The search for top cryptocurrencies to buy is on. Seeing many of the large cap cryptocurrencies soar to new all-time highs, and smaller-cap alt coins make significant runs this year, is stirring a frenzy in the market. Indeed, there’s a fear of missing out in the crypto world right now. For investors looking to step in, thinking about where to allocate a little risk capital to this sector is important.
There’s reason to be skeptical of the dramatic rise the crypto sector has seen of late. Indeed, seeing what took place with the Squid Game crypto in recent days. There’s always the potential that something nefarious is going on.
However, some cryptocurrencies are better than others. There are numerous reasons why many long-term investors remain bullish on the potential of this nascent, fast-moving space.
Take the decentralized finance (DeFi) or non-fungible token (NFT) space as examples of some of the innovation built upon blockchain technologies. With investors looking for exposure to these networks, investing in tokens supporting these blockchains can allow for exposure to the increasing use cases arising each and every day.
Let’s dive into seven of the top cryptocurrencies growth investors may want to consider to capitalize on the impressive growth trajectory of this sector.
- Ethereum (CCC:ETH-USD)
- Cardano (CCC:ADA-USD)
- Solana (CCC:SOL-USD)
- Polygon (CCC:MATIC-USD)
- Chainlink (CCC:LINK-USD)
- Dogecoin (CCC:DOGE-USD)
- Tether (CCC:USDT-USD)
Top cryptocurrencies to Catch: Ethereum (ETH)
Let’s go ahead and start right at the top. The world’s second-largest cryptocurrency, Ethereum remains a core staple of many crypto investor portfolios. There are reasons for this.
Among the key reasons investors remain so bullish on Etheruem is the crypto’s underlying blockchain network. Ethereum’s smart contract-based blockchain provides the building blocks for decentralized finance and a range of use cases. As I mentioned in the intro, these are the key drivers of growth many long-term investors look to.
A range of crypto projects have been built on top of the Ethereum blockchain. If Ethereum ceased to exist tomorrow, so would a massive chunk of the utility that’s been created by the crypto world.
Accordingly, long-term investors looking to build a portfolio have increasingly looked to Ethereum. And for good reason. This strong investor demand has recently pushed ETH to new highs. This token currently trades around $4,800 per token.
Founded by one of the co-founders of Ethereum, Cardano takes a top-five spot in the cryptocurrency rankings, by market capitalization. Such a feat is noteworthy, as this status is likely to continue to drive demand long-term.
One of the first proof-of-stake platforms out there, Cardano is a bit different in structure than its cryptocurrency peers. Investors looking to invest in the top cryptocurrencies with upside potential to catch Bitcoin (CCC:BTC-USD) or Ethereum have sought out Cardano for this reason alone.
Launched in 2017, Cardano has seen strong initial growth. However, compared to its cryptocurrency peers, this growth has moderated somewhat this past year.
Those bullish on Cardano note this blockchain network has recently added smart contract features that aim to accelerate the development of more decentralized applications on its network. This factor, along with the blockchain’s proof-of-stake consensus mechanism (which is much less energy-intensive than that of Bitcoin and other major peers) has enticed investors to hold ADA for the long-term.
Currently, ADA trades at around $2.27 per token.
Top cryptocurrencies to Catch: Solana (SOL)
Solana has been one of the fastest-growing top cryptocurrencies in the world this year. Indeed, Solana has not-so-quietly jumped to sixth place in the cryptocurrency rankings by market capitalization. This move is a result of various catalysts long-term investors view very bullishly.
Dubbed another “Ethereum killer,” Solana touts a lightning-fast network, with rock-bottom fees. Ethereum gas fees are among the key pain points for investors in this top blockchain network. Solana’s ability to solve for these fees, and provide capacity to produce up to 65,000 transactions per second, is incredible.
Speed and cost will continue to remain two key factors for investors to consider with the underlying blockchains they’re investing in when buying tokens. In this respect, Solana appears to have a leg up on the competition right now.
Solana has surged to the $242 per token level, at the time of writing. However, given the upside volatility with this cryptocurrency, I expect this value to change significantly in the days and weeks to come.
A top-20 cryptocurrency by market cap, Polygon is a fast-growing network with some unique characteristics.
This network operates as a side chain protocol with Ethereum compatibility. What this means is investors on the Polygon network can link up to other blockchains. For developers looking to do large-scale projects, or overcome some major shortcomings of Ethereum (fees and delayed transactions), Polygon has become a top choice in the crypto world.
Polygon has positioned itself as a relatively cheap, and faster alternative to Ethereum. However, by allowing for interoperability with other blockchains, Polygon has also become useful to developers looking to overcome other constraints of a growing swath of “Ethereum killers” out there today.
MATIC currently trades at around $2 per token, at the time of writing. This top cryptocurrency has been slowly inching its way back to its all-time high of late. Accordingly, crypto investors focused on growth have been increasingly singling out MATIC as an intriguing momentum play in the crypto world recently.
Top cryptocurrencies to Catch: Chainlink (LINK)
Chainlink is among the more intriguing cryptocurrency networks out there. Investors in LINK, the native token of the Chainlink network, get access to an oracle network. What that means is Chainlink acts as a central junction for other blockchains to speak with each other.
Typically, different blockchain networks are siloed from each other. This is for a number of reasons. In particular, the security of an individual blockchain requires no interference from outside sources. However, for developers looking to develop cross-blockchain projects, the walled nature of the crypto market provides its challenges.
Accordingly, Chainlink’s purpose as an oracle platform could be game-changing in the crypto space. Those investing in LINK tokens gain exposure to the potential future value this innovation provides. The ability of off-chain data to work with one or more blockchains to provide real-world utility is a big deal. Accordingly, there’s a reason why many investors are very bullish on this up-and-coming cryptocurrency.
Many crypto investors associate the rise of meme tokens to the rise of Dogecoin. Indeed, as one of the first dog-inspired meme tokens to take over social media, Dogecoin represents the more speculative side of the crypto market.
That’s not to say the Dogecoin network doesn’t provide utility. This blockchain protocol does have specific use cases, outside of building online community. However, it should also be noted that Dogecoin was created as a joke. This network wasn’t created with the intent to be a world-class cryptocurrency.
Fast forward a few years later, and Dogecoin is the 9th-largest cryptocurrency by market capitalization. That fact alone is absolutely incredible. But that’s neither here nor there.
Dogecoin has risen to prominence in part thanks to high-profile celebrity supporters such as Elon Musk. With the focus for meme tokens shifting to other high-flying names such as Shiba Inu (CCC:SHIB-USD), perhaps this run is over. However, for those looking to buy a speculative meme token on a big dip, DOGE certainly provides an intriguing entry point here.
Top cryptocurrencies to Catch: Tether (USDT)
Launched in mid-2014 as ‘Realcoin,’ Tether was initially designed to work only with the Bitcoin blockchain. It has been gradually updated to work with various other crypto blockchains, including Ethereum.
Tether is a stablecoin, which means it is designed in such a way that its price would imitate a particular currency. In this case, it is the U.S. dollar. It claims to possess $1 in its reserves for each Tether coin it issues. This signifies that investors can easily convert their U.S. dollars into Tether coins and then trade in different other currencies.
Notably, Tether is a centralized cryptocurrency, meaning this stable coin may have more regulatory oversight and requirements. This has proven to be a potential negative for some investors of late.
However, for crypto investors seeking stability, Tether is one place to park one’s cash in something that is unlikely to fluctuate. Stability is a good thing, and Tether provides one of the few reprieves in the crypto market from volatility, for now.
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.