Exploring the Top Cryptocurrencies for 2024: Where to Invest?

A cryptocurrency is a digital currency that uses cryptography for security regarding circulation and generation in the modern-day context. In this case, using encryption technologies for work security leaves cryptocurrencies working with the essence of currency like a virtual accounting system.

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.

Top cryptocurrencies to invest in 2024

Bitcoin (BTC)

Bitcoin is still on our list because it is often considered the best crypto to buy right now, considering that it comes the closest to being used as actual money. It has recently continued and grown in the past 15 years, always enjoying a clear use case but benefitting greatly from its widespread spread as it is the first to receive an approved spot Bitcoin ETF. It has to be in each well-diversified portfolio.

With a market capitalization of such a big size, the days of getting 1000x or more out of bitcoin are over, probably in the short term. In that case, if one is looking for high risk and big gains, it might turn out that Bitcoin is the wrong asset.

Ethereum (ETH)

This is a platform for developing blockchain-based, decentralized applications (dApps) accompanied by Smart Contracts execution capabilities. Many work simultaneously with each other to provide scalability solutions to Ethereum, but it’s very costly and slow.

On the other hand, while Ethereum has existed in the past, and appropriately so, given that it is the second-largest crypto asset by market capitalization, it is unclear whether this will continue indefinitely. It should be included in a crypto investor’s portfolio for effective risk management.

Solana (SOL)

Solana was built to handle high-speed and high-volume transactions, outdoing other competitive blockchain networks. Once, it was considered the best crypto for staking. Solana has suffered being attached to Sam Bankman-Fried, a fraud founder of FTX and blockchain that’s conning.

If the project does overcome all the remaining technical hurdles and delivers great usability (for example, their smartphone), then SOL could rise back like a phoenix from the ashes. This suggests that Solana’s risk and return are higher than most other top projects, making it an appealing cryptocurrency to purchase right now.

Avalanche (AVAX)

Avalanche is another promising cryptocurrency in our list that provides for a much more scalable, interoperable, and decentralized infrastructure for the creation of decentralized applications (dApps) and execution of smart contracts while following ways, unlike other “layer two” solutions.

This means that Avalanche can offer “subnets” to provide child chains of the Avalanche C-Chain. It is possible to quickly spin up a bespoke blockchain for various use cases—from DeFi Kingdoms, the largest and most robust project in the Web3 universe, to games like F1 Delta Time, The Sandbox, and others.

Chainlink (LINK)

The Chainlink protocol aims to enhance the robustness and decentralization of smart contracts across any blockchain. They come with tamper-proof data feeds, diversified off-chain computations, and end-to-end security for sources that involve a blockchain network.

The LINK token will already see giant progress by 2023. If one considers the latter as a backbone infrastructure for all of web3, then with the overall growth of the market in 2024, impacts will be immense, as demands shall rise for their services.

Cardano (ADA)

Cardano is a blockchain platform that provides a more efficient, sustainable, and compatible infrastructure for creating and executing decentralized applications and smart contracts. It aims to excel in executing smart contracts and decentralized applications (dApps) while addressing other challenges, such as scaling, interoperability, and blockchain sustainability.

Cardano is a polar project with a strong community but many adversaries. Their deep-research approach to its development makes it slower than other projects but, at the same time, potentially more resilient.

What’s The Next Big Cryptocurrency in 2024?

There’s a very high chance that the strongest and most widely applied blockchains before this year will be among the leaders in the market in 2024. The main reasons for this are the increasing attention and number of applications being built on the platform.

And such a project as DeFi may explain where narratives dominate from the current situation, with things like AI, NFTs, and Gaming leading the market; Solana and Avalanche are getting hot, for that matter, in Ethereum Layer 2 solutions with things like Polygon, Arbitrum, Immutable, and Optimism.

However, there are some cryptos with the potential to be watched over and become the next big thing. These are SUI, SEI, Injective, Celestia, StarkNet, Dymension, Ronin. These projects are very promising, but they must demonstrate that they can support development activity to make their technologies work.

How We Selected the Top Cryptocurrencies to Buy in 2024

Market Capitalization

Market capitalization is the price per coin or token multiplied by the total number of coins or tokens in circulation. In crypto, we often must differentiate between ‘Current Market Cap’ and ‘Fully Diluted Market Cap.’ Current Market Cap refers to the sum of all current coins or tokens.

If the difference between these two values is large, then the price will most likely go down in the future due to the increase of tokens (supply) matching the market (demand). When comparing the price of a single token unit, investors likely overlook the single most important number behind choosing a viable crypto investment.

Although the price of some tokens may be 0.00001€, it could still have a very high market capitalization when there are 100,000,000,000,000 tokens in existence. With those numbers, this leads to a market capitalization of 1 Trillion Euros, roughly the equivalent of Google (and probably just as not worth it.).

Trading Volume

A high and consistent trading volume is a very good sign of an asset since more interested parties are present in larger amounts. This likelihood will likely prompt various cryptocurrency exchanges to list the asset.

Greater trading volume would provide more access to a particular asset so an investor can buy or sell without affecting its price. Bitcoin, considered at the time by many to be the best crypto, reached its highest trading volume in November 2022. It was around 400 billion dollars in a single day.

Liquidity

Overall, trading volume can be related to liquidity as price movement, to some extent, determines liquidity; therefore, high trading volumes with minimum price movements would signal high liquidity. This suggests that traders could easily trade the asset without affecting its price. However, in some cases, this correlation breaks down, and exceptions occur due to manipulation.

Real liquidity is quite an important figure from the view of an investor, especially if we mean decentralized exchanges. They demonstrate what it will be like to exit a position that is quite difficult to manage with coins or tokens new to the markets.

But when liquidity is very low, let’s say 10 times less, it does suggest that it will be impossible for you to sell that asset at the current market price. Thus, you only have to invest in low-liquidity assets if you plan to hold onto that asset for a long time and gain from increased liquidity sometime in the future.

Use cases & real-world adoption

In assessing which crypto to buy into, much like with any other company and its product, there should be a real use case (or at least the perspective of such in the future) and paying customers drawing in profit. When considering a currency or token, it is critical to consider the potential use case and whether it is viable at some point in the future.

You can go far with your analysis; estimate even the necessary adoption scale—how many users need to engage with and pay for this product for operational cost coverage. This is exactly where a cryptocurrency stops being only an innovative idea and becomes a real value-creating business. Making such a comparison and analyzing how this figure stands regarding the current market capitalization of a project may quite often bring an intriguing discovery to light.

Tokenomics

Tokenomics determines the economics behind a token, and it may swiftly detect a very poor investment even in a prodigiously beautiful product with a great team. Supply and demand will determine the token’s price; hence, the balance between them and their capabilities will reflect your possibility for investment. Think about:

• What do I need the token for? Is there a demand for the token if the project is successful?
• Are additional tokens created in the future, and if so, how and when do they appear?
• Are tokens secured for the team and early investors, and when will they be unlocked? (They paid a cheaper price and may wish to profit.)
• Yes, projects can burn (destroy) tokens, causing the supply to drop.

Development team

The technical backbone is critical in the age of digitalization. Consider:

• What do I know about the team behind a token-based project?
• What’s their background? What skills do they have?
• Can they keep the promise?
• Are they putting forth the required effort on the project?

Like navigating a potholed road unthinkingly, seeking advice from experienced travelers guides your journey through the unknown.

Community support

Today’s community may become tomorrow’s product users and customers. It is critical to investigate this and have a better understanding of the community. Ask yourself the following questions:

• Is the community real? Are Twitter/Discord followers merely empty accounts?
• Are the folks interested in the product, or are they merely speculating?

Assume the community comprises speculators and those looking for rapid rewards, free cryptocurrency, airdrops, allowlists, etc. If it becomes tradable, there will likely be pressure.

Security & transparency

In an instant, both can obliterate a project’s value if not addressed; reviews on blockchains highlight their persistent nature. In blockchain security breaches, human error, not technical flaws, is often responsible. But if failed security is rarely the intention, then scams are. And at least some transparency offers a slightly more chance to catch fraud early. So ask yourself:

• Who has vital access to the code? What would be the worst-case scenario?
• Is there a single point of failure (e.g., one individual with the private keys to modify a smart contract)?
• Is any information concealed that should be transmitted?

Performance

Past performance can indicate what to expect, though it does not guarantee future results. Projects with strong performance histories may have significantly higher market capitalization than unproven ones, reducing risk exposure.

During a bull market, prioritize established, credible projects over those caught up in euphoria. Meanwhile, overall appreciation in value is growing due to market dynamics and investors’ shifting focus towards more speculative assets. Some well-versed projects do lag in valuation growth. This lag is not due to their fundamentals.

Resiliency and innovation are key in project teams, especially those maintaining strong governance and product development despite market conditions. A well-funded team’s relentless delivery and long-term focus during a bull market are positive signs for a cryptocurrency project. This augurs well for an asset that could become interesting.

Conclusion

Most articles based on the survey thus positioned cryptocurrencies as the best option for 2024. For projects with upcoming halvings, consider high-risk factors before making decisions. Leading in smart contracts and DApps, Solana, Avalanche, and Chainlink show potential but carry risks inherent in newer projects. All in all, investors must diversify their portfolios and conduct adequate research before investing in cryptocurrency. That is the “best” crypto’s best reach and risk tolerance.