The cryptocurrency market experienced a significant crisis that affected almost the entire market in 2022, in which the crypto industry reportedly lost nearly 3.9 billion US dollars. In 2023, the crypto market has recovered with a market capitalization that gained more than 100% last year.
Although the cryptocurrency market faces several challenges in 2024, other news is relatively positive, such as the SEC’s authorization to launch a spot Bitcoin ETF, which could support the normalization of the largest cryptocurrency in the market.
This step also encourages investors to take an interest in other cryptocurrencies to create a diversified portfolio. However, the crypto market must continue to consolidate the base, which will support the expansion of the rebound of cryptocurrencies after the numerous bankruptcies and the risks linked to the structural instability of several projects, which may encourage caution.
Do you want to invest in cryptocurrencies? Find out which crypto to buy to make the most of your crypto investments in this article, which offers an overview of the best crypto in 2024. Check out our selection of the top 9 cryptocurrencies for 2024.
1. Bitcoin: the reference cryptocurrency to buy
When individuals are deciding which Best crypto to buy now, Bitcoin (BTC) tends to be a top contender. This is because Bitcoin, created by Satoshi Nakamoto, holds a significant position in the cryptocurrency world as the first-ever digital currency and the one with the highest market value.
As the leading cryptocurrency, BTC gives a good overview of the trends of all other cryptos. 2020 was a record year for Bitcoin. Its capitalization was multiplied by more than 2.5 over the year! In 2021, Bitcoin grew more slowly but still gained almost 50%. The capitalization of Bitcoin has also exceeded that of companies like LVMH or Bank of America. But such performances generally herald such brutal falls since it lost almost 60% in 2022.
Bitcoin started 2023 above $16,550 and ended the year around $38,253, an increase of more than 130% in 2023. The trajectory of inflation and monetary policies has impacted the evolution of Bitcoin in 2023, which has notably favored the purchase of cryptocurrencies as an investment in riskier assets.
We must also remember the banking and financial sector crisis, which influenced the token’s value. Technological developments around Bitcoin also impact the network’s performance and should attract more investors. For instance, Jacobi Asset Management debuted Europe’s inaugural spot Bitcoin ETF on Euronext Amsterdam, known as the Jacobi FT Wilshire Bitcoin ETF, on August 15, 2023. Additionally, MicroStrategy remains active in acquiring fresh Bitcoin holdings.
In 2024, a new product on the stock market will be available for American crypto investors wishing to gain exposure to Bitcoin: a spot Bitcoin ETF. The American market watchdog, the SEC, authorized listing 11 ETFs relating to Bitcoin on January 10, 2024. While some issuers are established players, such as Fidelity, BlackRock, and Invesco, others, like Grayscale, 21Shares, and Ark Invest, are more recent.
ETFs are generally financial products that help the development of underlying markets, particularly in terms of liquidity, as was the case with the gold market. Galaxy Digital said these Bitcoin ETFs could bring between $14 billion and $38 billion in liquidity to the Bitcoin market in 3 years.
In April 2024, the next Bitcoin halving is expected to occur; increasing BTC miner rewards from 6.25 BTC to 3.125 BTC, which could have a significant impact on the price of Bitcoin if the Demand remains high, as the supply of BTC tokens is expected to decrease.
2. Ethereum: challenger to Bitcoin and most used crypto
Ethereum (ETH) is the second largest cryptocurrency in terms of valuation. It is, therefore, not a new cryptocurrency either, but its preponderance still makes it an essential crypto in 2024. Should you buy cryptocurrency in 2024?
In 2021, ETH significantly outperformed Bitcoin (+270%), but the fall in 2022 was even more significant since the token lost almost 70% that year. In 2023, ETH gained over 71% and rose from $1,200 to $2,063.
Despite poor performance in 2022, Ethereum implemented “The Merge” update in mid-September 2022 to move from Proof of Work to Proof of Stake, which proved to be one rare positive development in the market in 2022. The merger reduced the amount of ETH tokens in circulation and made the Ethereum network 99.95% more energy efficient. Demand for Ethereum staking in 2023 has grown significantly, mainly from institutions since The Merge.
This is a big step forward, as ETH is often considered the most widely used virtual currency. This is explained by the presence of many tokens based on the use of Ethereum. The recent boom in the DeFi sector should support the crypto-asset, especially if the banking crisis intensifies.
We can associate ETH with a stock market index to the extent that the companies that make it up would be players in the crypto industry. This mechanism also explains the panic attack that affected ETH in 2022. Specific tokens linked to Ethereum, like StETH, are one of the primary explanations for the collapse of platforms like Celsius.
The year 2023 saw a significant new update for the Ethereum network. Called Shappella, this improvement made to the Ethereum blockchain since its Merge update allows investors to exchange a derivative of deposited Ether tokens, such as OP, ARB, and other ERC-20 tokens, for the interest accumulated on the blockchain network during the last three years.
Ethereum developers have detailed a comprehensive strategy for the network’s advancement in 2024, including significant improvements and new proposals. A crucial part of their plan involves abandoning the Goerli testnet, scheduled for a fork in early 2024. This move is part of the initiative to activate “Dencun” on the network in January 2024, marking a significant step forward in capabilities network technologies.
3. Binance Coin: the crypto that enters the big leagues
Binance Coin, issued by the famous platform of the same name ( Binance ), now belongs to the exclusive club of the five largest cryptocurrencies in the world. Binance is one of these giants benefiting from democratizing cryptocurrencies in individual savings.
While many promising projects like those related to NFTs on the BNB Chain blockchain are expected to support the Binance ecosystem and the value of the token, it is now the time to buy the cryptocurrency, which has gained more than 32% in 2023, in going from $244 to $323?
Although Binance Coin is one of the few exchanges that has continued some hiring in 2023 and shown confidence in the future, mainly due to its historical and dominant position, it remains exposed to structural risks and oversight of the American policeman, the SEC.
At the end of August 2023, a new secret court filed concerning Binance, already accused of objectionable practices in the United States, raises questions about possible unfavorable developments for Binance. The SEC submitted a sealed motion, allowing it to file sensitive or confidential information without disclosing its contents publicly.
Since November 2023, the platform and its former CEO, Changpeng Zhao (CZ), have faced various charges from American justice, such as violation of banking secrecy, lack of a mandatory anti-money laundering program, or implementation of the place of illegal operations. The Binance platform has agreed to pay a fine of $4.3 billion, and former Binance CEO CZ is currently required to remain in the United States until a decision is made in February 2024.
4. USDC and USDT: maintaining stablecoins
Buying cryptocurrency: are stablecoins a good idea? The year 2022 will have been the year of all turbulence for stablecoins. Despite this, the stablecoins USDT and USDC are in 3rd and 7th place among global cryptocurrencies at the start of 2024. They could attract investors who want to diversify their portfolios while investing in the (theoretically) least risky crypto-assets.
The crisis in the cryptocurrency market of 2022 was induced by the parity problems of several stablecoins ( Terra in the lead). It is necessary to differentiate stablecoins indexed (theoretically) to “real” dollars from algorithmic stablecoins based on other cryptocurrencies, which also claim to ensure parity. The Terra USD was in the latter category. Conversely, USDC and USDT are tier-one stablecoins. However, regarding USDC, the token is linked to Circle, a platform that has experienced significant difficulties.
Finally, it is essential to remember cash’s attractiveness during market decline periods. “Cash,” that is to say, liquid assets (dollars in particular), is one of the rare asset classes to have performed despite the crisis in the cryptocurrency market. In addition to the protective effect of stablecoins, it is attractive in the context of inflation and liquidity crises, especially for the dollar.
Also note that the Banque de France announced in 2022 the launch of a digital euro in the coming years, just like many other countries. Latin American countries, which face high inflation, monetary control, and low availability of traditional financial services, are increasingly involved in cryptocurrencies, particularly stablecoins, including USDC (Mercado Libre, Ripio, Lemon, Credix, Littio, etc.). The reaction of traditional stablecoins must, therefore, be monitored carefully.
5. Solana: an atypical blockchain using Proof of History to achieve faster transaction management
Solana, an open-source blockchain, was launched in March 2020 to facilitate access to decentralized finance (DeFi) through fast and secure transaction processing via the Proof of History protocol.
This method allows encoding the timestamp of messages passing through the network to obtain consensus on transactions once this step has been validated without requiring coordination between network nodes. This way, everyone can quickly check the validity of a transaction’s timestamp, which significantly improves the performance and speed of the blockchain.
Solana recorded an incredible performance in 2023, gaining more than 750%. This is the best performance in 2023 in the Top 10 largest cryptocurrencies by market capitalization, pushing the token to 5th place among the most significant cryptocurrencies. The growth prospects for the network and token are attractive, mainly thanks to the growing Solana ecosystem and the recent boom seen in DeFi.
6. Cardano: a crypto based on a double blockchain and well-established in the Top 10 virtual currencies
Cardano (ADA) is among the eight largest cryptocurrencies to date. It is a blockchain platform that stands out from its competitors by having a double blockchain that allows secure and scalable transfers (capacity to respond to high Demand).
In 2021, the price of Cardano recorded even better performance than in 2020 (+390% against +350%), which allowed the virtual currency to exceed the previous peaks of 2018. But the correction was also brutal, and Cardano significantly underperformed significant cryptocurrencies in 2022, with a decline of over 80% from $1.309 to $0.239. However, here we find the “usual” behavior of the Cardano price during the phases of expansion and depression of the market.
In 2023, the ADA token had a volatile year but gained over 140%, going from $0.2538 to $0.6174. Should you buy cryptocurrency in 2024? It is a relatively affordable token compared to other cryptocurrency market options, making it a positive. As a third-generation blockchain platform aimed at solving the scalability and interoperability issues that plagued previous generations of blockchains, Cardano could continue to enjoy growth this year.
7. Chainlink: the blockchain allowing the link between real-world data and the world of blockchains to develop Web3
Chainlink is a blockchain created to offer a decentralized oracles network, making it possible to connect two worlds: the on-chain one (therefore, on the blockchain) and the off-chain one (hence, the one outside). Therefore, the use cases linked to intelligent contracts are exciting and increasingly relevant in our current world.
In March 2023, Chainlink announced the launch of its latest product, Chainlink Functions, which helps connect Web2 APIs with the Web3 world, making it easier to integrate real-world data onto a blockchain. This functionality offers various possibilities and use cases, allowing Web3 projects (dApps or smart contracts) to connect with Web2 systems like Meta, Amazon Web Services, or Google Cloud.
The LINK token has increased significantly in ranking the largest cryptocurrencies since it is in 14th position among the largest cryptocurrencies. It has gained over 182% in 2023, from $5.677 to $16.05.
By allowing developers to combine the best of Web3 intelligent contracts with the power of Web2 APIs, Chainlink will undoubtedly promote the development of applications that combine the best of both worlds. This should thus support the network and its token over time as blockchain adoption and project creation increase.
8. PAX GOLD: a cryptocurrency to protect your wallet
PAX GOLD is a particular cryptocurrency that allows you to reduce the risk in your portfolio. In addition to the speculative or diversification aspect brought by digital currencies, purchasing a cryptocurrency must also be done according to a level of risk tolerance. Issued by the company Paxos, the cryptocurrency’s objective is to reproduce variations in the price of gold. Thus, PAXG tokens are issued with corresponding reserves via the Paxos company.
One of the most significant advantages is that investors do not have to worry about the custody and protection of real gold, nor its transfer, since PAX provides these services. Additionally, it is possible to profit from gold through fractional investment, making these tokens more accessible to individual investors who want to invest in gold but otherwise would not be able to benefit.
The price of the token remains correlated with the cost of gold, which stagnated in 2021 (after a performance of +19% in 2020) and which was relatively stable in 2022 (although very volatile with a high at $2,070 and a low of $1,614). However, it strengthened in 2023 with the rise in gold. The PAX Gold token has gained more than 9% in 2023, going from $1,851 to $2,033, thanks to the increase in gold, which remains above $2,000 for a long time.
Since PAX Gold is a hybrid asset combining crypto asset technology and gold and bridges the gap between these two different investment opportunities while providing the same degree of security and consistency as BTC, it should appeal to many investors who wish to diversify their portfolios. An attractive cryptocurrency purchase for 2024?
9. Ripple: the cryptocurrency that has retained its place among the most essential cryptos for more than ten years
Ripple (XRP) was created in 2012 by Ripple Labs, although the Ripple project dates back several years before that. The development of the project and the XRP token aimed to provide a digital payment protocol enabling fast and inexpensive international transfers.
Ripple tokens were all pre-mined to differentiate themselves from other tokens, and their services focused on interbank exchanges. Ripple is developing its services to improve interbank payments and to offer solutions to banking groups and financial institutions.
The resilience of the XRP token (which is still positioned in the Top 6 cryptos) is quite impressive because it has suffered the wrath of the SEC for several years. After many twists and turns, the SEC dropped charges and lawsuits against Ripple, its CEO, Brad Garlinghouse, and co-founder, Chris Larsen, in October 2023.
The company will still have to attend its trial in April 2024, which could influence the regulatory policy of cryptos in the United States, especially the future of the token and the Ripple project, depending on the decisions.
In 2023, the XRP token rose from $0.3399 to 0.6463, an increase of over 90%.
While the cryptocurrency market significantly outperformed in 2020 and generally stagnated in 2021, a bear market characterized 2022 as investors wondered which crypto to buy. However, although structural risks persist, the leading projects in the ecosystem are holding up, which has allowed the crypto market to grow in 2023 with many new developments.
The prices of cryptocurrencies increased at the start of 2023 with an acceleration in prices at the start of the mid-March banking crisis that began with the bankruptcy of SVB and the intensification of concerns about the European and global banking sector with the fall of Credit Suisse, after the setbacks of certain banks in the United States.
Like most traditional markets, the enthusiasm around cryptocurrencies then calmed down before accelerating again at the end of 2023. The start of 2024 is promising for the cryptocurrency market, which could benefit from several growth drivers.
If you are wondering which crypto to buy, the cryptocurrencies mentioned could attract those wanting to expand their investments in alternative assets. However, it is essential to emphasize that cryptocurrencies are highly volatile assets and, therefore, hazardous, which may not be suitable for all investors.