As we navigate the ever-evolving landscape of cryptocurrencies, one question frequently asked by both novice and experienced investors alike is "what is the best crypto to buy now?"
There are over 20,000 activily traded cryptocurrencies and with each one boasting unique features and potential for growth, determining the optimal choice can be daunting.
In this article, we aim to guide you through the process, highlighting key factors to consider, recent market trends, and promising cryptocurrencies that may yield substantial returns in the current financial climate.
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Selecting the Best Cryptocurrency
Selecting the best cryptocurrency to invest in requires a careful, multi-step process that integrates several critical factors.
Here's a general overview of that process:
- Understanding Cryptocurrency Basics: The first step involves developing a solid understanding of what cryptocurrencies are, how they work, and the technology behind them, such as blockchain.
- Researching Individual Cryptocurrencies: This involves delving deeper into specific cryptocurrencies, their technology, use cases, and the teams behind them. This can help you understand their potential for growth and stability.
- Analyzing Market Trends: Evaluating the current state of the cryptocurrency market is essential. This includes understanding the overall market sentiment, trends in price action, and recent news or events that could impact the market.
- Assessing Risk Tolerance: It's crucial to evaluate your own risk tolerance before investing. Cryptocurrencies can be highly volatile, and it's important to only invest what you can afford to lose.
- Diversification: It's often a good idea to spread your investments across multiple cryptocurrencies to reduce risk. Having a diverse portfolio can help mitigate potential losses.
- Staying Informed: The cryptocurrency market is always changing. Staying updated with the latest news and trends can help you make informed decisions about when to buy or sell.
- Regular Review and Adjustment: Once you've made your investments, it's important to regularly review and potentially adjust your portfolio based on changes in the market or in your investment goals.
By following this process, you can make more informed decisions about which cryptocurrencies are the best to buy at any given time. However, keep in mind that investing in cryptocurrencies is inherently risky, and it's important to do your own research and possibly consult with a financial advisor.
Key Factors to Consider:
Determining the best cryptocurrency to invest in involves several key factors. Here's a closer look at some of them:
- Market Capitalization: The total market value of a cryptocurrency can indicate its popularity, stability, and potential for growth. Larger market capitalization can often mean less volatility.
- Liquidity: Liquidity refers to the ease with which a cryptocurrency can be bought and sold without affecting its price. Higher liquidity usually means you can sell your investment more easily.
- Use Case and Technology: The potential success of a cryptocurrency often hinges on its underlying technology and its real-world applications. For instance, Ethereum’s value is partly derived from its smart contract functionality, which has enabled the development of DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens).
- Regulatory Environment: Changes in regulations can have a significant impact on a cryptocurrency's value. Positive regulation can boost the price, while negative regulation can lead to a decrease.
- Community Support: A cryptocurrency with a strong, active community can often indicate a more resilient and thriving cryptocurrency. Community can be measured by social media activity, developer participation, and overall user engagement.
- Developer Activity: A cryptocurrency with active developers regularly updating and improving the network can be a good sign of its long-term viability.
- Historical Price Trends: Past performance is not indicative of future results, but studying historical price trends can give you an idea of a cryptocurrency's volatility and price potential.
- Partnerships and Integrations: Cryptocurrencies that are being integrated by companies, financial institutions, or being used in partnerships with other projects often have a strong use case, which can increase their value over time.
Each of these factors plays a significant role in assessing which cryptocurrency is the most promising investment. However, these should not be the sole determinants of your decision.
Recent Market Trends:
A year ago, Bitcoin traded at around $50,000, and the crypto market was so pervasive that you couldn't watch a sporting event without encountering a crypto advertisement. The potential for wealth seemed limitless – so much so that it felt like one could become rich by minting a non-fungible token (NFT) of their own left nostril.
Unpredictable events such as the collapse of Celsius Network and Voyager Digital, or the shift in public opinion of key figures like Sam Bankman-Fried, have shown that trends can change on a dime, and predictions are often proven wrong.
The Year Ahead
As we move towards 2023, the direction of the crypto market is largely contingent on the developments in crypto funding in the first quarter. Jamie Burke, CEO and founder of Outlier Ventures, notes that despite the unpredictability, the strength of the venture market has endured.
Billions of dollars continue to pour into the space, with a record number of applications observed in their most recent cohorts for 2022. However, Burke also acknowledges the undeniable shift in the venture landscape, with fund managers opting to conserve capital as we head into 2023.
This is a sharp turn from the "spray and pray" strategy adopted during the bull run, and Burke anticipates that many investors will choose to "double down" on less risky investments from later-stage companies that are already demonstrating growth.
As the crypto market continues to evolve, staying abreast of these trends will be crucial for those seeking the best crypto to buy now.
When determining the best cryptocurrencies to buy now, it's necessary to take into account the current market cycle. Since earlier this year, the crypto market has been in a bear market, which means that solid (blue-chip) crypto assets are now available at a major discount.
Some of the largest market cap coins and tokens have since dropped by more than 70% from their prior all-time high, offering an attractive entry price for investors.
Top 10 Cryptos to Buy Now
These coins show great potential for massive gains:
Bitcoin (BTC) - Ranked #1
The oldest and most well-known cryptocurrency is Bitcoin. If you are looking to increase Bitcoin holdings, these are prices we haven’t seen in a long-time. Bitcoin is considered to be the ‘blue-chip’ cryptocurrency and with only 21 million Bitcoins ever to be created and the largest cryptocurrency by market capitalization, it’s a good choice for first-time investors.
XRP (XRP) - Ranked #7
XRP is the native cryptocurrency of the Ripple network. Ripple is a payments processing platform that is designed for fast and cheap cross-border transactions. XRP is one of only a handful of ISO 20022-compliant cryptocurrencies. XRP is anticipated to be adopted as part of the ISO 20022 standard for international cross-border payments. When this system comes online, it's expected the price of XRP will see considerable growth.
Polygon (MATIC) - Ranked #10
Polygon is a proof of stake (PoS) blockchain network that was originally created as a scaling solution for the Ethereum network, to help with traffic congestion and high transaction fees.
Technically, Polygon is not a standalone blockchain, but rather a sidechain running parallel to Ethereum. This is known as a Layer 2 network. Since the creation of Polygon, it has emerged as more than just a Layer 2, but has become the third largest DeFi ecosystem. With institutional investment from major companies like Sequoia Capital ($450 million) and many new developers, we are expecting to see much more from this project.
LiteCoin (LTC) - Ranking #13
The cryptocurrency was created based on the Bitcoin (BTC) protocol, but it differs in terms of the hashing algorithm used, hard cap, block transaction times and a few other factors. Behind Bitcoin, Litecoin is the second most popular pure cryptocurrency. This success can be largely attributed to its simplicity and clear utility benefits.
As of January 2021, Litecoin is one of the most widely accepted cryptocurrencies, and more than 2,000 merchants and stores now accept LTC across the globe.
Tron (TRX) - Ranked #15
TRON is a blockchain-based platform that aims to share free, decentralized user content. TRON aims to ‘heal the internet’ by giving data liberation to its users. They get to control their data and get rewarded directly for what they produce. These include games, DeFi, and even a bike-sharing DApp. TRON envisages a ‘Web 3.0‘, an internet where no middleman exists, and DApp creators have complete ownership over what they produce.
Monero (XMR) - Ranked #24
Almost as old as Bitcoin, Monero is the privacy-focused cryptocurrency that Bitcoin is not. It’s often been said that every cryptocurrency portfolio should have a privacy coin and there is no better-known privacy coin than Monero.
For those who are privacy conscious and looking for a place to anonymously and private transactions, Monero is the go-to privacy cryptocurrency. As we continue to see the increase in government rules and regulations increase around the use and adoption of cryptocurrency, its expected privacy coins will become more popular and widely used, with Monero being at the top of the list.
Toncoin (TON) - Ranked #28
Toncoin (TON) is a decentralized layer-1 blockchain developed in 2018 by Telegram (the popular messaging platform). The project was then abandoned, taken over by the TON Foundation, and renamed from "Telegram Open Network" to "The Open Network".
QUANT (QNT) — Ranked #30
Quant, one of my personal favorites is also in the interoperability space using its Overledger Network to bridge the gap between various distributed ledger technologies. It is also considered to be one of the few ISO 20022-compliant cryptocurrencies. This project identifies itself as the first operating system built for the blockchain. It is also rumored that Quant is ISO 20022 certified and will be part of the CBDC (Central Bank Digital Currency) initiative.
Fantom (FTM) - Ranked #59
Fantom is a Layer-1 blockchain that uses a scratch-built consensus mechanism and independent consensus layer, Lachesis, to facilitate DeFi and related services on the basis of smart contracts.
Fantom is an open-source decentralized smart contract platform for DApps and digital assets that were created as an alternative to Ethereum and a platform for the move towards Web 3.0 and DeFi applications.
GMX (GMX) - Ranked #78
GMX is a decentralized spot and perpetual exchange that supports low swap fees and zero-price impact trades. Trading is supported by a unique multi-asset pool that earns liquidity providers fees from market making, swap fees, leverage trading (spreads, funding fees & liquidations) and asset rebalancing.
How to Find the Best Cryptos to Buy
In this part of the article, we provide insight into some of the methods used by investors to find the best low-market-cap cryptos for their portfolios.
How to Evaluate a Cryptocurrency Project
You have likely heard, that it’s very important to Do Your Own Research (DYOR), but what does that exactly mean? How do you get started and what does it involve?
A complete explanation and 7-step method are explained in this article. These are the steps every serious investor should perform when deciding upon a cryptocurrency.
When to Buy?
We have all heard to buy low and sell high, but when is the best time to purchase a cryptocurrency? Now that you have identified the right project when is the best time?
On a macro scale, it’s important to know the market and where it is in its cycle — Is the market in a bull or bear market? Given the nature of the cryptocurrency markets, the price of Bitcoin dominates the market. If Bitcoin goes up, so does the rest of the market. If Bitcoin goes down, so does the rest of the market.
To help you better understand the market cycle, we have written a full article on the 4-phases of the crypto market and which cycle is the opportune time to buy and sell.
Fear & Greed in the Market
As an investor, it’s also important to take into account the Fear & Greed Index in the cryptocurrency market. The cryptocurrency market is highly emotional, and the two greatest emotions determining the best time to buy (or sell) are greed and fear.
When greed is at its highest, it often signifies the peak of the market (and a good time to sell). When fear is at its highest, it often signifies when the price is at its lowest (and a good time to buy).
For more about the cryptocurrency fear and greed index, a have written a full article on this:
Crypto Chart Patterns
Lastly, when it comes to buying, it’s important to be aware of chart patterns and how to read them. In this detailed article, we cover the 20 most common crypto chart patterns and how to read them.
The cryptocurrency market is highly volatile and when choosing to purchase a cryptocurrency it's important to consider your investing risk profile. As always it's important to do your own research.
While the above coins are fantastic overall investments, they need to fit into your investing style. Some people enjoy the fast pace of day trading while others are looking for more of a long-term investment.
Your investing style will to a large degree determine when and what cryptocurrency investments you should invest in. If you are looking for crypto with the greatest return on investment, you'll likely want to check out low-market-cap coins.
Learn to Profitably Invest in Cryptocurrency
When it comes to investing in cryptocurrency, some of the best cryptocurrency investments have been within the small market cap cryptos. These are projects with very low market capitalization and massive adoption potential. These small market-cap projects have tremendous growth potential and are often referred to as small-cap gems.
With over 10,000 actively traded cryptocurrencies and many of these falling within the small, micro and nano market capitalization, it's often difficult to separate the wheat from the chaff. Join us as we research and publish our findings when looking for the next small-cap gem.
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