If you're not willing to endure such violent swings, you simply shouldn't own cryptocurrencies. Even if you are, there are thousands of coins to choose from, each one with different dynamics. It's daunting. Here are six of the best cryptocurrencies to buy now.
Cryptocurrency is an incredibly nascent asset class, with origins only dating back to 2009. As 2022 showed, extreme volatility is par for the course, so investors looking to insulate themselves from the potential total collapse of their holdings will want to go with more established names, and none is more established than Bitcoin, the first cryptocurrency and largest by market capitalization with a valuation around $500 billion, or roughly 44% of the overall market.
BTC boasts the most mainstream acceptance of any of the top cryptocurrencies, with several publicly traded instruments tracking its performance, alongside publicly traded stocks such as MicroStrategy Inc. (ticker: MSTR) and Tesla Inc. (TSLA), among others, that hold Bitcoin on their balance sheets. After a 64% decline in 2022, Bitcoin has been staging an epic comeback in the first two months of the year, rallying 39.9% through the end of February.
Bitcoin rocketed from a low of $19,628 on March 10 to highs above $26,500 on March 14, with BTC hitting a fresh nine-month high in the process. Turmoil in the banking sector and decelerating inflation make it more likely the Federal Reserve will proceed with further rate hikes in a more cautious manner, a good omen for more speculative investments like crypto.
Second by market capitalization is Ether, which is the native token on the widely used Ethereum blockchain. Often colloquially referred to as Ethereum, ETH's market cap is around $200 billion and accounts for nearly 19% of the total cryptocurrency market. Unlike Bitcoin, Ether's underlying network is far more than just a tool for peer-to-peer payments; the Ethereum blockchain is custom-made for smart contracts and decentralized finance tools, as well as for so-called Web 3.0 applications and the trading of non-fungible tokens, or NFTs.
Unlike Bitcoin, whose only virtue is as a speculative asset and a store of value, Ether also has inherent utility as the native token of a wildly popular network. Plus, Ethereum's switch from the energy-inefficient proof-of-work protocol to the much more efficient proof-of-stake system gives it a leg up on BTC in an increasingly environmentally conscious world. ETH is up 40.4% in 2023 through March 13.
When investing in cryptocurrency, investors should understand that it's Bitcoin and Ether in their own tier, and then there's everything else, which is even more speculative. AVAX and the following altcoins on this list all have higher risk, and investors should factor that into their decisions. Caveats aside, the Avalanche network's AVAX token earns its place on this list by virtue of the ambitious goals of the Avalanche blockchain.
When excluding stablecoins, MATIC is now the seventh-largest cryptocurrency by market cap, with a capitalization of more than $10 billion. Still constituting only about 1% of the overall market size, Polygon has plenty of room to grow. That said, its future success is largely tied to the acceptance and ongoing usage of the Ethereum network. That's because the Polygon network is a scaling platform that aims to increase the capabilities of Ethereum, allowing it to eventually run a potentially limitless number of decentralized applications.
Like practically all other tokens, the MATIC price suffered in 2022, losing 70% of its value in the year. And like the other coins on this list, MATIC has been a beneficiary of the 2023 crypto bull market, surging 56.9% through March 13.
Founded in 2017 by Ethereum co-founder Charles Hoskinson, Cardano is a proof-of-stake blockchain and one of the largest blockchains to successfully run that more energy-efficient protocol. Cardano aims to foster a developer-friendly ecosystem for decentralized applications, or Dapps. Unlike Ethereum, Cardano has a hard cap on the number of coins that can ever exist, topping out at 45 billion. Thankfully for investors, more than 35.5 billion, or about 77%, of that supply is already in circulation, meaning the amount of overall dilution remaining is both known and relatively limited.
One of the best cryptocurrencies to buy now, Cardano shed 81% in 2022, but has clawed back some of those losses in recent months, posting a year-to-date gain of 39.8% through March 13. Excluding stablecoins, Cardano ranks fifth by market cap among cryptocurrencies, with a valuation of more than $12 billion.
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.
Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which ADA, its native coin, powers.
Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.
Binance USD (BUSD) is a stablecoin that Paxos and Binance founded to create a cryptocurrency backed by the U.S. dollar. To maintain this value, Paxos holds an amount of U.S. dollars equal to the total supply of BUSD. As with other stablecoins, BUSD gives traders and crypto users the ability to engage in transactions with other crypto assets while minimizing the risk of volatility.
To create supply, Bitcoin rewards crypto miners with a set Bitcoin amount. (To be exact, 6.25 BTC is issued when a miner has successfully mined a single block.). To keep the process in check, the rewards given for mining Bitcoin are cut in half almost every four years.
Sometimes the Mint makes mistakes. Although most error coins are recycled before they ever leave a Mint facility, the few that make it into circulation are often considered collectibles. Coins made before the invention of modern machinery show a variety of die, planchet, or striking errors. Examples include:
Coin clubs allow you to share your collection with others and learn more about coins. There are many national and local clubs and numismatic organizations. The American Numismatic Association provides a database of clubs around the world.
Many businesses already accept bitcoin as payment, which makes this cryptocurrency a smart investment. Visa, for example, transacts with bitcoin. And after a four-year cryptocurrency hiatus, Stripe, through its partnership with OpenNode, allows merchants to settle transactions and convert payments to bitcoin. The larger banks have begun to incorporate bitcoin transactions into their offerings, as well.
The value of bitcoin tends to fluctuate a lot. You may see the price go up or down thousands of dollars during any month. That certainly was true in 2022, as bitcoin prices correlated to the Nasdaq, as CNBC reported, challenging previous assumptions that bitcoin would serve as a hedge against inflation.
The Cardano network has a smaller footprint, which is appealing to investors for several reasons. It takes less energy to complete a transaction on Cardano than on a larger network like Bitcoin. This means transactions are faster and cheaper.
Polygon disclosed in late 2021 that it had patched a vulnerability that put about $20 million worth of its coins at risk, CoinDesk reported. A hacker discovered the exploit and notified Polygon, which had a fix in place within two days. However, black-hat hackers had already stolen over 800,000 tokens, leaving Polygon on the hook for about $1.4 million.
After the crash, Terra rebranded the original network as Terra Classic (LUNC) and launched Terra 2.0 (LUNA), a new blockchain without an algorithmic stablecoin, in an effort to stabilize the Terra ecosystem and help investors who lost money recoup some of their investment. LUNC coins trade separately from the LUNA coins that come with Terra 2.0.
The launch of Terra 2.0 was a controversial move, and industry watchers are undecided over its long-term viability. That said, several new projects have already launched on the new network, and its native coin may be worth watching if you have a high tolerance for risk.
Most cryptocurrencies today are derived in some form or another from Bitcoin, which uses open-source code and a censorship-resistant architecture. This means anyone can copy and tweak the code and create their own new coin.
Note: The timer on the payments page will display the amount of time you have to complete your payment. If time expires, you will need to restart the order process. If the order process is restarted, your alphanumeric or QR code, Dogecoin wallet address and/or the Dogecoin price might be updated.
Yes. The Dogecoin network charges network fees each time a payment is made in Dogecoin. Consult your Dogecoin wallet provider for information regarding additional fees. The purchaser is responsible for any fees associated with a Dogecoin transaction.
Allow one minute for the payments page to refresh after sending your Dogecoin payment. Do not attempt a new payment while the page refreshes. Once your payment is confirmed via the Dogecoin network, you will receive an Order Confirmation email.
Note: It can take up to six hours for the Dogecoin network to confirm your payment. If you do not receive a confirmation email from Tesla, contact your wallet provider. You might need to re-initiate payment. 59ce067264