Image by WorldSpectrum on Pixabay
Putting your money in crypto also provides portfolio diversification from conventional financial assets like bonds and stocks. Considering the many cryptos that trade on the market daily, selecting the best can be daunting. Outlined below are the top five cryptocurrencies to invest in 2024.
1. Bitcoin (BTC)
Although highly volatile and speculative, Bitcoin’s rising adoption and mainstream acceptance have made it a favorable option for investors. A report suggests that Bitcoin is expected to get to a new record of $88,000 throughout the year before settling at around $77,000 at the end of 2024, making it a worthy investment to consider. Bitcoin has a limited supply, which makes it scarce. This implies that the crypto will always hold reasonable prices.
Bitcoin prices can also fluctuate significantly within short periods, creating a possibility for high returns. However, the risk is also high and requires one to be careful. To make the most of your investment, buy Bitcoin when the market is less busy because prices are lower and wait for its value to rise before selling.
2. Solana (SOL)
Solana is a blockchain that resembles Ethereum and utilizes proof of history combined with delegated proof of stake to resolve the scalability issues associated with Ethereum. The delegated proof of stake mechanism adds a security layer to the network. Solana offers fast transaction speeds at a portion of the price thanks to its blend of delegated proof of stake and proof of history. It’s a great long-term investment option, with statistics indicating that Solana’s total value locked almost doubled from the first week of December 2023 from $671 million to $1.21 billion.
3. Cardano (ADA)
Cardano is a third-generation, decentralized proof-of-stake blockchain whose focus is improving on the flaws of earlier cryptos, such as Ethereum and Bitcoin. This blockchain also concentrates on interoperability and scalability, which is the capacity to connect with other blockchains. Cardano lets developers develop smart contracts, making it more competitive than other cryptos. In addition, Cardano’s dissociation of the computation and settlement layers leads to lower transaction costs for payments.
Cardano’s token is primarily utilized for securing the network and staking. Nevertheless, you can use the token to make purchases, for investment purposes, or to transact on Cardano’s smart contracts.
4. Ethereum (ETH)
Ethereum is among the largest cryptos by market capitalization. Besides being a store of value and medium of exchange, ETH is a decentralized computing platform developed on blockchain technology. Ethereum isn’t just a digital currency. It processes other financial transactions and executes smart contracts. It has a significant, committed global community and promises to allow users to leave third-party intermediaries behind.
5. Ripple (XRP)
XRP isn’t a general-purpose token. Its focus is on developing payment solutions for financial institutions like banks. It addresses multiple concerns with competing systems, such as SWIFT for global settlements. XRP allows these settlements to be completed within seconds instead of days or several hours. While other digital assets such as Ethereum and Bitcoin endeavor for decentralization, XRP is fully owned by Ripple.
Endnote
Investors are now turning to cryptos to diversify their portfolios. Familiarize yourself with the top cryptocurrencies to invest in 2024.
