What is the Best Cryptocurrency to Buy Right Now in 2024?

Cryptocurrency

Understanding the Cryptocurrency Market in 2024

The cryptocurrency market has matured tremendously since the early days of Bitcoin. By 2024, crypto has become more mainstream with increased public understanding and acceptance. However, it still represents tremendous upside potential for investors.

In 2024, the total crypto market cap has swelled to over $2 trillion. Bitcoin remains the leader representing 40% market dominance. However, altcoins like Ethereum have reduced Bitcoin’s share from as high as 70% historically.

There is also increased diversification across various crypto sectors like decentralized finance (DeFi), non-fungible tokens (NFTs), and metaverse projects. This presents more choices for investors looking to buy cryptocurrency.

Top Performing Cryptocurrencies

Bitcoin (BTC)

As the first cryptocurrency, Bitcoin remains the industry leader in 2024. Its network effects, liquidity profile, and brand recognition give it an edge over upstart competitors.

Despite drawdowns over the years, Bitcoin has appreciated considerably long term. Investing even a small portion into BTC as part of a diversified crypto portfolio is likely to be profitable over time.

Ethereum (ETH)

Ethereum is much more than a cryptocurrency as its programmable blockchain allows developers to build decentralized apps on it. As the adoption of these apps grows, Ethereum benefits tremendously.

By 2024, Ethereum has successfully transitioned to a proof-of-stake consensus keeping it environmentally friendly and scalable. This unlocks greater functionality and drives up ETH demand.

Binance Coin (BNB)

As the native token of the popular Binance crypto exchange, BNB benefits from growing trading volumes as crypto goes mainstream.

BNB also powers various DeFi and metaverse projects in the Binance ecosystem giving real utility value. With Binance dominating the crypto exchange space, BNB makes a compelling investment.

Key Factors To Consider When Investing

Technology Behind the Crypto

The technical capabilities and rate of development on a blockchain dictate its potential. Investing in networks with strong technology that enables new applications is key.

Ethereum’s move to proof-of-stake and Cardano’s research-driven approach are examples of strong technological foundations.

Development Activity

An active community of builders creating utilities like DeFi and NFTs on a blockchain results in greater adoption.

Analyzing developer activity metrics helps determine which networks show promise vs. which are stagnant and lacking real-world usage.

Mainstream Adoption Potential

As cryptocurrency penetrates the mainstream, certain coins will stand out and grab increased mindshare. Bitcoin enjoys strong brand recognition even with non-crypto people.

Coins that successfully market themselves and see surging adoption among institutions have a high investment upside.

Staking and DeFi Applications

DeFi and staking boost demand for coins as people invest them to earn attractive yield opportunities. Robust DeFi ecosystems have the potential to drive tremendous crypto demand.

Security Protocols

Technical vulnerabilities or hacks can severely impact the price and adoption of cryptocurrencies. So reviewing the security architecture and track record of blockchains is important before investing.

How To Buy Cryptocurrency

Here are the basics of investing in crypto:

Choose an Exchange

Research and select a well-known exchange like Coinbase or Binance that offers the altcoins you want at reasonable fees.

Fund Your Account

You can fund your crypto exchange account with fiat currency like USD from your bank account. The most common methods used are wire transfers and ACH payments.

With wire transfers, you instruct your bank to send USD funds directly to the exchange’s bank account. The money is usually available in your exchange account within 1-3 business days. Wire transfers tend to have higher fees but are faster.

ACH payments connect your bank account to the exchange for easy transfer of USD funds. By authorizing the link, you can conveniently move money between accounts. ACH transfers are cheaper but slower, often taking 3-5 business days to reflect.

Both wire and ACH transfers only work for depositing USD or other fiat currency. You cannot directly transfer crypto assets using traditional bank rails. Most mainstream exchanges like Coinbase and Gemini offer both funding options.

When getting started, it’s recommended to use ACH for lower cost and wire occasionally when you need funds available quicker. Just ensure your bank account supports sending USD internationally in case the exchange uses an overseas banking provider

Place Your Order

Once your account is funded, you can start buying cryptocurrencies on the exchange. The process is similar to stock investing.

First, enter the ticker symbol of the crypto asset you want to purchase, like BTC for Bitcoin or ETH for Ethereum. Next, input the dollar amount or quantity of coins you wish to buy.

You can choose market orders to purchase at current prices or set limit orders to define your desired entry price. Market orders get filled quickly but you may overpay if volatility strikes right then.

After reviewing the transaction details including fees, submit your crypto buy order. Within seconds, you should see your newly purchased digital coins reflected in your exchange account, citation:

Now you can choose to transfer the coins to your crypto wallet for safety. Or keep them on a reputable exchange if you plan on actively trading. That covers the basics of investing in cryptocurrency.

The Future of Cryptocurrency Investing

Increased Institutional Investment

By 2024, increased involvement from institutional investors like hedge funds, pensions, and endowments have cemented crypto as a new institutional asset class.

Their substantial inflows greatly expand the overall capital base for cryptocurrencies, supporting higher valuations long-term.

Government Regulations

Favorable regulations that provide legal clarity plus security without stifling innovation could catalyze tremendous growth by 2024. The more regulatory certainty, the more confident both retail and institutional investors will feel in allocating funds to crypto.

Conclusion

Cryptocurrency remains an exciting, high-upside area within fintech still in its early innings. By picking the most promising blockchain projects with staying power, investors stand to generate tremendous wealth over the next decade as adoption truly ramps up. Following the prudent crypto investment principles outlined here can help stack the odds in your favor.

FAQs

Q: Is it too late to invest in crypto in 2024?

A: No, despite growth so far, cryptocurrency penetration remains under 3% globally in 2024. With increased mainstream acceptance, crypto investing still offers a huge upside in 2024 and beyond.

Q: How much of my portfolio should I allocate to crypto?

A: Financial advisors suggest limiting crypto exposure to 3-5% of your total portfolio allocation due to volatility. However, more aggressive investors may allocate up to 10% to digital assets for the growth potential.

Q: Are altcoins riskier than buying Bitcoin?

A: Generally, altcoins like ETH and BNB carry more risk than market leader Bitcoin. However, certain large-cap altcoins have delivered outsized returns historically despite higher volatility.

Q: What is the easiest way to start investing in crypto?

A: The easiest way to invest in crypto for beginners is to open an account on a mainstream exchange like Coinbase. Fund your account via bank transfer and simply buy crypto similar to stocks.

Q: Will cryptocurrency make me rich quickly?

A: No investment can guarantee quick riches. However, crypto does offer the potential for significant wealth creation over longer timeframes for investors who take the time to educate themselves and invest prudently

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