As an expert in the field of cryptocurrencies, I have been closely monitoring the market and analyzing various metrics to determine the best coins to hold at the moment. In this article, I will share my insights on the top cryptocurrencies that are worth considering for investment. When evaluating cryptocurrencies, I take into account their utility or store of value, as well as their trading momentum and other key factors such as seven-day performance and 24-hour trading volume. Based on these criteria, I have compiled a list of the best cryptocurrencies to buy or keep an eye on, ranked by their 24-hour volume.
It's important to note that these cryptocurrencies are not stable currencies, which are tied to stable assets, nor are they wraparound currencies (tokenized versions that operate on non-native blockchains) or liquid currencies, which are given in exchange for a bet. One of the main metrics I consider is whether a cryptocurrency has shown positive performance in the last seven days, with a high volume of transactions in the past 24 hours. This helps identify assets that are currently attracting investor interest and have potential for growth. With over 17,000 cryptocurrencies in existence according to Coingecko, it's clear that this is an emerging market with a lot of potential.
The Dominance of Bitcoin
When we think of cryptocurrencies, the first one that comes to mind is usually Bitcoin. This is because Bitcoin holds more than 64% of the total cryptocurrency market. Therefore, any cryptocurrency outside of Bitcoin is considered an alternative currency. In recent times, investors have been turning to cryptocurrencies as interest rates have fallen and the cryptocurrency-friendly administration of President Donald Trump has taken over.So if you're still bullish on cryptocurrencies, now may be a good time to invest. The approval of Bitcoin's first spot price exchange-traded funds (ETFs) in January 2024 has made it easier for both retail and institutional investors to invest in the currency without the need for a crypto wallet. Additionally, large companies like MicroStrategy (MSTR -0.91%) have been accumulating Bitcoin, and the Trump administration has even established a Strategic Bitcoin Reserve. Furthermore, countries facing high inflation such as El Salvador and the Central African Republic have adopted Bitcoin as their national currency for a period of time.
All of these developments have contributed to the idea that Bitcoin is becoming the digital equivalent of gold.
Ethereum: The Second Largest Cryptocurrency
Ether, the native cryptocurrency of the Ethereum blockchain, is another popular choice among investors. As a Proof-of-Stake (PoS) token, Ether can no longer be mined. Instead, investors stake their tokens on the blockchain to earn rewards similar to interest.The Ethereum PoS blockchain also supports smart contracts, which can be used to develop decentralized applications (DApps) and other cryptoassets. The network activity of Ether can make it either inflationary or deflationary, depending on whether there is an increase or decrease in demand. Currently, there are approximately 120.7 million tokens in circulation. While Ether ETFs with spot prices were approved last year, they only stored the tokens in cold storage without passing on the rewards of staking (between 3% and 5% per year) to investors.
However, the next round of ETFs could potentially include these rewards.
Cardano: A Rival to Ethereum
Cardano, like Ethereum, allows users to interact with decentralized protocols and non-fungible tokens (NFTs). Founded by the co-founder of Ethereum, Charlie Hoskinson, Cardano aims to create a new and improved blockchain for smart contracts. Before investing in any cryptocurrency, it's crucial to understand where its value comes from and its potential use cases.For example, Bitcoin's value is derived from its security, limited supply, and widespread recognition as “digital gold.” It's also important to consider the tax implications of investing in cryptocurrencies. Any gains or losses must be reported in your taxes, which can potentially save you money.
Our Criteria for Evaluating Cryptocurrencies
We have analyzed 200 of the top cryptocurrencies based on their liquidity and availability, technology, industry leadership, tokenomics, and other key factors. Our goal is to provide a comprehensive overview of the most promising cryptocurrencies in the market.Now let's take a closer look at some of the top coins that made it to our list.
The Pioneering Bitcoin
Bitcoin introduced the concept of blockchain and offers a fully decentralized digital currency that is highly secure. Its implementation of Proof-of-Work makes it extremely difficult to modify transaction history or double-spend coins. The network is secured by miners who are rewarded with BTC coins for adding blocks to the Bitcoin blockchain.Despite the launch of countless other cryptocurrencies and blockchain platforms after Bitcoin, BTC remains the largest cryptocurrency by market capitalization. An interesting development in the Bitcoin market was the recent transfer of over 80,000 BTC coins that had been inactive for 14 years. While this raised concerns about a potential sell-off, analysts at chain analysis firm Arkham state that there is no indication that this whale is planning to sell their bitcoins.
Ripple: Fast and Low-Cost Transfers
XRP offers fast and low-cost transfers, making it suitable for use cases such as remittances.Unlike Bitcoin and Ethereum, XRP does not use Proof-of-Work or Proof-of-Stake. Instead, it implements the XRP Ledger consensus protocol, where all network participants can choose a set of validators they trust to act honestly. Ripple has integrated XRP into its products, particularly On-Demand Liquidity (ODL), which works in partnership with cryptocurrency exchanges to provide efficient cross-border money transfers. This news has contributed to a strong weekly performance for XRP, with the currency rising 4.6% against the U.
S. dollar in the past 7 days.
Polygon: Improving Ethereum's Scalability
Polygon is an ecosystem of layer 2 blockchain platforms designed to enhance Ethereum's scalability. The most widely used platform in the Polygon ecosystem is the Polygon Proof of Stake (PoS) platform, which is an Ethereum-compatible blockchain that offers significantly lower transaction fees.The Polygon team has also created AggLayer, a reliable protocol that enables cross-chain interoperability. Additionally, Polygon Labs and GSR have launched Katana, a new Ethereum-based...
