Cryptocurrencies are becoming increasingly popular among investors around the world. Thanks to inflation, the value of most currencies has fallen. Since there are a limited number of cryptocurrencies available, investing in cryptocurrencies provides protection against inflation.
Investing money in cryptocurrencies also allows you to diversify your portfolio away from traditional financial assets such as bonds and stocks. With so many cryptocurrencies being traded on the market every day, choosing the best one can be difficult. Below are the five best cryptocurrencies to invest in in 2024.
1. Bitcoin (BTC)
Bitcoin is highly volatile and speculative, but its increasing adoption and general acceptance make it a lucrative option for investors. According to the report, Bitcoin is expected to hit a new record of $88,000 later this year and settle to around $77,000 by the end of 2024, making it a worthwhile investment. Bitcoin is rare because its supply is limited. This means that cryptocurrencies will always have a fair price.
The price of Bitcoin can fluctuate significantly even over short periods of time, which can result in high returns. However, the risks are high and caution is required. To get the most out of your investment, buy Bitcoin when prices are low and the market is not busy, and wait for the value to rise before selling.
2. Solana (SOL)
Solana is an Ethereum-like blockchain that leverages a combination of historical proof-of-stake and delegated proof-of-stake to solve the scalability issues associated with Ethereum. Delegated proof-of-stake mechanisms add a layer of security to the network. Solana offers fast transaction speeds at a fraction of the price through a combination of delegated proof of stake and proof of history. It’s a great long-term investment opportunity. According to statistics, since the first week of December 2023, Solana’s total value has almost doubled from $671 million to $1.21 billion.
3. Cardano (ADA)
Cardano is a third generation decentralized proof-of-stake blockchain focused on improving the shortcomings of previous cryptos such as Ethereum and Bitcoin. This blockchain also focuses on interoperability and scalability, i.e. the ability to connect to other blockchains. Cardano allows developers to develop smart contracts, making it more competitive than other cryptocurrencies. Additionally, Cardano separates the computation and payment layers, resulting in lower transaction costs for payments.
Cardano tokens are primarily used for securing the network and staking. Nevertheless, tokens can be used for purchase, investment purposes, or for transactions via Cardano smart contracts.
4. Ethereum (ETH)
Ethereum is one of the largest cryptocurrencies by market capitalization. ETH is not only a store of value and medium of exchange, but also a decentralized computing platform based on blockchain technology. Ethereum is more than just a digital currency. Process other financial transactions and execute smart contracts. It has a significant and engaged global community and is committed to helping users leave third-party intermediaries behind.
5. Ripple (XRP)
XRP is not a general purpose token. It focuses on developing payment solutions for banks and other financial institutions. This addresses some issues with competing systems, such as his SWIFT for international payments. With XRP, these payments can be completed in seconds instead of days or hours. While other digital assets such as Ethereum and Bitcoin aim to be decentralized, XRP is fully owned by Ripple.
