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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<td>Bitcoin BTC 👑</td>
<td>Binance Coin BNB</td>
<figcaption>Promising Crypto Investments 2024</figcaption>
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?
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 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 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.
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 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 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 (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.
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 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.
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.
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).
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 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.
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.
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:
The technological backbone is of high importance in the age of digitalization. Ask yourself:
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.
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:
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.
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:
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.
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.
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:
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:
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:
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:
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:
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 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.
“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.
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.
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.
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.
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!
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.
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.
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.
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?
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.
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.
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.
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.