- Bitcoin (BTC-USD) — Holds nearly half of the entire crypto market capitalization
- Ethereum (ETH-USD) — The most widely used layer-1 network
- Binance (BNB-USD) — Easily leads crypto exchanges by volume
- USD Coin (USDC-USD) — One of the most transparent stablecoins
- Uniswap (UNI-USD)– Leading decentralized exchange (DEX) and decentralized autonomous organization (DAO) by market cap
Crypto investing can be a real headache. Investors must first understand the blockchain and the various types of projects that developers can build on it. Then, there’s the barrier of registration; investors must find the right exchanges and wallets that suit them. Lastly, there are thousands of digital currencies to actually choose from once everything else is ready. If you want to eliminate the noise, start by looking for the best blue-chip cryptos to buy in a sea of duds.
It’s quite easy to get caught up in trying to find a 100x token on the verge of a breakout. However, one of the best strategies is — as is the case with stocks — focusing on blue-chip names.
In an industry like crypto, projects are subject to the boom and bust cycle with incredible frequency. The unestablished can wither away very quickly.
Consider these cryptos instead to invest in the gold standard of digital assets:
Blue-Chip Cryptos to Buy: Bitcoin (BTC-USD)
Kicking things off is the crème de la crème of crypto. The industry wouldn’t exist as it does today without Bitcoin. BTC is the end all, be all of digital assets, truly omnipotent in its ability to influence every other cryptocurrency’s price.
In an industry with a market capitalization of about $2 trillion, it’s stunning to see just how influential Bitcoin is. The No. 1 currency on the market holds nearly $800 billion in market cap to itself, accounting for about 40% of the entire market. This massive weight leads Bitcoin’s price fluctuations to influence every other crypto, meaning on its down days, Bitcoin can throw the whole market into a correction.
This is thanks in large part to the fact that Bitcoin is one of the first cryptocurrencies to see widespread adoption. It is over 13 years old and represents transactional cryptocurrency in its purest form. If ever there was to be a single crypto adopted throughout the world, there’s certainly an argument on Bitcoin’s behalf. El Salvador would likely be happy to make that case.
While Bitcoin is certainly one of the most senior cryptocurrencies around, Ethereum is not far behind. In a market that has only really come into the mainstream in the last 1.5 years, Ethereum is nearing its eighth birthday. In that time, the network has laid the groundwork to become the largest layer-1 protocol in the world.
Ethereum hosts over 4,000 decentralized apps (dapps) on its platform. This makes it easily one of the largest of its kind, at least in terms of total offerings. But the network can also boast about having the largest total value locked (TVL) of any chain.
TVL is a popular metric which measures the amount of assets locked onto a chain; these assets support DeFi purposes, like generating liquidity. A high TVL means a lot of money is flowing through a protocol, and Ethereum certainly has that. It holds over $113 billion in TVL, nearly four times that of any other competitor. Of course, this number is quite high because the network hosts about 500,000 active users in any given month.
Blue-Chip Cryptos to Buy: Binance (BNB-USD)
Binance is another easy crypto to buy, given its massive dominance. The world’s largest crypto exchange by volume, Binance is only getting bigger.
In the last 24 hours, Binance has processed about $19 billion worth of crypto trades. The second-largest exchange, Coinbase (NASDAQ:COIN), processed just over $3 billion. Quite obviously, Binance is the first choice worldwide when it comes to trading digital money.
As CoinDesk reports, Binance is still getting bigger. In the last month, the exchange accounted for 30% of the total crypto spot trading market. This puts it just below its record of 34% in a month, achieved in November 2021 when cryptos were at their peaks. Seeing that crypto is only just recently coming out of its slump, it will be interesting to see whether Binance will overtake that record.
USD Coin (USDC-USD)
The stablecoin industry is a fiercely competitive one, but USD Coin has emerged as one of the clear-cut cryptos to buy in this sector. Launched by Coinbase and crypto payments company Circle, the $1 USD-pegged token is the second-largest stablecoin by market cap, worth almost $50 billion.
Stablecoins are popular investments for DeFi loyalists, who are liquidity farming the tokens in pairs with other cryptocurrencies. This venture can prove quite lucrative, and as one of the most popular stablecoins, there are many options out there for passively earning using USD Coin.
But perhaps most interesting about the project is its transparency. Many other stablecoins have fallen under scrutiny for not clarifying the nature of the reserves which underlie them. This can lead to distrust — and even volatility — that could potentially de-peg a stablecoin and send it crashing. USD Coin avoids the issue entirely by posting monthly reports clarifying exactly where its underlying reserves are coming from.
Blue-Chip Cryptos to Buy: Uniswap (UNI-USD)
Uniswap is one of the best cryptos to buy because it is a king of crypto exchanges in its own right. While it’s not anywhere close to Binance in size, it is the largest decentralized exchange in the world.
Decentralized exchanges cut out third parties, allowing users to trade in a peer-to-peer vacuum. They eliminate the need for third-party custodians and the regulatory red tape that centralized exchanges like Binance must carry. They are very appealing options for those looking for the lowest-fee trades and the most lucrative staking and liquidity providing opportunities.
Uniswap is the largest of this subindustry; in the last 24 hours, it has seen $1.4 billion in assets swapped on its platform. And the best part about the network is that it is entirely user-dictated. The UNI token is a DAO token, meaning anybody who holds the crypto can vote on community proposals. This directly democratic model ensures that holders are steering exactly which direction the platform takes. This makes for one of the most hands-on investing opportunities available.
On the date of publication, Brenden Rearick did not hold (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.