Finally, cryptocurrencies have managed to reshape the financial world on one hand and bring several opportunities and risks for more. There are so many new coins and tokens popping up regularly that it can be difficult to figure out which ones are worthy of close consideration as long-term investments. Here at NFT Droppers, we look at some of the best crypto assets that you should potentially be buying in 2024.
1. The Pioneer of Digital Currency is Bitcoin (BTC)
As for now, Bitcoin remains the market leader amongst all the cryptocurrencies. Bitcoin was created in 2009, as the first decentralized digital currency, and is still renowned in the world of crypto. The limited amount of bitcoins, solely 21 million coins, and how Bitcoin can absorb market drift makes bitcoins often thought of as being a store of value like gold. Now, Bitcoin is becoming a mainstream adoption including institutional investors, and companies like Tesla and MicroStrategy who hold lots of BTC on their balance sheets.
Why Buy Bitcoin?
High liquidity: The most traded cryptocurrency is Bitcoin, so it’s a cinch to purchase and sell.
Store of value: By many, considered to be a way to hedge against inflation and financial uncertainty.
Widespread adoption: In fact, the use of Bitcoin in other sectors is still increasing.
2. Ethereum (ETH) – A Leader in Smart Contracts and DApps
Ethereum, the second biggest cryptocurrency by market cap, introduced the idea of smart contracts for decentralized apps (DApps) on its blockchain. A large part of the decentralized finance (DeFi) ecosystem and the area of marketplaces for NFTs relies on Ethereum’s blockchain. In 2022 then, Ethereum completed its Ethereum 2.0 transition to a proof of stake consensus mechanism that is meant to add more security, energy efficiency, and scalability.
Why Buy Ethereum?
Innovative technology: Ethereum’s smart contracts are still one of the most cutting-edge things going on in the blockchain realm.
Large developer community: The Ethereum ecosystem itself is great, it attracts top talent and plenty of projects.
Staking rewards: Ethereum 2.0 lets users stake ETH and is rewarded.
3. Binance Coin (BNB) – The Utility Token for Binance Exchange
The Binance Coin (BNB) is the native token of the Binance exchange which is considered as the number one largest cryptocurrency exchange throughout the world by the volume of trades made. Originally utilized to cut down Binance’s transaction fees, BNB has become more useful. Now, BNB is being used for paying transaction fees on Binance Decentralized Exchange (DEX), token sales, and gas fees on Binance Smart Chain (BSC).
Why Buy Binance Coin?
Strong exchange ecosystem: Therefore, Binance is the most popular exchange, and BNB is indispensable.
Versatility: Used for trading, or staking.
Burn mechanism: The total supply of BNB tokens is burned by Binance regularly.
4. Cardano (ADA) – A Scalable and Sustainable Blockchain
One thing that is a great thing about Cardano is that it takes a pretty scientific approach to the development of blockchain and gives a lot of importance to the sustainability aspect of it. Cardano blockchain is built on peer-reviewed research and uses the most reliable of consensus mechanisms which is based on Proof of Stake. With scalability and low energy consumption in the offering, Cardano is an option that developers and investors can invest in with long-term benefits for sustainability in mind.
Why Buy Cardano?
Sustainability: A proof-of-stake mechanism, which means low environmental impact.
Strong development: Cardano is developing in a peer-reviewed and academically researched way.
Growing ecosystem: Adoption is happening on Cardano for DeFi and other areas.
5. Solana (SOL) – High-Speed, Low-Cost Transactions
Solana is a fast, low-cost blockchain that is great for decentralized apps, gaming, and NFT projects. Ethereum and Bitcoin can only manage a couple of transactions per second, compared to thousands for Solana’s blockchain. Low cost and scalability are how one can easily guess that Solana is an attractive choice for developers.
Why Buy Solana?
Scalability: High volume, low transaction, and management costs, and Solana can process transactions quickly.
Ecosystem growth: The DeFi and NFT Space on Solana is growing fast.
Speed: This very fast transaction processing time makes it perfect for real-time applications.
6. Ethereum’s Scalability Solution: Polygon (MATIC)
Ethereum scaling solution Polygon is built to tackle network congestion by cutting down on the load on the Ethereum blockchain. The use of Polygon enables developers to build scalable and cost-effective applications, sacrificing no security. Polygon’s native token, MATIC is used for transaction fees, staking, and governance.
Why Buy Polygon?
Ethereum compatibility: Using Polygon does not affect the security of Ethereum’s technology.
Low fees: Polygon’s low transaction fees prove to be more attractive in comparison to Ethereum’s mainnet.
Strong partnerships: Many of the large projects and companies in the blockchain space are partnering with Polygon.
7. Avalanche (AVAX) – A Fast and Secure Blockchain for DApps
Avalanche is a platform of blockchains for DApps and custom blockchain networks. Avalanche wants to be a faster and more secure alternative to traditional blockchains by offering near-instant finality and high throughput with a consensus mechanism. For transaction fees, staking, and governance, the native token of Avalanche is AVAX.
Why Buy Avalanche?
High performance: It provides avalanche-fast transaction finality and a highly scalable network.
Interoperability: Unlike other blockchains, Avalanche supports multiple blockchains, which is more flexible.
Developer-friendly: DApps and projects are growing in the Avalanche ecosystem.
8. Polkadot (DOT) – A Blockchain for Cross-Chain Communication
Blockchains that will be connected to Polkadot will be able to share data and communicate across the various blockchains. Polkadot is based on interoperability, which lets it link separate blockchains whilst presenting a secure and scaled platform for decentralized applications. Governance, staking, and bonding are what the DOT native token of Polkadot is used for.
Why Buy Polkadot?
Interoperability: The project makes Polkadot, unlike any other project in that it allows for information to be shared between multiple blockchains.
Scalability: Connected multiple chains let Polkadot scale much more.
Governance: If you are a DOT holder, you can participate in the governance of the network.
Conclusion
Investing in cryptocurrency may prove to be very rewarding but risky. You need to be thoughtful when choosing your investment strategy and ensure you spread your investments out. For the rest of 2024, some coins to watch are Bitcoin, Ethereum, Binance Coin, Cardano, Solana, Polygon, Avalanche, and Polkadot, above. These are some of the most promising projects in the cryptocurrency space. Stay up to date and do proper digging before making any type of investment.
Keeping an eye on the best cryptocurrencies in this list helps you position yourself for gains in the increasingly volatile universe of digital assets.
