When choosing which cryptocurrencies to invest in, it is important to consider both the potential upside and the risks involved. Some cryptocurrencies are riskier than others, so it is important to find a balance between growth potential and security
Perhaps the most compelling argument for investing in cryptocurrencies at this time is that they are significantly discounted. This year, the markets have taken a massive hit as the Federal Reserve continues to fight its battle against inflation by raising interest rates. However, there are a few cryptocurrencies that you can load up for long-term gains. Most experts point to incredible gains from the current levels of all cryptocurrencies to buy, which are discussed in the article.
Cryptocurrencies to buy: Bitcoin (BTC-USD)
bitcoin (BTC-USD) was the most popular and talked about cryptocurrency. While its price can often fluctuate, it has shown significant growth over the past few years and has become a viable investment for many people. One of the main reasons for the success of Bitcoin is the underlying blockchain technology, which allows for secure and transparent transactions. Moreover, the limited supply of BTC gives it a scarcity value. Thus, some of the biggest names in the investment world have gravitated towards Bitcoin, making it the digital investment of choice for institutional investors.
Although Bitcoin still dominates the market in terms of total market capitalization, its lead has been waning in recent years. Many high-growth projects sprang up and all experienced explosive growth in the pandemic years. However, BTC remains the clear leader in price and liquidity and is unlikely to lose its position as one of the best cryptocurrencies to buy anytime soon.
Cryptocurrency to buy: Ethereum (ETH-USD)
Ethereum (ETH-USD) is among the top two most valuable digital currencies by market capitalization. Certainly, the platform powers the largest 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 running would not exist.
Perhaps the biggest news for the platform this year is the completion of the highly anticipated Update 2.0. As part of the ‘consolidation’, it can process transactions efficiently with 99.5% less power usage. Moreover, co-founder Vitalik Buterin points to more future updates that can boost 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 competitor has emerged that promises to offer a better experience for end users. Solana (SOL-USD) is a layer-one blockchain that features ultra-fast transaction speeds and low costs. Based on a unique proof-of-date verification mechanism, the platform can process thousands of transactions per second at a fraction of a penny each.
These advantages have already generated 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. Moreover, its leadership in the NFT space has grown at an astonishing pace, with record trading activity this year. Hence, with its strong foundation, Solana is well positioned to become a leading platform in the DeFi and NFT space.
Cryptocurrencies to buy: Polkadot (DOT-USD)
Polka dot (DOT-USDThe unique structure of different blockchains allows them to interact while maintaining the privacy of each chain. This allows for the flexibility and impeccable efficiency of each blockchain. In addition, parachains provide a high level of security for all connected chains. Hence, the platform allows complex projects that span multiple blockchains to run efficiently. It is a very powerful and secure platform that can support a wide range of applications.
Polkadot has been in the news lately because German Telekom, Europe’s largest telecom company, which recently bought a ton of DOT. This move potentially signals a new era of mainstream adoption of cryptocurrencies. Moreover, short-term treatment at its current levels is more attractive than ever. As a result, Polkadot could have a bright future if adoption like this continues.
sand (Sand – a dollar)
sand (Sand – a dollar) is a blockchain-based metaverse game. In his virtual world, players can create, sell, collect and buy digital assets as non-fungible tokens. Moreover, it is powered by the Ethereum blockchain, which ensures that all assets are securely stored on the blockchain. Also, it is meant to be a fully immersive experience where users can explore the Metaverse and interact with other users in different ways.
The SAND token experienced explosive growth late last year, but since then, it has lost a lot of value. 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 great niche game for investors looking to take advantage of the metaverse trend.
Binance coin (BNB-USD)
Binance coin (BNB-USD) is the highest crypto exchange by volume. The platform was processing $76 billion worth of transactions per day at one time last year. Perhaps the most interesting component of BNB for investors is that it takes a portion of BNB transactions and burns them at regular intervals. It effectively reduces the supply of BNB, increasing its value over time.
The real advantage of BNB is Binance’s position as a juggernaut in the crypto space. The larger the platform, the higher the transaction volume. That actually leads to more fees for the company. Thus, as Binance continues to expand its fee base, BNB will see a healthy growth in its value. Therefore, it presents itself as one of the rare long-term plays in the cryptocurrency industry.
Cardano (ADA-USD) is another leading cryptocurrency that was developed with a focus on sustainability and scalability. Its massive development process, which effectively targets network bottlenecks, separates it from the pack. Once the development process is complete, the network can process a mind-boggling 3 million transactions per second.
Cardano is built on a unique peer-reviewed secure blockchain protocol called Ouroboros. The protocol allows for relatively fast transactions with lower costs than its counterparts. Moreover, with new updates, Cardano continues to add new features that have strengthened its position in the long run. With Alonzo’s new upgrade, the blockchain effectively supports smart contracts that allow developers to create decentralized applications (dApps) and explore DeFi and NFT domains. Thus, more than 1,000 dApps are running on its platform, with new additions every month.