Best cryptocurrencies to invest in 2024

8 February 2024 - 17:00

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What are the best cryptocurrencies of 2024? Here is the ranking by market capitalization and performance updated in February.

Best cryptocurrencies to invest in 2024

What are the best cryptocurrencies to invest in 2024? With the recent fall of Bitcoin, falling from the highs above $45,000 to the resistance of $40,000 - the entire crypto sector is once again in difficulty.

The ranking of the best cryptocurrencies based on market capitalization provides interested parties with a general idea of the most solid and reliable cryptocurrencies the highest value, on which other investors have already bet.

However, this ranking is not exhaustive. It is also useful to consider the ranking of cryptocurrencies that have recorded the highest growth in the last 30 days, regardless of market capitalization. This allows us to identify peaks of interest not only in major cryptocurrencies but also in smaller cryptocurrencies that have seen significant growth over the past month.

Ranking of the best cryptocurrencies 2024

The crypto market is made up of thousands of cryptocurrencies, from large and well-known virtual currencies - such as Bitcoin, Ethereum, and Tether -, to cryptocurrencies whose notoriety has skyrocketed only in recent years - see Dogecoin, Avalanche, and USD Coin - and others that are relatively unknown, but they may hold some surprises in the future.

To understand which cryptocurrencies are the best to invest in, one must first keep an eye on their quotations. This will help identify the main cryptocurrencies that hold the most value. Investing in these cryptocurrencies requires careful evaluation, as the sector comes with its own set of risks.

We begin the research of the best cryptocurrencies in the world by investigating the cryptocurrencies with the highest capitalization in January 2024. Market capitalization, or market cap, means that value - expressed with the market standard, in dollars - is obtained by multiplying the current price of the cryptocurrency by the total quantity of the same cryptocurrency available on the market at the same time.

For example, if one Bitcoin is worth 43,438 dollars and there are 19,619,093 Bitcoins in circulation, then the market capitalization of Bitcoin today is approximately 851.54 billion dollars. The ranking of the 10 best cryptocurrencies in the world by market capitalization, updated in February 2024, shows how the recent uncertainty in the sector following the approval of the first Bitcoin ETFs is impacting prices and, consequently, on the market cap.

|Ranking|Cryptocurrency Name|Price|Market Capitalization| |1|Bitcoin (BTC)|$43,384.04|$851,155,516,413| |2|Ethereum (ETH)|$2,326.76|$279,637,671,769| |3|Tether (USDT)|$0.9994|$96,177,243,733| |4|BNB (BNB)|$302.52|$45,240,245,367| |5|Solana (G)|$98.32|$42,887,792,405| |6|XRP (XRP)|$0.5081|$27,660,573,654| |7|USD Coin (USDC)|$1.00|$27,111,035,447| |8|Cardano (ADA)|$0.5042|$17,866,904,726| |9|Avalanche (AVAX)|$35.75|$13,129,523,050| |10|Chainlink (LINK)|$19.44|$11,415,105,363|

Compared to January, the ranking of the best cryptocurrencies in 2024 undergoes several changes: Solana goes from fifth to fourth place, giving way in favor of BNB. Chainlink climbs to tenth position, taking Dogecoin out of the top 10 of the highest capitalization cryptocurrencies in the world.

1. Bitcoin

Bitcoin is the first decentralized cryptocurrency that has become popular globally. The concept of Bitcoin was described for the first time in a white paper published at the end of 2008 by Satoshi Nakamoto, who has since passed away.

Bitcoin promises to revolutionize the international currency payment system by eliminating the intervention of the government, central banks, and financial intermediaries. Bitcoin is not minted by the State or a central bank but by the network nodes that keep track of transactions in the blockchain. It is therefore a decentralized and completely democratic payment system.

Since Bitcoin was the first major cryptocurrency, all digital currencies created afterward are called altcoins or alternative coins. One of the advantages of Bitcoin is that it can be stored offline on the local hardware of the person who bought it. This process is called cold storage and protects the currency from the risk of being stolen.

The idea behind Bitcoin is to create a currency independent of any type of authority that allows electronic payments to be made globally without controls, instantly and anonymously. The price of Bitcoin surpassed $100 for the first time in April 2013 and since then the cryptocurrency has continued to gain notoriety and value. The enthusiasm became increasingly stronger at the beginning of 2017 when Bitcoin surpassed $1,000. Its rise took a break and then resumed quickly at the end of 2020, inaugurating a path that will lead Bitcoin to reach its absolute highs on November 10, 2021, when it reached $67,000.

From there the decline began: the price collapsed to $16,000 in response to the sector crisis triggered by the failure of the FTX exchange. After recovering just above $30,000, today the price is just under $26,000.

In February 2024, Bitcoin confirms itself as the undisputed protagonist of the ranking of the best cryptocurrencies by market capitalization. After the approval of the Bitcoin ETFs, the market is now focusing on the halving Bitcoin, expected in April 2024.

2. Ethereum

Ethereum is a platform based on blockchain technology, best known for its cryptocurrency, or native token, Ether (ETH), also called Ethereum.

The blockchain on which Ethereum is based can support many other cryptocurrencies and applications, as well as NFTs. Network users can create, publish, monetize, and use a wide range of decentralized applications. The Ethereum project dates back to 2013 from the idea of Vitalik Buterin, a Russian boy born in 1994 who lived in Canada, who officially launched the platform in 2015 together with Joe Lubin, founder of the blockchain software company ConsenSys. Ethereum works through a blockchain, where all operations carried out are stored in a public register. Each new block must be validated by the other users participating in the platform before registration. The Ethereum network is characterized by a decentralized virtual computer, also known as EVM (Ethereum Virtual Machine).

To function, the network needs (real) computers kept constantly switched on, which gives part of their computing power to the network. In turn, computers need to acquire energy to perform their function. The "fuel" of the platform is represented by Ether, essential for executing smart contracts. The price of Ethereum exceeded $100 for the first time in May 2017, in the wake of the Bitcoin rally. After reaching the then-historic high of $1,397 at the beginning of 2018, a long lateral phase is triggered for the cryptocurrency which will see an upward break decided only starting from autumn 2020, a period in which all the best cryptocurrencies on the market fly to levels record.

The all-time high on Ethereum was reached in November 2021 at $4,724, after which a physiological decline was triggered, exacerbated in autumn 2022 by the so-called "crypto winter", which brought the cryptocurrency dangerously close to $1,000 again. After benefiting from the bullish market phase inaugurated at the beginning of the year, which brought it to almost $2,000 in April 2023, in February 2024 Ethereum confirmed itself second in the ranking of the best cryptocurrencies by market capitalization, with a value of above $2,300.

3. Tether

Tether is a stablecoin, i.e. a digital currency that aims to be a stable substitute for a legal tender currency (fiat currency).

On the official website, the definition assigned to the cryptocurrency is the following: "Tether converts money into digital currency, to anchor or tie the value to the price of currencies such as the US dollar, the euro, and the yen".

It is possible to deduce the intended meaning of the digital currency from here, as per the project creators, "pegging the value of the cryptocurrency to the price of fiat currencies". The year Tether was founded dates back to 2014, even if the original idea was based on J.R.’s Mastercoin protocol. Willett, the inventor of ICO (Initial Coin Offering, the initial offer of cryptocurrency currency). Brock Pierce and Craig Sellars, respectively official member and CTO of the Mastercoin Foundation, are the co-founders of Tether, joined by Reeve Collins, co-founder of SmartMedia Technologies.

In the beginning, the Tether cryptocurrency was known by the name of Realcoin, as if to immediately underline the difference with other cryptocurrencies. Four months after the founding act, Realcoin was replaced by Tether (₮). The first tokens were issued on the Bitcoin blockchain in October 2014, three months after the official birth. As a stablecoin, the price of Tether has not changed much since its birth: always remaining around the value of one dollar, the historical minimum was reached in March 2015 at $0.6051, while the absolute maximum it was reached in May 2017 at $1.0432, in the wake of the well-known cryptocurrency rally of that period. As of February 2024, Tether is third in the ranking of the best cryptocurrencies by market capitalization.

4. BNB

Binance Coin (BNB) is Binance’s ERC20 token, a trading platform that performs a dual function: as an exchange it allows users to exchange cryptocurrencies and profit from them, but it can also be used as a virtual wallet (in jargon "wallet") in which to store their cryptocurrencies. By daily transaction volumes, Binance is the largest exchange in the world. The success of cryptocurrency depends on its exchange platform and Ethereum (ETH) blockchain technology, on which it relies.

The two coins share the same consensus algorithm, called Proof-of-Stake (POS), which has the task of confirming the operations performed. Binance Coin was launched in 2017 as an exchange coin for use on Binance with a market value of around $1.27. After a gradual growth in the following years which led the cryptocurrency to close 2020 at $38.95, BNB flies with the crypto rally starting from the beginning of 2021, reaching its all-time high at $676.35 in May of the same year. After a highly volatile 2021, a decline was triggered which brought BNB back below $200, before recovering to current levels, above $300.

5) Solana

SOL, the token that acts as the cover for the Solana project, has aroused the interest of the public for the gears of the underlying blockchain technology, which favors cyclical price pumps.

Solana relies on a Proof of History consensus algorithm, which according to what the developers themselves declared should solve the age-old problems related to the veracity of timestamps. The low costs, with fees of less than a thousandth of a dollar, have even led Tether to issue its stablecoins on Solana.

Solana is a third-generation blockchain based on layer 1, boasting high-performance on-chain. It presents itself as a potential alternative to Ethereum, which is still a leader in the decentralized finance segment.

After entering the market at $0.95 in May 2020, Solana’s price gradually approached $4 dollars to channel itself into a bullish trend at the beginning of 2021, which gained strength in the summer until reaching historic highs at $248. 36. The correction during the crypto winter is inevitable and SOL returns well below $100. It’s currently about $71. Solana fell from fourth to fifth position in the ranking of the best cryptocurrencies by market capitalization as of February 2024.

6. XRP

Ripple (XRP) is a digital currency in circulation since 2013 and its protocol was created by OpenCoin, founded in turn by Chris Larsen and Jed McCaleb. The purpose of Ripple, as stated by its creators, is to eliminate and overcome the difficulties and disadvantages of Bitcoin, so later we will try to highlight all the differences between the two virtual currencies.

The idea behind Ripple is that of the P2P monetary system: the aim is to eliminate or in any case lower the intermediation costs on financial transactions (the costs for example deriving from the intermediation of a bank or a credit card credit). After entering the market at $0.0059, Ripple managed to exceed a value of 2 cents in the spring of 2017.

Having reached an all-time high at the beginning of 2018 at $3.1178, the price of the cryptocurrency began to fall inexorably until it reached below 20 cents in 2022. The bullish trend of spring 2021, which brings Ripple back to $1.75, the price drops below the dollar again, reaching current levels around 50 cents. In November 2023 federal judge Analisa Torres of the Southern District of New York ruled against the Securities and Exchange Commission’s belief that XRP is a security. Shortly after the ruling was released, the price of XRP surged more than 75% to a one-year high of $0.93.

7. USD Coin

Just like Tether, USD Coin (USDC) is a stablecoin, i.e. a digital “coin” anchored to a stable reserve asset. Its value is linked to that of the US dollar and therefore tends to undergo smaller fluctuations than traditional cryptocurrencies on the market (such as Bitcoin).

USDC was born thanks to a collaboration between Circle and Coinbase and has been in circulation since September 26, 2018. USD Coin tokens can be converted back into dollars at any time, making their use quite convenient. The issuance and redemption of the coin are guaranteed by the ERC-20 smart contract.

Being a token based on the Ethereum blockchain, USD Coin can be stored in all Ethereum-compatible wallets. After a debut on the market at $1.0043, until the spring of 2019 USD Coin showed a decent trend with peaks above $1.01, and then inaugurated a bearish trend interrupted by the historical highs at the beginning of 2020 at $1.034. From that moment, a lateral phase begins which causes the price of USD Coin to fluctuate just above or just below $1, during which it reaches historic lows at $0.9638 (March 2023).

As of February 2024, USD Coin is in seventh place in the ranking of the best cryptocurrencies by market capitalization.

8. Cardano

Cardano was launched in 2017 and is a decentralized public blockchain, from which the ADA token is issued. The project was born in 2015 after its founder, Charles Hoskinson, was removed from the Ethereum founding team due to a difference of opinion with Vitalik Buterin: Hoskinson considered Ethereum a for-profit project while for Buterin it should be developed from a non-profit perspective -profit.

Cardano uses the proof of stake protocol as a consensus algorithm for confirming transactions: it therefore does not require miners, as happens for example with Bitcoin which uses the proof of work protocol, which is more expensive in terms of electricity. Cardano is therefore eco-sustainable and consumes less electricity than cryptocurrencies that have adopted the other protocol. After a quiet entry into the market at 0.025, Cardano rocketed to an all-time high of the time in January 2018, touching 1 dollar ($0.997), and then channeled into a lateral phase throughout 2019 and 2020.

A new bullish sprint arrives at the beginning of 2021 when the token reaches all-time highs at $2.92. In recent months the price has moved between 20 and 40 US cents. As of February 2024, Cardano is in eighth place in the ranking of the best cryptocurrencies by market capitalization.

9) Avalanche

Avalanche is a cryptocurrency and blockchain platform. AVAX is the native token of the Avalanche blockchain. This, like Ethereum, uses smart contracts to support various blockchain projects. The project appears to be in direct opposition to Ethereum.

Launched in 2020, Avalanche’s goals are speed, safety, versatility, convenience, and accessibility. It is an open-source project, meaning anyone can view and contribute to the platform’s code. The Avalanche blockchain manages to validate transactions very quickly. AVAX is used to pay transaction processing fees, secure the Avalanche network, and serve as the underlying unit between blockchains in the Avalanche network.

Avalanche is governed by the proof-of-stake mechanism. AVAX holders are required to stake (agree not to trade or sell) AVAX in exchange for the right to validate AVAX transactions. AVAX holders with the most stakes and who actively participate as validators are the most likely to be chosen for Avalanche blocks.

Additionally, you must also hold AVAX tokens to vote on Avalanche governance proposals. After a long bullish phase - which lasted from August 2021 to May 2022 - during which the price reached historic highs around $135, the price fell and stuck in a lateral range. In mid-November, however, the price began to rise again, going from 19.14 dollars to the current 40.40, more than doubling its value.

Avalanche, like other cryptocurrencies such as Solana and Cardano, is currently rising sharply thanks to the ongoing altcoin boom, triggered by the recent surge in Bitcoin.

Chainlink is a blockchain platform that aims to connect smart contracts with external data sources in a secure and reliable manner. By acting as an “oracle” to feed external data into the blockchain, Chainlink allows smart contracts to access real-world information.

This ability to connect with external data sources makes Chainlink extremely versatile and powerful for a wide range of applications. As a cryptocurrency, Chainlink uses blockchain technology to ensure security, transparency, and decentralization of transactions.

This means that the transactions performed are secure and verifiable, without the need for intermediaries.

Ranking of the best cryptocurrencies by performance

The ranking of the main cryptocurrencies on the market by capitalization, however, does not provide a complete picture of what is interesting happening in the entire sector.

Some cryptocurrencies experience significant market jumps due to their cyclical nature, but have low capitalization due to limited supply and token worth. Although these reasons are the same behind the very high volatility on the market, it is useful to evaluate the best cryptocurrencies in February 2024 based on their performance in the last 30 days.

Here is the ranking of the cryptocurrencies that have risen the most in the last 30 days regardless of their market capitalization, updated as of February 5, 2024.

|Ranking|Cryptocurrency Name|Price |Var.% 30 days| |1|Pendle (PENDLE)$3.07|136.49%| |2|Flare (FLR)|$0.03242|83.99%| |3|Pyth Network (PYTH)|$0.4949|83.06%| |4|Sui (SUI)|$1.61|82.95%| |5|Ronin (RON)|$2.97|60.47%| |6|Chainlink (LINK)|$19.52|43.75%| |7|Helium (HNT)|$7.28|38.63%| |8|Frax Share (FXS)|$10.61|30.97%| |9|Blur (BLUR)|$0.5934|30.16%| |10|Chiliz (CHZ)|$0.1009|29.28%|

What are cryptocurrencies

The cryptocurrency market was born in 2009 after the launch of Bitcoin. A cryptocurrency is an encrypted decentralized digital currency that can be transferred from one individual to another. Since the launch of Bitcoin, many other players have joined the market, first and foremost Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).

More specifically, a cryptocurrency is a digital payment system that does not require verification of transactions by banks. It is a peer-to-peer system that potentially allows anyone, wherever they are, to send and receive payments. Unlike physical money, which can be exchanged and transported around the world, cryptocurrency payments exist purely as “digital entries” transcribed within an online database that captures specific transactions. When cryptocurrency funds are transferred, the transactions are recorded in a public ledger.

Cryptocurrencies get their name from the fact that cryptography is used to verify transactions, i.e. advanced coding is used to store and transmit data between wallets and public records. The advantages of encryption mainly concern aspects of security and data protection.

How to choose the best cryptocurrencies

Given the presence of many cryptocurrencies on the market, it is difficult to understand which are the best and which to focus on.

Many new cryptocurrencies launched on the market are advertised as "the next Bitcoin," but often lack fundamentals to support this claim. Here are some valuable suggestions to help you choose the best cryptocurrencies:

  • risk factor: there are over 2,300 cryptocurrencies on the market today, and among all, Bitcoin is not only the most volatile but also the most "stable". For many experts, buying Bitcoin is considered a "safe bet" because it is the crypto with the longest history on the market. However, it is essential to minimize the risk by diversifying the investment, for example by also focusing on stablecoins.
  • constant monitoring: choosing and understanding which are the best cryptocurrencies and altcoins can be difficult, which is why observing events objectively and avoiding making emotional decisions can be crucial. After selecting the best cryptocurrency to invest in, it is advisable to continue to carefully monitor your portfolio, paying attention to all the news regarding your investment. Altcoins may not bring with them the same meteoric growth as Bitcoin but choosing the right cryptocurrency to invest in can lead to profitable returns.
  • independent research: if on the one hand, it is important to listen to the statements of those who represent a crypto project and the opinion of other users, nothing will ever beat the judgment that comes from your own independent research. It is unthinkable to buy Bitcoin or Ethereum, for example, without first observing their historical graphs. Other data to pay attention to are the quantity of tokens in circulation and the market capitalization. Although the price is important, in fact, it is not the only factor to take into consideration. In fact, it is essential to investigate the stability of the cryptocurrency and its entire history.

Original article published on Italy 2024-02-05 15:38:30. Original title: Criptovalute migliori 2024: la classifica (aggiornata a febbraio)


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