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The best cryptocurrencies to buy now
The cryptocurrency market is heating up, with the overall market capitalization rising 12% over the past month. So what is the best cryptocurrency to buy right now?
The answer, as always, is that it depends. Your risk appetite, goals and the balance of your overall portfolio will likely influence your choice. However, we can show you some interesting options!
How to choose the best cryptocurrency to buy now
Here are some common factors we look at when evaluating the best altcoins to buy now.
- Market capitalization
- Recent performance
- Technological advances
- Upcoming catalysts
- Community support
It is not simply a matter of choosing projects with higher market capitalizations or with excellent recent price performance. Sometimes an investor prefers to find a small-cap project to invest in, although these carry more risk. Some investors may also prefer cryptocurrencies with poor recent price performance due to the perception that they may be undervalued.
The best cryptocurrencies to buy now
Let’s kick things off and take a look at our list of cryptocurrencies!
1. Ethereum (ETH)
Ethereum will very often be on the list of best cryptocurrencies to invest in, regardless of who creates them. Ethereum is the leading blockchain network powering the thriving Web3 and DeFi industries, with countless potential use cases.
Potential price catalyst
- ETF approval: The recent SEC approval of Ethereum ETFs is expected to lead to significant capital inflows.
- Scalability updates: Upcoming Layer 2 solutions could increase the number of transactions Ethereum can handle while reducing fees.
Should I Buy Ethereum Now?
With increasing institutional investment and continued technological improvements, Ethereum could be poised for significant growth. Its continuous updates and potential price increases from ETF trading make it an attractive candidate for interested investors, while issues such as lack of regulatory compliance or a broader market downturn could negatively impact the price.
2. Bitcoin (BTC)
Needing no introduction, Bitcoin is the world’s first cryptocurrency and remains the largest with a massive market capitalization of $1.3 trillion, dominating the market.
Potential price catalyst
- Bitcoin halving: Recent halvings have historically coincided with price increases.
- ETF approval: Like Ethereum, Bitcoin ETFs have recently been approved, attracting more institutional investment.
Should I Buy Bitcoin Now?
Bitcoin is an interesting prospect. It was literally the best-performing asset class in the world in 2024 and the year before, outperforming both stocks and commodities. For this reason, an investment in BTC can be a double-edged sword.
It is attractive due to the impressive price history, but the fact that BTC is near an all-time high may discourage some investors, with many preferring to buy at what they believe is a lower point in the future price trajectory.
3. Binance Coin (BNB)
BNB is the native token of Binance Exchange and Binance Smart Chain, which offers trading fee discounts to users and therefore provides a lot of practical utility.
Potential price catalyst
- DeFi Integration: BNB’s integration with Binance Smart Chain supports numerous DeFi projects.
- Benefits for the user: BNB holders benefit from reduced trading fees and exclusive token sales.
Should I Buy Binance Coin Now?
Binance Coin saw a fairly high price fluctuation of 27% last week, with high trading volume and volatility offering plenty of swing trading opportunities for experienced investors.
Of course, the coin is also held by long-term investors. BNB has a very valuable use case, but it is also vulnerable to the successes and failures of the Binance exchange which was recently involved in a money laundry scandal.
4. Solana (G)
No list would be complete without at least one contender to the Ethereum throne, and here we go with Solana. The network allows for fast transactions and low fees, giving it a potential advantage over Ethereum should future updates to the Ethereum network prove disappointing.
Regardless, Solana is building its own community and projects, with a growing number of developers building apps on the platform.
Potential price catalyst
- Cross-chain integration: Integration with LayerZero for cross-chain transfers improves its functionality.
- Stablecoin launch: The launch of PayPal’s stablecoin on Solana highlights its growing ecosystem.
Should I buy Solana now?
Solana has remained relatively stable in terms of price over the past month, up 10% in 30 days and down 1% in the past week as the price continues to bounce off established support and resistance levels.
5. Polka dot (DOT)
Polkadot is a great project working on something crucial to the success of the blockchain industry, viz interoperability. The goal of the project is to enable multiple blockchains to work together and transfer information and funds between each other with full compatibility.
Potential price catalyst
- Parachain Technology: Unique technology that supports scalability and interoperability.
- Developer community: Strong developer support ensures continuous innovation.
Should I buy Polkadot now?
Polkadot prices have fallen nearly 8% over the past week and is now trading at $6.57 and struggling to stay above crucial resistance levels at $6.40. This presents an interesting case for traders looking to buy potentially undervalued projects, although, of course, timing the bottom is no easy feat.
Final thoughts on the best cryptocurrencies to buy now
Ethereum and Bitcoin remain top picks for many analysts across the industry due to the popularity and functionality of these popular cryptocurrencies. However, Solana, Binance Coin, and Polkadot are also interesting contenders at the moment due to a combination of unique price action and possible price catalysts exhibited by each coin.
Ultimately, risk management is key. When choosing the best cryptocurrency to buy today, investors typically set specific price targets and stick to a strict set of rules regarding profit-loss ratio and other parameters. Cryptocurrency trading best practices.
Disclosure: This article does not constitute investment advice. The contents and materials on this page are for educational purposes only.