When choosing which cryptocurrencies to invest in, it is important to consider both the upside potential and the risks involved. Some cryptocurrencies are much riskier than others, so it’s important to strike a balance between growth potential and safety
Perhaps the most compelling argument for investing in cryptocurrencies right now is that they are significantly discounted. This year, markets have taken a major hit as the Fed continues to wage its battle against inflation by raising interest rates. However, there are some cryptocurrencies that you can load up for long-term earnings. Most experts point to incredible gains from current levels for all cryptocurrencies to buy, discussed in the piece.
Cryptocurrencies to buy: Bitcoin (BTC-USD)
bitcoins (BTC-USD) has been the most popular and discussed cryptocurrency. While its price is often volatile, it has shown significant growth in recent years, making it a viable investment for many people. One of the main reasons for Bitcoin’s success is its underlying blockchain technology, which allows for secure and transparent transactions. Also, the limited supply of BTC gives it a scarcity value. As a result, some of the biggest names in the investment world have gravitated towards Bitcoin, which has made it the digital investment of choice for institutional investors.
While Bitcoin still dominates the market in terms of overall market cap, its lead has been dwindling in recent years. Numerous high-growth projects have sprung up, and all have seen explosive growth in the pandemic years. However, BTC remains the undisputed leader in terms of price and liquidity and is unlikely to lose its position as one of the best cryptocurrencies to buy any time soon.
Cryptocurrencies to buy: Ethereum (ETH-USD)
Ethereum (ETH-USD) is among the top two most valuable cryptocurrencies in terms of market capitalization. Certainly, the platform powers the biggest technologies in the blockchain space and is essentially a separate ecosystem with its own currency (Ether), governance model and developer community. It’s hard to overstate the importance of Ethereum in the DeFi and NFT space; without it, most of the projects currently underway would not exist.
Perhaps the biggest news for the platform this year was the completion of the long-awaited 2.0 update. As part of the “Merge”, it can effectively process transactions with 99.5% less power consumption. Furthermore, its co-founder Vitalik Buterin points to more future updates that could further strengthen the efficiency of the platform. Hence, ETH is a no-brainer for those seeking exposure to the crypto space.
Cryptocurrencies to buy: Solana (SOL-USD)
While Ethereum has dominated the DeFi space for years, a new challenger has emerged that promises to provide a better experience for end users. Solana (SOL-USD) is a layer 1 blockchain that boasts incredibly fast transaction speeds and low costs. Based on a unique proof-of-history validation mechanism, the platform can process thousands of transactions per second at a fraction of a cent each.
These benefits have already led to a significant amount of DeFi activity on Solana, and many investors believe the platform has the potential to dethrone Ethereum as the leading DeFi protocol. Additionally, its lead in the NFT space has grown at an incredible rate, with record trading activity this year. So, with its solid foundation, Solana is well positioned to become the leading platform in the DeFi and NFT space.
Cryptocurrencies to buy: Polkadot (DOT USD)
Polka dots (DOT USD) the unique architecture allows different blockchains to interact while maintaining the individuality of each chain. This allows for impeccable flexibility and efficiency for each blockchain. Furthermore, its parachains provide a high level of security for all linked chains. Therefore, the platform allows complex projects that span multiple blockchains to work efficiently. It is an extremely powerful and secure platform that can support a wide range of applications.
Polkadot was in the news recently because of Deutsch Telekom, the largest telecommunications company in Europe, which recently bought a ton of DOT. The move potentially marks a new era of mainstream adoption for cryptocurrencies. Also, at its current levels, DOT is as attractive as ever. As a result, Polkadot could have a bright future if adoption like this continues to gain traction.
The sandbox (SAND-USD)
The sandbox (SAND-USD) is a blockchain-based metaverse game. In its virtual world, players can create, sell, collect and purchase digital assets such as non-fungible tokens. Furthermore, it is powered by the Ethereum blockchain, ensuring that all assets are securely stored on the blockchain. Additionally, it is meant to be a fully immersive experience where users can explore the Metaverse and interact with other users in a variety of ways.
The SAND token witnessed tremendous growth late last year but has lost a lot of value since then. However, it remains an ambitious project that has the potential to change the way we think about online games and virtual worlds. SAND could be a fascinating play in the niche for investors looking to capitalize on the metaverse trend.
Binary currency (BNB-USD)
Binary currency (BNB-USD) is the leading cryptocurrency exchange by volume. The platform was processing $76 billion worth of transactions a day at one point last year. Perhaps the most intriguing element of BNB for investors is that it takes a chunk of BNB transactions and burns them at regular intervals. Effectively reduces the supply of BNB, increasing its value over time.
The real draw for BNB is Binance’s position as a behemoth in the crypto space. The higher the growth of the platform, the higher the transaction volumes. This actually leads to higher fees for the company. So, as Binance continues to grow its fee base, BNB will see healthy growth in its value. Thus, it presents itself as one of the rare long-term games in the cryptocurrency industry.
cardan (ADA-USD) is another leading cryptocurrency developed with a focus on sustainability and scalability. Its outstanding development process, which effectively targets network bottlenecks, sets it apart from the pack. Once the development process is complete, the network could potentially process a staggering 3 million transactions per second.
Cardano is built on a unique secure peer-reviewed blockchain protocol called Ouroboros. The protocol allows for relatively fast transactions at lower cost than its peers. Also, with new updates, Cardano keeps adding new features that have solidified its long-term positioning. With its new Alonzo update, the blockchain effectively supports smart contracts that allow developers to build decentralized applications (dApps) and explore the DeFi and NFT realms. As a result, over 1,000 dApps are running on its platform, with new ones being added every month.