Best Crypto to Buy Now: We Analyzed the Top Coins for 2024

We've analyzed the best crypto to buy in 2024. Learn how to evaluate crypto investments, where the market is going and what might trigger new ATHs.

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Expert verified
The best crypto to buy now
Last updated:
February 23, 2024

tl;dr

  • Bitcoin remains a must-have due to its long-term value and the significance of the 2024 Bitcoin halving.
  • Emerging cryptocurrencies like SUI and SEI show promise but still need to prove their worth.
  • Successful crypto investment hinges on comprehensive research, diversification, and staying informed on market trends.

Introduction

2024 is already shaping up to be a very exciting year for cryptocurrency investors, with many important events seemingly marking the end of the bear market. So what’s the best crypto to invest in right now?

We’ve analyzed the best cryptocurrencies you can buy to share some insight into the crypto market in 2024, how to evaluate crypto investments like a pro and which catalysts might trigger new all-time highs.


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Best Crypto to Buy Now in 2024

<figure class="block-table">
   <table>
       <thead>
           <tr>
               <th>Cryptocurrency</th>
               <th>Market Cap</th>
               <th>Volume</th>
               <th>Liquidity</th>
               <th>Tokenomics</th>
           </tr>
       </thead>
       <tbody>
           <tr>
               <td>Bitcoin BTC 👑</td>
               <td>Very High</td>
               <td>Very High</td>
               <td>Very High</td>
               <td>Medium</td>
           </tr>
           <tr>
               <td>Ethereum ETH</td>
               <td>Very High</td>
               <td>Very High</td>
               <td>Very High</td>
               <td>Great</td>
           </tr>
           <tr>
               <td>Solana SOL</td>
               <td>High</td>
               <td>High</td>
               <td>High</td>
               <td>Medium</td>
           </tr>
           <tr>
               <td>Avalanche AVAX</td>
               <td>High</td>
               <td>Medium</td>
               <td>Medium</td>
               <td>Great</td>
           </tr>
           <tr>
               <td>Chainlink LINK</td>
               <td>High</td>
               <td>Medium</td>
               <td>Medium</td>
               <td>Medium</td>
           </tr>
           <tr>
               <td>Cardano ADA</td>
               <td>High</td>
               <td>Medium</td>
               <td>Medium</td>
               <td>Okay</td>
           </tr>
          <tr>
               <td>Cosmos ATOM</td>
               <td>High</td>
               <td>Medium</td>
               <td>Medium</td>
               <td>Okay</td>
           </tr><tr>
               <td>Polygon MATIC</td>
               <td>High</td>
               <td>High</td>
               <td>High</td>
               <td>Great</td>
           </tr>
           <tr>
               <td>Binance Coin BNB</td>
               <td>High</td>
               <td>High</td>
               <td>High</td>
               <td>Medium</td>
           </tr>
           <tr>
               <td>Thorchain RUNE</td>
               <td>Medium</td>
               <td>Medium</td>
               <td>Medium</td>
               <td>Great</td>
           </tr>
       </tbody>
   </table>
   <figcaption>Promising Crypto Investments 2024</figcaption>
</figure>

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Top Cryptocurrencies in 2024

Bitcoin (BTC)

Should you buy Bitcoin in 2024?
Bitcoin is still the #1 cryptocurrency
  • Market Capitalization: Very High (less volatile, but less upside)
  • Trading Volume: Very High
  • Liquidity: Very High
  • Use Case/Adoption: Great (clear, widespread & big market)
  • Tokenomics: Medium (negligible inflation and ultimately capped supply)
  • Development Team: Great (large and proven)
  • Community Support: Great (massive community)
  • Security & Transparency: Best-in-Class
  • Performance: Great

Bitcoin continues to take the top spot on our list for a reason. It is considered to be the best crypto to buy right now by many and comes closest to being used as actual money. 

Bitcoin has endured and grown over the past 15 years, has a clear use case and benefits greatly from widespread adoption, being the first crypto asset to have an approved spot Bitcoin ETF. A must-have for every well-diversified portfolio.

Another hot topics for Bitcoin investors: The Bitcoin Halving 2024

With Bitcoin’s large market capitalization, the days of short-term 1000x gains on Bitcoin are likely over. So if you are looking for high risk and big gains, Bitcoin might be the wrong asset.

If, however, you're looking for more info on Bitcoin, be sure to check out our popular series of guides: What is Bitcoin?

Ethereum (ETH)

Should you buy ETH in 2024?
Ethereum laid the foundation for smart contracts and decentralized applications
  • Market Capitalization: Very High (less volatile, but less upside)
  • Trading Volume: Very High
  • Liquidity: Very High
  • Use Case/Adoption: Great (clear, widespread & big market)
  • Tokenomics: Great (deflationary and capped supply since the ethereum merge)
  • Development Team: Great (large and proven)
  • Community Support: Great (massive community)
  • Security & Transparency: Great (while the blockchain is secure and transparent, malicious smart contracts can be dangerous for ordinary users)
  • Performance: Great

Ethereum ranks second on our “best crypto” lists. It is a blockchain platform that enables developers to build decentralized applications (dApps) and execute smart contracts. 

Although expensive and slow, multiple layer 2 solutions are running on Ethereum to solve these limitations.

While Ethereum has proven itself in the past and is rightly the second-largest crypto asset by market capitalization, not everyone believes that it will stay in that position forever.

For good risk management, it should not be missing in a crypto investor's portfolio.

Solana (SOL)

Should you buy SOL in 2024?
Solana was built for high-speed & high-volume transactions
  • Market Capitalization: High
  • Trading Volume: High
  • Liquidity: High
  • Use Case/Adoption: Great (the high speed of Solana makes it the best solution for many use cases which led to strong adoption in a very short period of time)
  • Tokenomics: Medium (with an initial inflation rate of 8% scaling down to 1,5% the tokenomics are not favorable, but also not too bad)
  • Development Team: Medium (it remains to be seen if the big issues of Solanas unique consensus algorithm can be fixed in the future)
  • Community Support: Great
  • Security & Transparency: Bad (due to the high resource cost needed to run a Solana node, the control of the network lies in the hands of few actors, who have high power over it, as seen by multiple chain halts in the past)
  • Performance: Great

Solana is designed for high-speed and high-volume transactions. It provides a more scalable and efficient alternative to other blockchain networks, making it well-suited for applications that require fast and frequent transactions. There was a time when it was considered the best crypto for staking.

Solana suffered a lot due to its connection to Sam Bankman-Fried, the fraudulent founder of FTX and proponent of the blockchain.

If the project manages to rid itself of some remaining technical hurdles and deliver on their promise of great usability (e.g. with their own smartphone), I think SOL could rise back like a phoenix.

Risk and reward with Solana is probably higher than most other top projects, making it an alluring cryptocurrency to buy right now.

Avalanche (AVAX)

Should you buy AVAX in 2024?
Avalanche is a layer two solution utilizing subnets
  • Market Capitalization: High
  • Trading Volume: Medium
  • Liquidity: Medium
  • Use Case/Adoption: Good (with many gaming projects recently launching on Avalanche, the protocol has established itself as the go-to technology for gaming)
  • Tokenomics: Great (part of the fee token get burned, resulting in a deflationary asset)
  • Development Team: Great
  • Community Support: Medium
  • Security & Transparency: Great (over 100 independent nodes)
  • Performance: Great

Avalanche is another promising cryptocurrency on our list that provides a more scalable, interoperable, and decentralized infrastructure for building decentralized applications (dApps) and executing smart contracts, although it follows a different approach than other “layer two” solutions.

Avalanche offers so-called subnets, which are child chains of the Avalanche C-Chain. This enables it to easily launch a dedicated blockchain for various use cases, as we have seen with DeFi Kingdoms, one of the largest gaming projects in the web3 space.

Chainlink (LINK)

Should you buy LINK in 2024?
Bridging the real world and web3 through a decentralized oracle
  • Market Capitalization: High
  • Trading Volume: Medium
  • Liquidity: Medium
  • Use Case/Adoption: Great (Chainlink plays a crucial role in enabling smart contracts to interact securely with external data sources, APIs, and payment systems and is used by almost every major protocol)
  • Tokenomics: Medium (the fixed supply cap adds scarcity and a growing network adding demand will drive the price)
  • Development Team: Medium
  • Community Support: Medium
  • Security & Transparency: Good (multiple independent nodes are incentivized to maintain their reputation and excellent data quality with LINK token)
  • Performance: Great 

The Chainlink protocol is designed to enhance the security and decentralization of smart contracts on various blockchain platforms. It achieves this by providing reliable, tamper-proof data feeds, various off-chain computations, and end-to-end decentralization. 

The LINK token already made great gains in 2023, but as a backbone infrastructure for all of web3 we believe it is likely that an overall growth of the market in 2024 will impact Chainlink immensely, as the demand for their services should increase.

Cardano (ADA)

Should you buy ADA in 2024?
Cardano enables more efficient and sustainable smart contracts and dApps
  • Market Capitalization: High
  • Trading Volume: Medium
  • Liquidity: Medium
  • Use Case/Adoption: Great (clear, widespread & big market)
  • Tokenomics: Okay (burn mechanism to reduce supply is great, but the initial sale is still concentrating a huge amount of the total supply in the hands of founders and early investors, who could enact immense impact on the market)
  • Development Team: Great
  • Community Support: Great
  • Security & Transparency: Great (while the blockchain is secure and transparent, malicious smart contracts can be dangerous for ordinary users)
  • Performance: Great

Cardano is a blockchain platform that aims to provide a more efficient, sustainable, and interoperable platform for building and running decentralized applications and executing smart contracts.

It is designed to enable the development and execution of smart contracts and decentralized applications (dApps) while also addressing the issues of scalability, interoperability, and sustainability that have plagued other blockchain platforms.

Cardano is a very polarizing project with a strong community but also many adversaries. Their deep research approach to development makes them slower than other projects, but potentially more resilient.

Cosmos (ATOM)

Should you buy ATOM in 2024?
Cosmos Hub acts as the origin chain for the Cosmos ecosystem, which is a network of unlimited, independent blockchains based on the CosmosSDK.
  • Market Capitalization: High
  • Trading Volume: Medium
  • Liquidity: Medium
  • Use Case/Adoption: Medium (clear target market but still early in adoption)
  • Tokenomics: Okay (still inflationary, new utility for the token is being implemented, using Cosmos Hub token as a security layer for independent chains, who do not want to run their own validators)
  • Development Team: Great
  • Community Support: Medium
  • Security & Transparency: Great (the interchain transfers between CosmosSDK chains far surpass traditional bridges due to being completely decentralized)
  • Performance: Great

Cosmos is a blockchain which acts as a facilitator for the so-called “internet of blockchains.” It provides a way for different blockchain networks to communicate and work together, allowing for greater scalability, security, and functionality.

While development is still going strong, we will need to see great usability in the form of widely adopted use cases built on the many different blockchains of the ecosystem. 

Polygon (MATIC)

Should you buy MATIC in 2024?
Polygon is a “layer two” protocol enabling Ethereum dApps on the Polygon network
  • Market Capitalization: High
  • Trading Volume: High
  • Liquidity: High
  • Use Case/Adoption: Great (with the simple use case of offering a cheaper alternative to Ethereum, Polygon is seeing great adoption)
  • Tokenomics: Great (part of the fee token get burned, resulting in a deflationary asset)
  • Development Team: Great
  • Community Support: Great
  • Security & Transparency: Great (over 100 independent nodes)
  • Performance: Great

Polygon (formerly known as Matic Network) provides a more scalable and interoperable infrastructure for building decentralized applications (dApps).

It is designed as a “layer two” to the Ethereum network, allowing developers to build and deploy Ethereum-compatible dApps on the Polygon network.

Polygon is seeing great adoption by many projects due to its low-cost structure. While the business case of Polygon is in theory easy to copy, they managed to establish a great network effect resulting in steady growth.

Binance Coin (BNB)

Should you buy BNB in 2024?
Binance Coin is the largest “crypto exchange coin”
  • Market Capitalization: High
  • Trading Volume: High
  • Liquidity: High
  • Use Case/Adoption: Great (large user base and continuously new use cases introduced by Binance)
  • Tokenomics: Medium (burn mechanism to reduce supply is great, but the initial sale is still concentrating a huge amount of the total supply in the hands of founders and early investors, who could enact immense impact on the market)
  • Development Team: Great
  • Community Support: Great
  • Security & Transparency: Bad (sadly Binance Smart Chain, Binance Chain and Binance as an exchange itself are controlled by a small group of powerful entities, which pose a definite security risk)
  • Performance: Great

As the largest so-called “exchange coin,” BNB continues to develop in different directions, offering more and more use cases for the token (e.g. Cosmos chain, EVM chain and bonuses for Binance CEX users) and keeping its spot on our top 10 crypto list in 2024.

It’s still important to recognize that all of BNB’s features are built on a very centralized foundation and could crumble due to regulatory influence or fraudulent behavior of bad actors.

Ultimately an investment decision here needs to be somewhat based on trust.

Thorchain (RUNE)

Should you buy THOR in 2024?
Thorchain might revolutionize web3
  • Market Capitalization: Medium
  • Trading Volume: Medium
  • Liquidity: Medium
  • Use Case/Adoption: Medium (decentralized cross-chain swaps are an amazing and very much needed use case, but so far Thorchain sees little adoption)
  • Tokenomics: Great (validators are required to stake RUNE and every liquidity pool needs a mirrored amount of RUNE locked in it, resulting in high demand of the token with increasing adoption)
  • Development Team: Great
  • Community Support: Medium
  • Security & Transparency: Great (Thorchain aims to be the solution for the very many bridge hacks we have seen in the past when it comes to swapping assets between different blockchains)
  • Performance: Medium

Thorchain aims to solve one of the biggest problems in the decentralized finance space, the trustless trade of assets between independent blockchains.

While I think the vision is very promising, it will be hard to deliver and take lots of time and dedication.

However, if successful, Thorchain will revolutionize a big part of web3.

What’s The Next Big Cryptocurrency in 2024?

I think it is very likely that blockchains with a solid foundation and significant traction prior to this year are going to maintain their dominance in 2024. This is largely attributed to the surge in attention and the proliferation of applications being developed on these platforms. As narratives like DeFi, AI, NFTs and Gaming seem to lead the current market upswing, hot candidates for 2024include Solana, Avalanche and Ethereum Layer 2 Solutions like Polygon, Arbitrum, Immutable and Optimism.

However, there are some cryptocurrencies that have the potential to turn into the next big thing, such as SUI, SEI, Injective, Celestia, StarkNet, Dymension, and Ronin. These projects show great promise, but will still have to prove that they can attract enough developers to build on top of their technology.

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How We Evaluated the Best Crypto to Buy in 2024

Market Capitalization

Market capitalization is a factor for crypto investments
Bitcoin market capitalization – source: coinmarketcap.com

Market capitalization is the price per coin or token multiplied by the total amount of coins or tokens in circulation.

In crypto, we often need to differentiate between “Current Market Cap” and “Fully Diluted Market Cap”. The first includes all coins or tokens, which are available to date, while the second also includes all coins or tokens which are still locked, but will get released in the future through processes like crypto mining or crypto staking.

If there is a huge difference between those two values, it is very likely that the price will fall in the future, as more tokens (supply) meet the market (demand).

These numbers are probably THE most important factor in determining a viable crypto investment, and is often overlooked when comparing the price of a single unit of a token. 

Just because the price of some tokens is 0.00001€, it could still have a very high market capitalization if there are 100,000,000,000,000 of tokens in existence. 

This would lead to a market capitalization of 1 Trillion Euro, approximately the worth of Google (and it is probably not as valuable as Google, so expect the price to fall quickly once people realize that).

Trading Volume

Trading volume is another factor for evaluation of the best crypto investments
Bitcoin volume – source: coinmarketcap.com

A high and consistent trading volume on an asset is generally a very good sign. It means more and/or larger parties are interested, suggesting that the asset is likely listed across multiple cryptocurrency exchanges.

High trading volume means higher accessibility, making it easier for investors to buy or sell without significantly affecting its price.

Bitcoin, still considered the best crypto by many, reached its highest trading volume during its crash in November 2022, trading over 400 billion Dollar in a single day.

Liquidity

Bitcoin liquidity - source defilama.com

Liquidity and trading volume are related, as trading volume and price movements somewhat indicate liquidity. A high trading volume coupled with minimal price changes is generally indicative of high liquidity. This means that the asset can be bought or sold in significant amounts without causing a substantial impact on its price. 

However, exceptions can occur, sometimes deliberately, affecting this correlation.

Actual liquidity is a very important figure from the view of an investor, especially when it comes to decentralized exchanges.

Liquidity shows how easy you can exit your position, which is often a problem with newer coins or tokens.

If the liquidity is very low, let’s say less than 10x your investment, it will be impossible to sell that asset at current market price. So you should only invest in low-liquidity assets if you plan to hold that asset for a longer period of time and expect liquidity increase in the future.

Use cases and real-world adoption

When evaluating which crypto to buy, just like you would do with every other company and their product, there needs to be a real use case (or at least a future outlook for one) and paying customers which bring in profit.

When looking at a coin or token, it is important to ask yourself what that use case could be and if it is realistic that, at some point in time, the product will get there.

You can go even deeper into the analysis; consider estimating the scale of adoption needed—how many users need to engage with and pay for this product—to cover the operational costs. This is the juncture where the cryptocurrency transitions from being merely an innovative idea to a venture that creates tangible value.

Comparing this and the current market capitalization of a project might often lead to an interesting revelation.

Tokenomics

One of the most crucial questions to ask is: How does the token actually work?

Tokenomics describe the economics of a token and can quickly reveal a bad investment even if the product and team are exceptional.

Supply and demand dedicate the token price, so the balance between the two and how it could develop show the potential of an investment. Ask yourself:

  • What do I need the token for? Is there demand for the token if the product is successful?
  • Are new tokens generated in the future and if, how and when does that happen?
  • Are tokens locked for the team and early investors, and when will they unlock? (They probably bought at a lower price and might want to take profits once they can.)
  • Can tokens be burned (destroyed) and if so, what triggers this reduction of supply?

Development team

The technological backbone is of high importance in the age of digitalization. Ask yourself:

  • What do I know about the team behind a token-based project?
  • What is their background? Their skillset?
  • Do you think they can deliver on the promise?
  • Are they working as hard on the project as they should?

Many crypto development teams share insights into their GitHub profile, which shows the actual work they are doing.

If you don’t have the know-how to evaluate this yourself, it might make sense to talk to someone who can, before investing in a project.

Community support

Today’s community might turn into tomorrow’s users and clients of a product. It is important to factor this in and take a closer look at the community. Ask yourself these questions:

  • Is the community real? Or are the followers on Twitter/Discord etc. just empty accounts?
  • Are the people actually interested in the product or just speculators?

If the community consists of mostly speculators and people farming for quick rewards, free crypto, airdrops, whitelists etc. it is very likely that there is huge sell pressure, once the asset will be tradable.

Security and transparency

As we have seen repeatedly in the past, security and transparency can break a project and its value within seconds, if not executed well.

Interestingly, security breaches often stem from human errors—such as poorly written code or inadequate governance—rather than inherent flaws in the blockchain technology itself.

While security issues are not intentional in most cases, actual crypto scams are. Having enough transparency gives a better opportunity to detect fraudulent behavior early on. Ask yourself:

  • Who has critical access to the code? What is a worst case scenario?
  • Is there a single point of failure (e.g. one person holding the private keys to alter a smart contract)?
  • Is any information obscured, which should be transparent?

Performance

Past performance is a great indicator of what to expect in the future, although not always a guarantee of course. While projects with good performance might have a higher market capitalization than unproven ones, the risk might be considerably lower.

In times of a bull market, when investor optimism and market momentum are high, it can be strategic to identify projects with a solid track record that may not have fully capitalized on the current market euphoria. Even amidst widespread gains, some well-established projects may lag in valuation, not because of their fundamentals but due to market dynamics or investor focus on more speculative assets.

The emphasis here is on the resilience and innovation of the project team, especially those that continue to advance their product and maintain strong governance, regardless of market trends. A well-funded team that persistently delivers on their roadmap and demonstrates growth potential in a bull market suggests an asset with not just current appeal but also long-term viability.

Reasons for Crypto Growth in 2024

Will crypto grow in 2024?

This year has already provided a pivotal moment for the crypto ecosystem with the approval of multiple Bitcoin Spot ETFs. It seems to me that the traditional financial world is finally ready to enter this market in a regulated manner.

Combining this new source of capital inflow with greatly reduced inflation of new Bitcoin due to the Bitcoin Halving in April 2024, we might see a so-called “supply shock”, where overwhelming interest and demand cannot be satisfied by the market. 

A new Bitcoin all-time high (exceeding 69,000$) will definitely trigger tremendous media coverage, waking up a lot of people who thought that Bitcoin had already died.

These influences will likely not just affect the Bitcoin price, but ultimately ripple through the whole crypto market, as profits are bound to get distributed.

On top of that, we will be seeing a lot of high quality product releases from projects that were able to secure great financing in the last bull market of 2021 and continued building since. 

DeFi protocols have increased their usability and efficiency, attracting new capital, while projects in the gaming and collectibles space will drag in even non-crypto users without them even noticing that they are using a blockchain.

Another significant growth factor in 2024 which can drive all asset prices, is the trend reversal regarding interest rates. Lower interest rates usually push investors to look for other opportunities and risk-appetite will rise, marking crypto assets as an attractive investment vehicle.

As always, there are a lot of uncertain factors which cannot be predicted, but overall I believe that there are many positive developments which might trigger a new cycle of crypto growth in 2024.

Top Crypto Trends in 2024

Key crypto trends in 2024

While new trends in the crypto space appear every now and then, we have seen some of them establish and even lay the base for new trends to emerge on top. The most widespread trends of the past years and probably also in 2024 include:

Decentralized Finance (DeFi)

The goal of DeFi is to mirror the traditional financial system and all its instruments onto the blockchain, making it trustless and programmable.

What started in 2019 has become a massive infrastructure for all crypto users by now. While the usability is still lacking in most parts, DeFi protocols will continue to be the backbone of the future financial ecosystem. Popular DeFi use cases include:

  • Staking
  • Lending & Borrowing
  • Liquidity Mining
  • Stablecoins
  • Synthetic Assets

Non-Fungible Tokens (NFTs)

NFTs have become one of the most adopted assets in the last years, even introducing non-tech people into the crypto space, as there was finally something visible to look at and even “hold” in your own hands to show around.

But NFTs are actually not artwork, but rather a unit of account for a unique, non-fungible asset. This can reference to art, but also many other things, for example:

  • (Virtual) real-estate
  • Gaming characters & items
  • Collectibles
  • Music
  • Ticketing

Play to Earn (P2E)

The gaming sector has found interest in blockchain technology, which allows for new business models, where players can actually own their in-game assets and independent developers can build upon existing assets and communities.

Many influential players are already living off playing games all day by entertaining the masses on Twitch, Discord or Youtube. Web3 gaming takes this whole system to another level and allows everyone to participate in the success of a game economy. Popular on-chain games include:

  • Axie Infinity
  • Gods Unchained
  • DeFi Kingdoms
  • Alien Worlds

Blockchain & Artificial Intelligence

There have been many approaches on combining the benefits of AI with those of a distributed ledger, but so far we have not seen any breakthroughs. This doesn’t stop new projects from emerging and especially the hyped project of Worldcoin, founded by OpenAI CEO Sam Altman, has caused some uproar. It should not be considered an AI project though, as the actual purpose of Worldcoin is to differentiate humans from AI via an on-chain identity.

Other token-based projects around the topic of AI deal with:

  • AI Services Marketplace
  • Monetized Data Exchange
  • Decentralized Oracles
  • Distributed GPU Rendering and AI Computation

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Our Learnings from 2023

Cryptocurrencies or more accurately Crypto Assets – since none of them are actual currencies distributed by a central bank – have become a central topic for every investor over the years. These coins or tokens, which are based on distributed ledger technology (e.g. a blockchain) come in different forms, the most popular one being Bitcoin.

While Bitcoin, often referred to as “Digital Gold” or “Global Reserve Currency” is leading the pack in terms of adoption and market capitalization, there are now millions of assets ranging from token backed by real-world assets to crypto-native tokens used with utility and even digital artwork in the form of NFTs.

The beauty of this new asset class is that it is available to everyone with an internet connection. Blockchain enables the world to transfer value without the need to trust intermediaries and the calculation units for such transactions are what most refer to as coins or tokens.

In times of corruption, inflation and general loss of trust, this revolution is a natural process for humanity and has the potential to fix a lot of problems we are facing today. While technology is always neutral and can be used for good and bad alike, it would be irrational to look the other way. A big change is happening, whether we like it or not – but we are still early, and early adopters have a good chance to profit from it.

Early 2023, the crypto market still had to recover from the Terra Stablecoin collapse, the big scandal around the crypto exchange FTX and the cascading selloff. But these events also helped the sector mature and meaningful regulation developed. In the fourth quarter of last year we finally witnessed the end of an almost two-year long bear market, mostly driven by the rumors of the Bitcoin ETF, which was ultimately approved in 2024.

So what is the big takeaway from last year? Probably something in the lines of:

  • We saw a necessary cleanse in an overhyped and almost delusional market, promises of high interest and large investment multiples led to bad risk management
  • The technology does what it is meant to, and while it is often misused, the fundamentals stay strong
  • Crypto will continue to be a high-risk space, and we are not “too late”, but are already seeing great opportunities and new innovations
  • Regulation has arrived and with the approval of the first Bitcoin ETFs also opened the doors to investors who are restricted by heavy compliance

Tips for Investing in Cryptocurrencies

Do Your Own Research

We have shown you some crypto projects in this article and the factors we use to evaluate them. You can use this approach as a basic check looking for any red flags in a project. But don’t limit your research on the asset itself, it is also important to stay aware of any macroeconomic events, which could influence the whole market, like interest hikes, regulation etc.

Diversify Your Portfolio

“Never keep all your eggs in one basket” is definitely a saying you should keep in mind. Diversification and portfolio rebalancing have never hurt a good investor. Yes, you might miss out on some gains by not going all-in on a pumped coin, but you need to remember that cryptocurrencies can fall just as fast as they rose.

Track Your Portfolio

It is of utmost importance to have a clear overview of your assets at any time to track their performance, your initial investment and the distribution of your wealth.

Blockpit’s free crypto portfolio tracker offers an easy to use interface to track all your coins, tokens, NFTs and more in a useful dashboard. Simply import your transactions, or connect to an exchange or wallet using one of our many crypto integrations.

Invest Only What You Can Afford to Lose

This should be a no-brainer, but resist the temptation to go into debt for an investment, no matter how sure you are that it will succeed. There are too many factors that are out of your control and could result in a negative outcome against all odds.

Be Prepared for Volatility

Crypto is volatile, this is a fact. The market is just very small compared to the stock market or real estate. Volatility is not necessarily a bad thing, but something to keep in mind. A great way to reduce one’s exposure to volatility is by investing via Dollar-Cost-Averaging (DCA), meaning buying or selling smaller portions of an asset over an extended period of time.

Keep Up with Market Trends and News

There are many news sources out there and it is important to choose yours wisely. By following the right people on Twitter or subscribing to the right Subreddits, you can be on the forefront of information. But beware: Following the wrong people might get you pushed right into the hands of scammers. Once again: DYOR and don’t FOMO too hard!

Bonus: Don’t Forget About Crypto Taxes!

crypto gains = crypto taxes

Crypto is exciting. From trading, to staking and mining, and even more advanced use cases in the DeFi space, there are many ways to realize gains and losses, or even earn a passive crypto income. And where there is a profit, there are taxes.

While you can use crypto losses to offset your tax burdens, crypto gains and other income must be reported on your yearly tax declarations.

We’ve written many extensive crypto tax guides about the taxation of crypto in various jurisdictions, like the US, Germany, the UK, France, Austria, the Netherlands, Spain, or Belgium.

If you’re looking for an easy way to file your crypto tax report, Blockpit’s got you! Our easy to use crypto tax calculator analyzes all of your transactions, calculates the relevant gains and losses, and exports a compliant tax report for you to use in your yearly tax declaration.

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Frequently Asked Questions About the Best Cryptocurrencies in 2024

Should I invest in cryptocurrencies?

Yes, crypto has become a respected asset class that shouldn’t be missed in any serious investors portfolio. Be sure to read this guide to learn how to evaluate a potential crypto investment and how to identify scams.

Is now a good time to invest in crypto?

There are multiple factors, like the introduction of the first Bitcoin spot ETFs, the Bitcoin Halving, and the signs of a new bull market, that could indicate a good moment for crypto investments. 

Read this to learn more: Is now a good time to buy crypto?

Which is the most popular cryptocurrency?

Bitcoin is the undisputed number one cryptocurrency. Yet, most people who know of Bitcoin have also heard of Ethereum. It is probably wise to have a closer look at both of them.

Which is the best cryptocurrency for beginners?

Bitcoin and Ethereum are great cryptocurrencies to look at if you are just getting started investing in crypto. They are easier to understand and carry fewer risks than other coins or tokens out there.

Which is the best cryptocurrency to buy now for the long-term?

Picking the absolute "best" cryptocurrency for a long-term investment hinges on a careful blend of your personal risk appetite, investment strategy, and an eye on the ever-shifting crypto. Going with time-tested giants like Bitcoin or Ethereum might be a wise move, as their proven resilience and ongoing innovation offer a compelling narrative for continued growth.

How can I keep my crypto investments safe?

To safeguard your crypto investments, use reputable crypto wallets and exchanges, enable two-factor authentication, keep private keys offline in a hardware wallet, regularly update security settings, and educate yourself on phishing scams to avoid falling victim to fraudulent schemes.

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About the author

As one of the founders of Blockpit, Florian Wimmer has been deep into crypto assets since 2015 and has been dealing with the complexity of the tax treatment of crypto assets for several years.

Disclaimer: The information provided in this blog post is for general information purposes only. The information was completed to the best of our knowledge and does not claim either correctness or accuracy. For detailed information on crypto regulations, we recommend contacting a certified legal advisor in the respective country.