The cryptocurrency bull market is certainly carrying on. Investors looking at the returns of their equity or bond portfolios relative to that of major cryptocurrencies may blush. Indeed, these digital assets continue to outperform most asset classes in this risk-on environment, leading many to wonder what cryptos to buy.
The bullish momentum this sector has seen has invited a tremendous amount of investor interest in cryptocurrencies. According to many analysts, this bull market may have a lot of room to run. However, like any other highly-speculative asset class, there are a number of risks to consider.
In recent weeks, we saw Bitcoin (CCC:BTC-USD) and Ethereum (CCC:ETH-USD) both hit new all-time highs. As the two most highly-valued cryptocurrencies, this is a big deal. Other smaller-cap crypto options have followed suit. Accordingly, investors looking for the “next Bitcoin or Ethereum” are in search of top cryptos to buy. After all, investors have the obligation to consider any opportunity to improve their risk-adjusted returns over time.
Not all crypto options are created equal. However, these top seven cryptocurrencies are ones I think have a lot of potential. As long as this bull market is raging on, these cryptos are ones to keep on the watch list.
Let’s dive into seven of the top cryptos to buy right now:
- Cardano (CCC:ADA-USD)
- Algorand (CCC:ALGO-USD)
- Solana (CCC:SOL-USD)
- Wazir X (CCC:WRX-USD)
- Terra (CCC:LUNA-USD)
- Stellar Lumens (CCC:XLM-USD)
Top Cryptos to Buy: Ethereum (ETH)
Starting at the top, Ethereum remains a core holding for many top crypto investors. As the second-largest cryptocurrency by market capitalization, Ethereum’s rise to new all-time highs of late has raised eyebrows.
Of course, Ethereum’s status as the decentralized blockchain network of choice for developers due to Ethereum’s smart contract-focused design has given rise to one of the most impressive network effects in the space. The range of decentralized applications built on top of the Ethereum blockchain are incredible. Accordingly, for investors looking at a foundational cryptocurrency investment, Ethereum needs to be on the list.
This cryptocurrency is also notable for its shift toward a proof-of-stake validation model. Via a series of updates, the Ethereum blockchain will move toward this more efficient (and environmentally-friendly) consensus validation protocol. Accordingly, investors bullish on Ethereum note that while gas fees remain high, there is hope for a faster, and cheaper network in the future.
Currently the fourth-largest cryptocurrency by market capitalization, Cardano has become a core holding for many long-term crypto investors. This mega-cap crypto network was one of the first large-scale proof-of-stake networks, and has seen a rather large network effect as a result of this status.
Cardano’s smart contract functionality was introduced on its network on Sept. 12. Since then, developers have taken to Cardano as a core network to build decentralized finance (DeFi) apps and a range of other projects on top of.
Cardano’s early mover advantage in the proof-of-stake space, along with this smart contract functionality, is a big deal. Accordingly, this is a cryptocurrency investors appear to be watching closely right now.
Indeed, looking at the price action in ADA over the past year, investors will note a series of massive spikes periodically. Currently, ADA trades at a discount of roughly 25% from its peak this year. Accordingly, there are a number of investors who view ADA as a potential value pick, considering the growth profile of the Cardano network.
Top Cryptos to Buy: Algorand (ALGO)
One of the earliest cryptocurrencies to be called an “Ethereum killer,” Algorand is certainly a cryptocurrency that has moved up the rankings fast. Algorand sits at No. 20 among all cryptocurrencies in terms of market capitalization. Indeed, the fact that this crypto network has grown to this position in such a short amount of time is noteworthy.
Over the past three months, ALGO has more than doubled, showing strong support in the $1.80-$2 per token range. The native token of the Algorand blockchain, ALGO has been slowly recognized as one of the fastest-growing cryptocurrencies in the market.
This cryptocurrency has gained traction for a number of reasons. However, oddly, one of the key drivers of Algorand of late has been El Salvador’s move to make Bitcoin legal tender in that country. As a result of the El Salvadorian government’s deal with Koibanx to make Bitcoin legal tender, Algorand was chosen as the platform to be used to develop the country’s digital asset infrastructure.
Accordingly, Algorand is a platform with a tremendous following right now. This is one I’ve got on my watch list as a potential aggressive high-risk, high-reward investment right now.
One of my top crypto picks continues to be Solana. Indeed, Solana’s blockchain infrastructure is among the most appealing for investors seeking a speed and cost advantage among networks.
Solana is able to process an absolutely incredible throughput of more than 50,000 transactions per second. This puts Bitcoin and Ethereum to shame. Additionally, unlike these networks, Solana is able to process most transactions for a very small amount (as low as a fraction of a penny).
Indeed, those bullish on the ability of blockchain networks to replace traditional payments infrastructure will like what Solana is selling. As the native token of the Solana blockchain, SOL has been one of the best-performing cryptocurrencies this year at over 13,000% higher since the beginning of the year.
Top Cryptos to Buy: Wazir X (WRX)
Perhaps the most speculative pick on this list is Wazir X. Currently, Wazir X is the largest cryptocurrency exchange in India. India is right now a major cryptocurrency hotspot, and there are several reasons for this.
This Asian nation comes with a massive population and has a huge market for cryptocurrency. Notably, it is also home to the largest number of cryptocurrency holders in the world.
The Reserve Bank of India had for long imposed a ban on crypto trading, which was finally lifted in March this year. With the removal of the ban, Wazir X jumped from 40 cents to $4 within a period of a month. As of now, this Indian crypto is trading at $1.60. However, there wasn’t much clarity with the central bank’s dictate to uplift the ban, as Indian banks are still prohibited from conducting crypto transactions.
Interestingly, a recent taxation law has hinted at a crucial cryptocurrency bill that is set to increase the demand for this Indian cryptocurrency. Accordingly, those looking to add a little risk capital to the crypto sector may want to consider this fast-growing option.
Another major cryptocurrency that can be a great pick for investors looking to try hands-on speculative crypto plays is Terra. LUNA, the native token of the Terra platform, is a popular stable coin aimed at reducing the volatility that is often prevalent in cryptocurrencies like Bitcoin.
Terra has a number of stablecoins pegged to more stable traditional fiat currencies. These fiat currencies include the U.S. dollar, Mongolian Tugrik, South Korean won and the IMF’s Special Drawing Rights currencies.
LUNA has jumped significantly in the last year. It could be bought for less than $1 at the beginning of the year. However, now it is trading at around $50.
Stablecoins are becoming more popular with investors lately. This is due to the fact that, unlike other cryptocurrencies, Terra is rooted in real currencies and therefore offers substantial stability.
Top Cryptos to Buy: Stellar Lumens (XLM)
With the aim to ease global money transfer, Stellar works to make money transfer facilities available for the unbanked population of the world. Accordingly, XLM is regarded as one of the fastest-growing blockchain payment systems worldwide.
One of the most significant factors that have contributed to its growth and popularity is its low transaction and transfer cost. This platform has a transaction cost of 0.00001 XLM, which is equivalent to just 0.000038 cents. Notably, this is much lower than most international money transfer costs, which usually stand at 1% or more.
Stellar Lumens has performed well over the last year. This cryptocurrency has tripled on a year-to-date basis. Accordingly, while XLM’s growth hasn’t been as impressive as other platforms, there’s a lot to like about this crypto as a potential value pick at these levels. Currently, investors can pick up XLM for around 43 cents.
On the date of publication, Chris MacDonald 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.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.