Cryptocurrencies reached record highs last year but have been caught up in a whirlwind so far this year. The crypto market has come of age during the pandemic, with it finally gaining traction with institutional investors. With the market maturing, it is imperative to invest in cryptos with a long-term growth runway. Hence, the best cryptos to buy are those with real-world utility and a solid track record of innovation.
It’s been several years since Bitcoin (CCC:BTC-USD), which has become the most popular cryptocurrency in the world, hit the scene. Despite its legendary status in the industry, it isn’t the final word on cryptocurrencies. Several offshoots, spinoffs and other new names have emerged in huge numbers, posing a threat to Bitcoin’s supremacy. At this point, there are over 7,000 cryptocurrencies to choose from. The article sheds light on seven of the best ones to invest in during the month of July.
- Bitcoin (CCC:BTC-USD)
- Ethereum (CCC:ETH-USD)
- Litecoin (CCC:LTC-USD)
- Tether (CCC:USDT-USD)
- Stellar Lumens (CCC:XLM-USD)
- Binance Coin (CCC:BNB-USD)
- Cardano (CCC:ADA-USD)
Best Cryptos to Buy: Bitcoin (BTC-USD)
Bitcoin, in many ways, is the crypto industry in a nutshell for most investors. Created in 2009, the digital asset has revolutionized the financial world and become a household name.
The crypto had an incredible bull run from 2015 to 2017, but its price later tanked, with many fearing its end. However, Bitcoin bounced back last year and has delivered gains of over 260%. Despite the regulatory challenges and competition, it has an unmatched growth runway ahead.
BTC has pulled back sharply of late due to the regulatory crackdowns by various governments, especially China. Moreover, there have been discussions about whether it’s bad for the environment, with its massive energy consumption. However, due to the crypto’s widespread popularity and utility, these concerns are likely to abate over time.
Bitcoin will continue flying high for the foreseeable future and in all likelihood will cross $100,000 by the end of this year.
Ethereum is the second-largest cryptocurrency by market capitalization at $269 billion. ETH has shot up over 854% over the past year, significantly higher than BTC.
In fact, with multiple growth drivers, it has the most compelling bull case in the industry. This is primarily driven by its upcoming ETH 2.0 upgrade, which will play a critical role in expanding decentralized finance (DeFi).
The upgrade is expected to be rolled out by 2022 and marks the evolution of the platform from a proof-of-work model to a proof-of-stake model. The core objectives of the update involve making the platform more efficient, robust and secure.
Moreover, it will facilitate the expansion of DeFi projects, which will continue to grow at an aggressive pace. With its upcoming upgrade and pertinence in the DeFi realm, it could potentially knock Bitcoin off its perch.
Litecoin is one of the most valuable cryptos in the industry, with a market cap of over $9.2 billion. It was created through a fork in the Bitcoin blockchain and is one of the oldest cryptos in the market. It has gained an incredible 215% in the past 12 months. However, it has stumbled quite a bit of late. In the past week, though, LTC has shown signs of a rebound, which indicates a reversal of its fortunes.
Similar to BTC, LTC is open-sourced and highly decentralized. Additionally, it is also quicker than BTC, as it takes only 2.5 minutes per transaction, rather than nine minutes. Its transactions are also at least 40% cheaper than Bitcoin.
However, it’s been an uphill battle to maintain its market share and brand equity. It would be tough for it to outperform the industry stalwarts, but it does have a long-term case due to its unique features and value to its users.
Tether is a crypto that doesn’t attract much attention compared to its peers. However, it boasts a market cap of over $62 billion and is the third most valuable crypto in the world.
It’s different from its peers, as it’s a stable coin. It is pegged to fiat currencies, such as the Euro and the U.S. dollar. Therefore, it interests those investors who want to avoid the volatility that comes with investing in cryptocurrencies.
Tether is used more like a store of value and an exchange medium rather than a speculative investment. With USDT backed by fiat currencies, investors can add much-needed stability to their crypto portfolios.
Stellar Lumens (XLM-USD)
Stellar Lumens is one of the most promising DeFi projects in the crypto world. It has a market cap of over $6 billion and has grown by over 260% in the past 12 months. It has done incredibly well to build a utility for its users as a cross-border payment platform.
Ultimately, the goal for XLM is to integrate and work alongside the traditional banking system. Such a lofty ambition will ensure that it continues to grow at a healthy pace for the foreseeable future.
Steller is aggressively investing in its platform and the expansion of its objectives. The Stellar Development Fund (SDF) invested a massive $750,000 Nigerian fintech company Cowrie, in building a platform for the local public for cross-border payments. Earlier this year, it signed an agreement with the Ukrainian government to help them develop what will be a national digital currency. It also launched a robust new update called Horizon 2.0, which will boost the network’s efficiency and flexibility.
Binance Coin (BNB-USD)
Binance Coin more than doubled in 2020 and has risen 733% since January. BNB has benefited immensely from its integrations with the Binance exchange. For instance, there is the Binance Chain, which allows several different blockchain applications to be hosted. Moreover, there is Binance Earn, which has pooled together various passive earning services and products for Binance users. With new developments up its sleeve, BNB will continue posting strong returns for its owners for the foreseeable future.
In many ways, Binance Coin is a no-brainer crypto investment, as it is directly supported by the world’s top crypto exchange. The exchange sees billions of dollars’ worth of crypto trades each day. With the support from the largest exchange and several new products on the horizon, BNB’s bull case will continue to get stronger over time.
Cardano is an energy-efficient proof-of-stake altcoin and the fifth most valuable cryptocurrency in the world. The ADA token has shot up 1,259% in the past 12 months. It’s trading for a dollar and some change, but analysts believe it could hit $10 soon as an energy-efficient alternative to Ethereum and Bitcoin.
Coinbase added Cardano to its platform back in March this year. Later, Tesla suspended Bitcoin as a payment option on its website due to its massive energy requirements. These aspects have boosted ADA’s price significantly. Moreover, the launch of its smart contract platform called Alonzo will further increase its utility in the DeFi space.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.