Best cryptocurrency to buy now

Cryptos have been trending worldwide recently. People around the world are promoting their cryptocurrency investments on social media. Unfortunately, there are numerous digital assets available in the market.

This guide could help you understand the rising popularity of cryptocurrency. More importantly, you’ll learn how to earn from these new financial products potentially cryptocurrencies to buy now. In turn, you’ll be able to choose investments wisely.

First, understand the definition of cryptocurrency. Learn its potential benefits and some promising cryptocurrencies based on our criteria. After that, we’ll get into the potential risks, so you can see how to form your inevestment strategy.

What is cryptocurrency?

You’ve probably heard a lot about cryptocurrency and bitcoin. You’ll often catch a glimpse of it on various websites. Your local news may have talked about cryptocurrency markets before.

Despite this constant coverage, most people still don’t understand what cryptocurrency is. That’s why we have to talk about bitcoin or BTC, the first-ever cryptocurrency.

Someone who goes by Satoshi Nakamoto released it in 2009. It was designed to be a financial system that would not be under the control of central banks and governments.

Bitcoin runs on a blockchain network made up of computers owned by regular people. They lend their computing power to it, so they can earn more Bitcoin in return.

Their computers validate transactions made with bitcoin. Each one is protected by encryption which can be cracked by a code. The job of these validators or miners is to compute for it.

Whoever gets the code first can add a new block to the array of previous ones, hence the term “blockchain.” They also get proof-of-work which earns them more bitcoins.

Proof-of-work is also the name of this method of operating a crypto network. When it came out in 2009, it was open-source. This enabled other people to improve upon bitcoin.

The most valuable cryptocurrencies on the market nowadays came from this time of innovation. Eventually, similar digital assets appeared with new potential applications.

Soon, they formed the cryptocurrency market we know today. We now have regular people who turned into short-term traders, often looking for the next big cryptocurrency.

Yet, the crypto holdings of long-term investors often contain the earlier tokens, including bitcoin. After seeing the top cryptocurrencies, you might want to invest as well.

Here is the list of the best cryptocurrencies to buy now:

1. Ethereum (ETH) – Blockchain beyond cryptocurrency
2. Bitcoin (BTC) – The first and most popular cryptocurrency
3. Binance Coin (BNB) – The best token from the biggest crypto market

#1. Ethereum (ETH) – Blockchain beyond cryptocurrency

Are you surprised to see this one as number one instead of bitcoin? You might not have even heard of Ethereum (ETH). Yet, this is arguably more useful than the big BTC!

Vitalik Buterin released Ethereum (ETH) in 2015. According to its website, Ethereum is the world’s programmable blockchain. As I said, cryptos don’t have just one use case.

In other words, people have many ways of using this technology. Ethereum is a great example as it’s the biggest name in decentralized finance, non-fungible tokens, and smart contracts:

• DeFi – Also known as decentralized finance, it offers conventional banking features via blockchain networks. Uniswap (UNI) is a notable example in the DeFi space. It is a crypto market platform with no central authority. Another one is the Enjin digital wallet, one of the decentralized apps that run on the Ethereum blockchain.
• NFT – Otherwise known as a non-fungible token, it lets people own a unique piece of digital media despite numerous free copies. That’s because a cryptocurrency network records the ownership. This has many interesting applications, such as NFT games like Axie Infinity.
• Smart contracts – Some crypto assets enable agreements that execute automatically whenever certain terms are met. They’re called smart contracts, and this is another highly versatile feature. For example, the Kleros platform is paving a court system for the growing digital economy.

The biggest thing that sets Ethereum apart from other major cryptocurrencies is that many investors believe it could dethrone Bitcoin. That’s right, Ethereum might become number one!

What’s more, some experts say 2022 is the year of Ethereum. That’s because we may see “The Merge” happen soon. It now has new features, but it’s not on the mainnet yet.

It now allows staking, a way of earning passive income similar to a savings account. This is possible for cryptocurrencies that use proof-of-stake instead of proof-of-work.

However, Ethereum’s main network hasn’t adopted this model yet. That will happen once “The Merge” comes. Once it does, its price may hit a new all-time high again!

Ethereum’s native token is called Ether, and its last all-time high was $4,891.70. At the time of writing, the ETH price was $3,102.28.

#2. Bitcoin (BTC) – The first and most popular cryptocurrency

Take one look at the cryptocurrency market, and it’s apparent that Bitcoin plays a major role. After all, it’s right at the top as the number one in terms of crypto market capitalization.

Since it was the first-ever cryptocurrency, it had plenty of time to build itself up. Many people have worked on Bitcoin, so more of them have crypto holdings as BTC.

It’s so big that major banks like Visa offer credit cards with Bitcoin rewards. This is a huge reason why we now have so many payment systems supporting BTC.

Bitcoin was made for use in global transactions, so its usage shouldn’t be limited to the United States. Fortunately, countries like El Salvador are leading the charge.

Its leader Nayib Bukele is determined to enrich his nation with Bitcoin. That’s why he made it legal tender for El Salvadorans. He’s even building a bitcoin mining center that uses renewable energy.

As one of the most popular cryptocurrencies, it won’t just let itself be left in the dust. That’s why it now features the Taproot upgrade and the Lightning Network.

These improve bitcoin’s scalability and transaction speed. Still, it may struggle to beat Ethereum’s wide range of applications. Hence, ETH tops this list of the top cryptos.

At the time of writing, the price of Bitcoin was $44,290.06. If you want to buy bitcoin or other cryptos, note that their prices move up and down quickly.

Read More: What Are Wrapped Tokens?

#3. Binance Coin (BNB) – The best token from the biggest crypto exchange

If you’re planning to buy any of the most popular cryptocurrencies, you would probably head to Binance. After all, it’s one of the best crypto exchanges in the world.

Binance has arguably the largest selection of crypto coins, and you’ll often find the newest ones on it. What’s more, it provides riskier trading methods such as futures contracts.

If you want safer options, Binance also offers savings and staking. The former gives less profit, but you can withdraw at any time. Staking locks your coins for a certain period, but you will likely earn more.

Binance is also one of the many platforms with its own blockchains with its Binance Smart Chain. This also means it has a separate cryptocurrency called the Binance Coin (BNB).

The crypto exchange lets you earn more BNB coins with the BNB Vault. If you want to use it in a different way, you could try the Binance NFT marketplace.

BNB serves as a utility token for this feature as it lets people buy, sell, and create NFTs for it. However, many investors see it as one of the most valuable cryptocurrencies for another reason.

It would make sense to invest in it because it’s the largest crypto exchange. As long as cryptocurrencies continue to thrive, Binance will grow along with it.

Another reason that makes this one of the most popular cryptocurrencies is its price. It’s relatively cheaper than the others in the top ten. At the time of writing, the BNB price (Binance coin) was $430.79.

Why do people invest in cryptocurrency?

You may still have trouble figuring out why people invest in these digital assets. After all, we still have the stock market and other assets, right?

We have to admit that many crypto investors are in it for profits. If you look at the bigger picture, you’ll see that cryptocurrency has far more potential than just being “internet money.”

Its blockchain technology is changing the world right now. For example, Cardano (ADA) signed a deal with the Ethiopian government last year to help with its education system.

You even have online tools that let companies accept bitcoin as a payment method. Shopify is the most popular example for small businesses right now.

Meanwhile, the Reserve Token (RSR) is helping people in Venezuela deal with hyperinflation. It now serves as a more stable form of money than its native fiat.

People outside such countries are doing the same thing. We now have hedge funds finding ways to add most cryptocurrencies to their portfolios.

Crypto investors don’t even have to hold the assets themselves. You may invest in a Bitcoin ETF, a basket of assets from a company that invests in cryptos on behalf of its clients.

On the other hand, you may invest in individual companies instead of several. For example, some companies support NFTs, so they’re good choices for NFT stocks.

You could even use it as a retirement plan by investing in a Bitcoin IRA. It’s safe to say that the world is steadily adopting cryptocurrencies, so many people see a huge buying opportunity right now.

Potential risks to cryptocurrency

Note that every investment has risks. For example, you could lose money even if you invested in a big cryptocurrency like Bitcoin. That’s because of its well-known high volatility.

This means that the prices go up and down almost every second. That’s because it’s pulled into different directions by various factors. Read the following list for more information:

• Supply and demand – As more people become crypto investors, they buy more cryptos and raise the supply. This makes the cryptocurrency prices go up too. The opposite is true when they sell more coins instead.
• Lack of regulation – Laws help stabilize the stock market, but they’re not prepared for the crypto world. This is one of the reasons for the crypto market’s weird behavior. Governments are starting to respond to this risk warning, though. For example, the US now has cryptocurrency taxes.
• Speculation – Investors rely on various bits of info to figure out where the market will go. In turn, their behaviors shape the trend of the cryptocurrency world.
• Acceptance – Companies know cryptos are highly volatile, but they still persist in adding them to their balance sheet. This helps more people buy goods with crypto coins, so this could boost their value.
• Whales – The crypto market has major investors that sell and buy cryptocurrency worth billions of dollars. As a result, they make huge “waves” in the crypto market, hence the term “whale.”
• Scalability – A blockchain platform needs a network to handle its features and user base. Sometimes, it can’t handle the load, so its features become inconvenient. In turn, users leave the platform, sell its native crypto, and buy other tokens.

How to start investing in crypto

Are you excited to buy and sell bitcoin and other cryptos? Well, you should begin by choosing a crypto trading platform. You have lots to choose from, including eToro and Robinhood.

It’s best to use one of the most popular platforms for buying bitcoins: Coinbase. Create an account, then link your bank accounts. Then, use it to purchase some bitcoins.

Back then, you needed a Binance registration to buy cryptocurrencies besides bitcoin. Nowadays, Coinbase lets you buy the other best cryptocurrencies with over 25 altcoin options.

Most platforms may exchange cryptos for traditional currencies like dollars (USD) and euros (EUR). However, be aware of their different transaction fee structures.

Best Cryptocurrencies to Invest In

It can be overwhelming to start trading cryptos, even for experienced traders. There are thousands of cryptocurrencies with their variations on blockchain tech.

They often judge a cryptocurrency by market capitalization. It’s the market price of a digital currency multiplied by the number of coins in circulation.

In contrast, some regular folks ignore market cap, price, and other indicators. They just purchase the most trending crypto their friends recommend and go all in.

For us, popularity is still a major factor. The mainstream isn’t always right or wrong. However, the best cryptocurrencies are well-documented so that you may understand them deeply.

What’s more, we chose the options that people can use to buy stuff conveniently. As a form of currency, it should be a convenient unit of exchange.

Why do you want to invest in cryptocurrency?

Before you dive into the best cryptocurrencies, ask why you’re investing in the first place. This will set your expectations and determine your investment plan.

You can’t just buy every new altcoin that releases an initial coin offering (ICO). Don’t just follow FOMO. Take a breather to find out what you want from cryptocurrencies.

It’s highly inadvisable to expect short-term gains from crypto. It’s challenging to make a quick buck out of something that rises or dips in value nearly every hour.

For example, 1 in 5 students in the US invests in cryptos to pay student loans. In response, schools have warned that this investment is more akin to gambling.

It’s much better to invest in the long-term. Bitcoin and other cryptos have relatively more stable price changes after a long period.

However, a long-term investment won’t work with the best cryptocurrencies alone. It’s much better to build a well-rounded portfolio made up of other investments.

You should check out traditional investments such as stocks and bonds. They may not promise quicker and more significant gains, but they’re relatively more stable than cryptocurrencies.

Final Thoughts

Note that the opinions expressed and the information provided in this article don’t constitute investment advice. Learn about cryptos yourself before investing.

This list of the best cryptocurrencies can help, but it shouldn’t be your only choice. Check out the other projects in the crypto world, so you can see more options that are available.

If you’d like to know more, check out the other Inquirer USA articles. Aside from crypto news, it can keep you up-to-date with the other investment trends.

Originally published on March 21, 2021 – updated on February 16, 2022.