faster transaction speeds than Bitcoin, with an average block creation time of 13-15 seconds, as compared to Bitcoin's 10 minutes.

The Benefits of Ethereum

Ethereum's decentralised finance (DeFi) system is always operational and free from discrimination. With just an internet connection, users can send, receive, borrow, earn interest, and even stream funds anywhere in the world.

Ethereum isn't just for digital money. It allows for the tokenisation of assets, enabling users to represent, trade, and put to use non-fungible tokens (NFTs). For example, users can tokenise their art and automatically receive royalties every time it is resold.

The Future of Ethereum

In 2022, Ethereum transitioned from proof-of-work to proof-of-stake, branding it as "The Merge". This reduced ETH issuance by 90%, potentially making Ethereum deflationary.

The next major upgrade is the Shanghai Upgrade, which will allow ETH stakers to unstake their ETH and withdraw ETH rewards. This is expected to happen sometime in March 2023.

With its faster transaction speeds, robust decentralised applications, and exciting future upgrades, Ethereum is a valuable cryptocurrency to invest in.

Tether: a stablecoin with a value supposedly pegged to the US dollar

Tether (USDT) is a stablecoin, a type of cryptocurrency that aims to reduce price volatility by pegging its market value to a currency or another external reference point. Tether's price is tied to the US dollar, with the developers claiming to hold one US dollar for every USDT in circulation. This 1:1 ratio means that one USDT should always be worth $1.

Tether was launched in 2014 as a blockchain-enabled platform that facilitates the use of fiat currencies in a digital manner. It allows users to transact with traditional currencies across the blockchain without the volatility and complexity associated with digital currencies. Tether is built on several leading blockchains, including Ethereum, Bitcoin Cash, and Tron.

Tether has faced controversies over the years regarding the validity of its claims about its USD reserves. There have been concerns about whether Tether holds enough assets to back up its peg to the US dollar. In May 2022, Tether's value dropped below $1, and in September 2024, it had a year-over-year return of 0%, indicating a lack of growth.

Despite these controversies, Tether remains one of the largest cryptocurrencies by market capitalization. As of July 22, 2023, Tether was the third-largest cryptocurrency by market capitalization, with a market cap of $83.8 billion and a per-token value of $1.00. It is widely traded on many cryptocurrency exchanges, especially those where fiat-to-crypto trading pairs are unavailable.

Binance Coin: a cryptocurrency that can be used to trade and pay fees on the Binance exchange

Binance Coin (BNB) is a utility cryptocurrency with a range of applications. Its primary function is as a payment method for the fees associated with trading on the Binance Exchange, one of the largest crypto exchanges in the world. It offers discounted trading fees for users who hold BNB.

Binance Coin was initially launched as an ERC-20 token on the Ethereum blockchain, but it has since become the blockchain that the Binance decentralised exchange operates on. It uses a proof-of-stake consensus model.

Binance Coin has expanded beyond its initial use case, and can now be used for trading, payment processing, and booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

In 2017, the price of BNB was $0.10. By late September 2024, its price had risen to around $520, representing an increase of over 500,000%. As of July 22, 2023, Binance Coin had a market capitalisation of $37.3 billion, with one BNB valued at around $242.55.

Solana: a blockchain designed to support decentralised applications and smart contracts

Solana is a blockchain platform designed to support decentralised applications (dApps) and smart contracts. It was founded in 2017 and officially launched in March 2020 by the Solana Foundation, with headquarters in Geneva, Switzerland.

Solana combines the Proof-of-History (PoH) consensus mechanism with the more common Proof-of-Stake (PoS) mechanism. This ensures that Solana achieves consensus more quickly, while reducing the workload and solving the blockchain trilemma, where developers have to balance decentralisation, security, and scalability.

PoH was developed by Anatoly Yakovenko, who is the most important person behind Solana. He teamed up with his Qualcomm colleague Greg Fitzgerald, and they founded a project called Solana Labs. The Solana protocol and SOL token were released to the public in 2020.

Solana is known for its incredibly short processing times, with lightning-fast transaction and smart contract execution. This has attracted a lot of institutional interest.

The Solana protocol is intended to serve both small-time users and enterprise customers. One of Solana’s main promises to customers is that they will not be surprised by increased fees and taxes. The protocol is designed to have low transaction costs while still guaranteeing scalability and fast processing.

The SOL token is the native token of the Solana blockchain. It can be used to pay for transaction fees and to secure the network through staking.

Solana has faced recurring network outages, which have impaired its price and aspirations. In response, Solana's team has implemented various upgrades, such as a new data transfer protocol called QUIC, and local fee markets to send priority fees to validators.

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