The first Bitcoin transaction dates back to 2010 when a man paid 10,000 Bitcoin for two pizzas. At the time, it was only worth $40, but today it would have been worth $190 million! Knowing how much your crypto is worth and understanding the best investment strategies is vital. If you don’t know, hiring someone who does is crucial. Many are turning to cryptocurrency hedge funds for help with this. But before you begin, knowing the best cryptos to invest in is crucial.
So which are the best to put your hard-earned money toward? While it might seem scary to choose, it doesn’t have to be. Read this guide on the best cryptos to invest in today.
No list is complete without one of the most popular cryptos, Bitcoin. The supposed father of Bitcoin is Satoshi Nakamoto.
In 2008, he created the first cryptocurrency. In 2011, he wrote a farewell letter to another Bitcoin developer. Unfortunately, he hasn’t been heard from since.
While no one knows Satoshi Nakamoto’s identity, Bitcoin’s value today is at over $325 billion. They believe Nakamoto owns over one million Bitcoins.
Like other cryptocurrencies, it runs on a blockchain. Bitcoin is safe from fakes because additions to the ledgers must receive verification by solving complex puzzles. While last year its value fell, this year it’s steady.
Tether is backed by fiat currencies like the U.S. dollar and the euro. Its value is equal to those as well.
Due to this, its value is supposed to be more consistent than other crypto. It’s a top pick for investors who are nervous about crypto’s volatility.
iFinex owns Tether, which is a Hong Kong company. They also own the crypto exchange BitFinex.
It’s backed by Tether’s reserves and is pegged to the U.S. dollar. Initially based on the Bitcoin blockchain, it now supports Liquid protocols and Bitcoin’s Omni.
It’s a large cryptocurrency and falls right after Ethereum and Bitcoin. It’s one of the largest stablecoins available.
Ethereum is both a blockchain platform and a cryptocurrency. Developers like it due to its potential applications.
Smart contracts, including non-fungible tokens (NFTs), can execute when it meets certain conditions. While last year crypto has decreased in value, it has rebounded.
Whoever would like to have a secure digital technology can use it. You can use it to pay for goods and services as well as work done on the blockchain.
It’s designed to be decentralized, secure, programmable, and scalable. Ethereum is a popular choice for enterprises and developers.
Ethereum supports decentralized applications and smart contracts. Smart contracts use blockchain technology.
A Binance Coin (BNB) allows you to pay fees and trade on Binance. Binance Coins can complete payment processing, trading, and booking travel. You can also exchange it for other forms of cryptocurrency.
The Binance Coin is from the Binance exchange, which is one of the largest cryptocurrency exchanges.
First as a utility token for discounted trading fees, but now it does so much more. It initially ran on the Ethereum blockchain but is now on the Binance chain.
While initially, there were millions of Binance tokens; the current supply is low. Every quarter, Binance uses its profits to destroy some of the Binance coins.
Solana powers decentralized finance uses and smart contracts. It runs on both a proof-of-history and proof-of-stake mechanism.
Its processes are secure and fast. SOL is Solana’s native token on the platform.
Solana is much quicker and has lower transaction fees than other blockchains. The Solana blockchain uses the token Solana.
It uses hashed timestamps to verify when transactions happen. Solana aims to eliminate the need for software when it’s combined with blockchain.
The proof-of-stake allows transactions to receive verification and timestamps fast. It also allows transactions to receive verification based on how many tokens or coins they hold.
Litecoin is an open-source blockchain project perfect for a cryptocurrency fund. Its initial code imitated Bitcoin’s.
While it’s similar to Bitcoin, it has a quicker transaction confirmation time. You can pay people worldwide without a mediator.
Litecoin is one of the oldest cryptocurrencies. It was created for low-cost payments that are secure and quick.
It was made to improve Bitcoin. Bitcoin has a slow transaction processing speed which means it takes longer to create new blocks.
This slower speed bothers merchants who want to use Bitcoin as payment. Litecoin’s processing speed is much quicker. This means merchants can receive payments faster.
Avalanche’s subnets allow users to have their own mini-blockchains on its network. Since many entities will want their own blockchain, Avalanche could allow this. While it decreased in 2022, this year, it’s seeing an increase.
Avalanche competes with Ethereum. While many protocols require layer-2 solutions, Avalanche wants to work around that.
It has a layer-1 instead. It uses three blockchains to allow this. The chains include C-Chain, P-Chain, and X-Chain.
X-Chain creates and transacts crypto assets. It’s also the native token of the Avalanche network.
P-Chain allows you to create layer-2 and layer-1 blockchains. They’re known as Avalanche subnets.
P-Chain is the default subnet. It keeps track of validators and validates the P-Chain.
C-Chain is where you can find contracts. It’s compatible with Ethereum as well. Developers can use Ethereum smart contracts on Avalanche.
This makes it easy for Ethereum apps to use new versions on Avalanche. This means developers can use Ethereum tools along with Avalanche features.
While the Cardano network has a small footprint, that’s attractive to investors. A smaller footprint means it takes less energy to complete a transaction overall. This equates to transactions being more affordable and quicker.
Cardano now has a smart contract deployment. It also has Vasil, which should help with Cardano’s scalability.
It also has a platform called AdaSwap which allows developers to build decentralized finance apps. This could increase the price of the coin. While Cardano is lower on the level in regards to market value, it’s one of the top non-fungible-token protocols.
Terra 2.0 (LUNA)
The Terra blockchain used stablecoins. Stablecoins are coins pegged to fiat currencies such as the South Korean won, the U.S. dollar, etc.
Its native coin stabilized the prices of the stablecoins. Today, it has a Terra 2.0 (LUNA).
This new blockchain doesn’t have an algorithmic stablecoin. It’s in the hope of stabilizing the Terra ecosystem and helping investors who have lost money to recoup some of their investment.
Keep in mind that Terra 2.0 is newer, so its long-term viability is in question. If you have a high tolerance for risk, it might be worth watching.
Chainlink uses a decentralized oracle network for secure interactions. It uses both external data feeds and blockchains.
Chainlink also uses payment methods and events that developers hope will allow smart contracts. Developers hope that smart contracts will become the main form of digital payments.
Chainlink works since it’s in partnership with Google. Google uses its protocol to connect users to its cloud services.
It’s also the choice for the decentralized finance company, Truflation. Chainlink is a top pick for the new inflation index. It’s considered an alternative to the Consumer Price Index.
While the Consumer Price Index uses survey data, Truflation uses data points from various sources to measure inflation more accurately.
Tezos is a competitor of Ethereum. Tezos has launched to have a dominant platform for smart contracts and decentralized applications.
It has a platform to build digital decentralized applications. While the blockchain network is Tezos, the digital token is called Tez (XTZ).
Another name for the digital token is tezzie. Similar to other blockchains, it uses non-fungible tokens (NFTs), decentralized applications, and decentralized finance.
It precludes blockchain splits (hard forks) using a blockchain-based mechanism that implements protocol upgrades chosen by voting based on users’ economic stakes in Tezos.
Staking in the Tezos network is known as a roll. It allows you to operate a network node to earn a large share of Tez rewards for validating blockchain transactions.
Nexo uses the first instant crypto-backed loans. It’s powered by Credissimo, a European FinTech group with years of experience.
If you’re looking to have equity in crypto, then go with Nexo. When you collateralize your crypto, that’s when loans are created.
Nexo supports 40+ coins and hundreds of jurisdictions. It also gives dividends that are even higher than S&P 500 companies.
VeChain wants to have a distributed business ecosystem that’s scalable. They use blockchain technology solutions across various industries, including agriculture, liquor, and luxury goods.
VeChain now has its own blockchain, which is continuing to be developed. It goes beyond the Proof-of-Concept level and can be found across the globe.
It’s an advanced technology that provides solutions to data management. It helps to stop fake assurance, data manipulation, fraud, and counterfeit problems. You can use VeChain Thor tokens to cover transaction fees.
It has a semi-decentralized model with centralized channels and a decentralized system. This is to make it efficient.
It also has quality control. Quality control allows it to have high product standards in the supply chain.
It’s important to keep in mind that it doesn’t have a complete decentralization which could be a disadvantage. This means that it can’t be cut off from third-party influence.
It also relies on Proof of Authority. Since there’s fast growth which could be a good thing, you need to have a clear goal and proper guidance.
Bancor is a blockchain protocol that tries to incentivize users to lock crypto assets into pools. These pools work in exchange for a share of the fees paid when they are bought and sold.
It’s trying to use an Automated Market Maker. This is a mechanism that’s designed to provide liquidity to markets. It doesn’t require a financial institution to manage it.
It’s built to use Ethereum and EOS. In the future, more blockchains could be compatible with it. Bancor V2 has improvements for both users and traders.
When each token is traded, it’s used as an intermediary currency. You can use a single token in one of its pools instead of having to use a pair. Whereas in other platforms, you usually have to use pairs of tokens.
How To Choose The Best Cryptos
First, take a look at the track record of each crypto before investing. If it’s been around for years, then that’s a good sign. See how the company that created it has performed over the years.
Next, determine the technical aspects and whether it has strong security and usability. The network needs to handle transaction traffic easily.
Check the security of the investments. Blockchain technology is easy to track and transactions are transparent.
Lastly, see how many are investing in the cryptocurrency you’re considering. Large amounts could mean selling and trading will be easier. Before investing, it’s vital to do plenty of research on crypto and the current market.
Defining the Best Cryptos to Invest In
This guide provides a breakdown of the best cryptos to invest in. Of course, this can change over time.
It’s vital to check the market before investing. One of your best options is to work with a cryptocurrency hedge fund. This way, you receive support with building your portfolio and investing in crypto safer.
Are you ready to get started? Then contact us today!
Here at TrueCode Capital, we aim to improve on the results that family wealth managers would achieve independently. We use an algorithmic trading system and pick cryptocurrency to predict the growth of the market overall.