7 of the Best Cryptocurrencies to Buy Now
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Loading... - Andrew Shayo
- 22 Sep 2022
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In what some call a "crypto winter," here are some of the top cryptos for risk-tolerant investors to watch.
Seven of the top cryptos to buy now
Cryptocurrencies have suffered through a vicious bear market since their peak in November 2021. The cumulative value of the once-hot asset class has plunged by roughly two-thirds in less than a year, declining from nearly $3 trillion last November to less than $1 trillion by late August. The plunge has mirrored selling in the stock market, driven by rising inflation and interest rates, that saw stocks, too, descend into bear market territory. Crypto is a far more perilous arena than the stock market, however, due to less regulation, far fewer established names, and the arcane technology behind it that can lead to "rug pull" scams or the sudden disintegration of a so-called stablecoin. In short, crypto isn't a market for the risk-averse. But for those able to withstand extreme volatility, what's the best crypto to buy? Here are seven of the top cryptocurrencies to invest in.
Bitcoin (BTC)
Every list of the best cryptocurrencies to buy should begin with Bitcoin, a practically required holding for folks looking to dip their toes in the water of this asset class. Created in 2009, Bitcoin is both the first cryptocurrency and the largest by market capitalization: BTC alone constitutes about 40% of the total market as of mid-September. Sometimes called "digital gold," Bitcoin derives value from its scarcity and historical ability to be a store of value. Only 21 million Bitcoin will ever exist, with about 19.2 million, or 91%, of its supply already in circulation. Recently, Bitcoin fell back below the $20,000 level as the broader market sold off. While some critics allege that the glory days are over for Bitcoin, more and more trusts and exchange-traded funds following the asset are emerging, and it's unlikely Bitcoin will ever disappear, unless the entire asset class goes up in smoke.
Ether (ETH)
The time has come. On Sept. 15, the Ethereum blockchain made the big jump from the proof-of-work to the proof-of-stake, or PoS, algorithm. The shift to proof-of-stake should make the popular decentralized finance, or DeFi, blockchain more readily scalable and reduce the energy demand of transactions. Longer-term, the "Merge" is expected to be the first step toward ultimately decreasing the sky-high Ethereum gas fees that serve as a barrier to entry for those looking to transact on the network. The shift to PoS should decrease the network's energy usage by more than 99%, making Ethereum – which is already the most popular blockchain for developers to build upon – more in line with its ethos.
Solana (SOL)
Solana, like Ethereum and Bitcoin, runs its own blockchain. And, like Ethereum, Solana was built from the ground up for DeFi, a rapidly growing area of finance involving smart contracts. With the potential to ultimately disrupt all sorts of transactions that currently are littered with agents, brokers, centralized exchanges and other cumbersome and expensive middlemen, DeFi is a large enough field to attract multiple winners. While Ethereum's pivot to PoS will strengthen Solana's largest competitor, SOL's low fees and fast network have already made it a top-10 cryptocurrency with staying power and an impressive ecosystem of decentralized applications, or dApps, of its own. Non-fungible tokens, or NFTs, along with a growing presence in gaming, have helped boost SOL's share of the overall market from 0.01% in January 2021 to 1.1% today. Read More…
