With over 21,000 cryptocurrencies in existence and new ones launching daily, it can be overwhelming trying to determine which coins are worth investing in. However, by doing your research and understanding market trends, you can make informed decisions about building your crypto portfolio. Here are some tips for choosing which cryptocurrencies to buy now:
Bitcoin (BTC)
As the first and largest cryptocurrency by market capitalization, Bitcoin is a relatively safe bet that should have a place in most crypto portfolios. While it may not have the explosive growth potential of smaller altcoins, Bitcoin continues to be the dominant store of value in the crypto space. Major companies and even countries are starting to add BTC to their balance sheets, lending further legitimacy.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency and the most popular platform for decentralized applications (dApps) and smart contracts. Upcoming updates like the Merge to a proof-of-stake consensus model position Ethereum for potentially significant growth. Investing in ETH gives exposure to the overall expanding decentralized finance (DeFi) space.
Cardano (ADA)
Cardano stands out for its research-driven approach and aims to be a more sustainable, scalable alternative to Ethereum for dApps and smart contracts. With the Alonzo hard fork in 2021, Cardano is now capable of running smart contracts. As it continues gaining adoption, ADA looks set to see further growth.
Solana (SOL)
One of the fastest growing ecosystems in crypto, Solana prioritizes scalability with ultra-low transaction costs and high speeds. With over 500 projects spanning DeFi, NFTs, Web3 and more built on it, SOL is a top contender for an Ethereum competitor. The blockchain outages in 2022 may raise concerns, but the development team is working to address them.
Polygon (MATIC)
Polygon provides scaling solutions for Ethereum in the form of sidechains, removing congestion issues and reducing transaction fees. Polygon has seen huge growth in 2022 as interest in Layer 2 solutions intensifies. MATIC is an affordable token that gives exposure to this burgeoning space.
Avalanche (AVAX)
Another speedy smart contract platform that could be an “Ethereum killer,” Avalanche offers 4,500 transactions per second and sub-second finality. DeFi and NFTs are thriving on Avalanche. Its native token AVAX has already seen major gains and should continue appreciating in price.
Chainlink (LINK)
Chainlink is the leading oracle network that provides real-world data to blockchains. With data reliability and security being imperative, Chainlink has an essential role in furthering crypto adoption. LINK is used to pay for these oracle services, so as demand grows, the token should increase in utility and value.
Litecoin (LTC)
One of the earliest altcoins, Litecoin is a fork of Bitcoin with faster and cheaper transactions. LTC is often a testbed for features that later get incorporated into Bitcoin. While unlikely to overtake Bitcoin, Litecoin remains one of the most trusted, stable cryptocurrencies.
Uniswap (UNI)
As the largest decentralized exchange, Uniswap is essential to the growing DeFi space. UNI holders can vote on protocol changes, positioning the token for more recognition and utilization if Uniswap continues expanding. The token has fallen significantly from its highs and could be primed for recovery.
Decentraland (MANA)
One of the earliest and most ambitious metaverse projects, Decentraland allows users to buy virtual land parcels as NFTs, monetize content, and explore 3D worlds. As the metaverse concept gains traction, MANA is an early token that provides exposure to this emerging technology.
ApeCoin (APE)
An ERC-20 governance token used in the Bored Ape Yacht Club ecosystem and launched in 2022, ApeCoin already has significant brand recognition and adoption. The hype around BAYC NFTs makes APE a compelling investment for those looking to tap into the potential of metaverse and NFT coins early on.
Axie Infinity (AXS)
An enormously popular play-to-earn NFT game, Axie Infinity has given rise to an entirely new model of gaming. Users can earn AXS tokens through game rewards and NFT trading. As blockchain gaming sees more interest from major studios, AXS has long-term potential.
The Sandbox (SAND)
In the spirit of Decentraland, The Sandbox is a virtual world where players can build, own, and monetize gaming experiences and assets. SAND underpins this creative gaming ecosystem and stands to gain as the metaverse expands.
Conclusion
This covers some of the top cryptocurrencies that are worth watching closely right now. However, crypto investing contains significant risk and volatility. Be sure to do thorough research, never invest more than you can afford to lose, and consider consulting a financial advisor before allocating major funds into any coins. We may be on the brink of a crypto spring, but always exercise caution when buying.
