In this guide, we will explain what are the best cryptocurrencies to buy today, including some of the top cryptocurrencies and where to buy them. We will also break down the factors to consider when buying or trading cryptocurrencies, such as the process and security measures.
Today, many people are considering owning cryptocurrencies but don’t know the right time to buy or which token or coin is best, while others still don’t know what cryptocurrencies are. Before we find out which is the best cryptocurrency to invest in today, we’ll explain what they are, how they work and whether it’s a smart idea to buy cryptocurrencies right now.
Disclaimer: The content of this site should not be considered investment advice. Investing is a speculative activity. When investing, your capital will be at risk.
What are cryptocurrencies?
A cryptocurrency is simply digital money that people can use to buy, sell or trade on cryptocurrency exchanges in the same way we use fiat currencies. The main difference is that cryptocurrencies are non-tangible (intangible assets are defined as any asset that is not a physical asset or cash) and operate freely from user to user without a centralized authority such as a central bank or government.
As of September 2022, there were more than 21,000 cryptocurrencies on the market, and if the space continues to expand, that number looks set to continue to grow.
Is it worth buying cryptocurrencies right now?
The cryptocurrency space is volatile, so there is no straight answer as to whether it would be a good idea to invest in cryptocurrencies right now (as of the second half of 2022). Even the most well-known projects, such as Bitcoin and Ethereum, can experience dramatic price movements.
Just like buying or trading stocks in the stock market, you will be able to make an informed decision after weighing several factors, such as the effects of inflation, rising interest rates, and political and economic turbulence.
The cryptocurrency market tends to move in cycles; using technical analysis, such as support and resistance levels, will help you identify market lows and highs.
The best cryptocurrencies to buy today
With over 21,000 digital coins, choosing some of the best cryptocurrencies to buy right now can be overwhelming, so as a beginner, you should first invest time in getting your bearings in the cryptocurrency space.
To help you with your search, we’ve compiled a list of the best cryptocurrencies to buy right now based on several factors that affect their performance, such as market capitalization, features and fundamentals, and investment suitability.
1. Bitcoin (BTC)
The pioneering cryptocurrency laid the foundation for the development of other cryptoassets. With a market capitalization of just over $350 billion at the time of writing, Bitcoin has the largest share of the entire cryptocurrency market.
Bitcoin embraces the concept of scarcity, and its ability as a store of value continues to attract investors to the asset. Bitcoin’s maximum supply is 21 million; of these, some 19.15 million are already in circulation.
In addition, Bitcoin uses a Proof-of-Work (PoW) validation mechanism that appeals to risk-averse investors more concerned about the safety of their funds. Notably, Bitcoin is not backed by any government authority, nor does it have a central bank to facilitate its use.
In addition, many companies, such as Visa and MasterCard, also allow the use of Bitcoin and other cryptocurrencies to facilitate payments, increasing the likelihood of adoption as more people shop using cryptocurrencies. As a result of its growth, the flagship digital asset is also experiencing increased institutional adoption.
Nasdaq (NDAQ), the second-largest U.S. exchange operator, announced in September 2022 that it would launch a cryptocurrency service. Nasdaq’s goal is to capitalize on the growing demand for cryptocurrencies among institutional investors. BlackRock (NYSE: BLK), the world’s largest asset management firm, also announced in August that it would provide cryptocurrency services, including Bitcoin, to its institutional clients.
Also of note, investment giant Fidelity has also added Bitcoin exposure to its exchange-traded funds (ETFs); at the same time, Bitcoin ETFs continue to increase.
2. Ethereum (ETH)
Ethereum is the second largest blockchain network by market capitalization after Bitcoin. Launched in July 2015 by a team of developers led by Vitalik Buterin, Ethereum is arguably the largest smart contract platform on the market, attracting a large number of developers due to its ability to support multiple use cases, such as non-fungible tokens (NFTs).
Since its launch, Ethereum has experienced a huge growth of 14,155% as of early September 2022. As the second largest cryptocurrency by market capitalization, Ethereum is far ahead of most cryptocurrencies and has only Bitcoin left to surpass in the cryptocurrency space.
Ethereum’s unique blockchain technology places it among the best cryptocurrencies to buy now. For example, it allows developers to generate their cryptocurrencies and install smart contracts using the blockchain.
Importantly, it is expected to gain more traction since it successfully completed “The Merge” upgrade on September 15, 2022, which marked its transition from Proof-of-Work to a Proof-of-Stake (PoS) consensus mechanism. This upgrade aims to reduce grid energy consumption and gas tariffs, while making it more easily scalable.
With these changes, the Ethereum blockchain is expected to attract more investors who want to benefit from reduced gas fees.
However, as a precaution, transactions still take longer to process on the Ethereum network due to overloading. Those who want to buy Ethereum should also be aware that its security has also been a bit problematic on the platform previously, but the upgrade aims to make it more secure.
3. Cardano (ADA)
Cardano is a blockchain that uses the Proof-of-Stake consensus algorithm and has increased scalability features. These features allow Cardano to power decentralized finance (DeFi) projects and NFTs. Building decentralized applications, or dApps, can also take place on its blockchain in a variety of different domains, including gaming, polling and access management.
The hard fork (“hard fork”) called Alonzo, which went live in September 2021, included the addition of smart contract capabilities, which was a major upgrade for Cardano. As a result of this hard fork, ADA is now able to scale and operate at a higher speed than in the past. In addition to this capability, it allowed ADA to offer the developer community a DeFi application development platform and greater programmability.
The upgrade also included the ability to run smart contracts on the Cardano blockchain, in particular, Plutus smart contracts facilitate the reliable, fast and secure development of dApps. In addition, a second hard fork known as Vasil was launched on September 22, 2022. This fork is expected to further increase the scalability of the network.
Moreover, Cardano has also seen widespread adoption, with the world’s first digital asset bank, Sygnum Bank, announcing that its “clients will be able to conveniently and securely stake Cardano” through the bank’s institutional-grade platform “to generate staking rewards.”
For its part, the Georgian wine industry partnered with the Cardano Foundation to implement a traceability solution based on its blockchain technology to ensure the authenticity and quality of Georgian wine.
Finally, Cardano plans to establish an incubator program to help drive innovation and solve everyday challenges across Africa. If it lives up to the goals of that plan and continues to scale, it will add to the reasons why it is one of the best cryptocurrencies to buy right now.
4. Binance Coin (BNB)
Binance Coin (BNB) is the cryptocurrency that underpins the Binance ecosystem. It is a coin minted on the Binance Smart Chain (BSC) blockchain that complies with BEP-20 standards.
In addition, Binance Coin is the native token of the Binance crypto-exchange, where it is traded, as well as on multiple other exchanges and platforms. BNB provides users with additional benefits such as cheaper costs and the ability to make investments, facilitate loans and transfers, donate to charities and buy virtual gifts, among others.
In 2017, when it was first introduced, the BNB coin was worth just $0.10. The coin’s value went on to reach an all-time high of $690.93 on May 10, 2021, setting a new record. The BNB token has proven to be a very useful asset for the Binance ecosystem, which has grown from a simple token trading platform to a complex and diverse marketplace.
Binance Coin is not only the native cryptocurrency that exists within this burgeoning ecosystem, but its uses have also grown considerably, for example, BNB users can:
- Earn staking rewards through staking on the BSC blockchain;
- Pay for goods and services through the Binance Card feature;
- Accept and make payments on the Binance Pay service;
- Claiming discounts on transaction fees on spot, margin and futures market trades.
Following its introduction, Binance implemented a quarterly buyback or burnback system for its tokens, with the goal of reducing the total amount of its tokens in circulation and increasing their value.
In December 2021, the company introduced the quarterly auto-burning process that allows automatic calculations on the blockchain to verify how much of the token should be burned based on its current price and the number of blocks produced on the BNB blockchain in a given quarter.
However, one thing users should keep in mind is that BNB is also vulnerable to regulatory issues. For example, in June 2022, BNB plummeted following an investigation launched by the Securities and Exchange Commission (SEC) into whether Binance respected procedures during its initial coin offering (ICO) in 2017.
5. Ripple (XRP)
A project of Ripple Labs Inc, XRP’s primary use case is for a blockchain that facilitates cheaper and more convenient cross-border transactions.
XRP does not use the Proof-of-Work or Proof-of-Stake consensus mechanism. Instead, it uses validation servers that verify requested changes to the latest ledger. XRP uses decentralized technology without a central authority that determines who can create a node or confirm transactions. That helps it process transactions between multiple currencies instantaneously and attract more investors who are moving away from the antiquated SWIFT network that can incur delays.
XRP’s blockchain has fast transaction execution, with ledgers occurring every three to five seconds. Ripple estimates that the XRP ledger can generally handle 1,500 transactions per second (TPS) and can scale up to 65,000 TPS. In contrast, Bitcoin and Ethereum’s transaction speeds are 5 TPS and 15 TPS, respectively.
More importantly, although Ripple is still embroiled in a two-year court case with the SEC, the company is confident of winning. In fact, the company is also collaborating with universities around the world to support and accelerate academic research, technical development and innovation using blockchain, cryptocurrencies and digital payments.
For example, the XRP Ledger is held by more than 150 independent entities, including financial institutions, universities and cryptocurrency exchanges.
These developments can lead to a significant rise in the price of XRP and attract more investors.
6. Polygon (MATIC)
Polygon es un criptoactivo desarrollado a partir de la blockchain de Ethereum, cuyo objetivo es mejorar la escalabilidad y la infraestructura de Ethereum. Adopta el concepto de «capa dos» que amplía la blockchain de Ethereum en una red multicadena para mejorar las transacciones y las velocidades de confirmación.
In addition, Polygon is highly secure, highly scalable and interoperable. It offers a robust user and developer experience thanks to its flexible and customizable frameworks. Each dApp in Polygon operates with its dedicated resources and a fully customizable technology framework with proprietary governance.
Supported by cryptocurrency exchanges Binance and Coinbase, Polygon’s token (MATIC) is used on those platforms both as an exchange currency and in payment services. Due to its presence on major cryptocurrency exchanges, the coin is exposed to many users, and this may cause its value to increase.
In July 2022, Polygon launched the zkEVM scalability solution, which uses zero-knowledge Proof technology to reduce transaction costs and increase performance. With around 37,000 decentralized applications under its belt by August 2022, the value of the MATIC token could increase.
Some major companies are already incorporating Polygon’s platform, such as Meta and Stripe. In addition, Polygon is compatible with the stablecoin Tether (USDT) and invests in carbon neutrality, which could drive its future growth.
7. Decentraland (MANA)
Decentraland is a virtual reality platform that operates on the Ethereum blockchain to enable users to develop, experiment and make money from their content and applications. As a leading metaverse platform with a market cap of over $1 billion, Decentraland continues to attract more users and investors in the gaming space.
Decentraland uses Decentralized Autonomous Organization (DAO) technology as one of its highlights. DAO technology ensures genuine, decentralized governance where users have full control over the content and experiences generated on a specific parcel of virtual terrain.
In the last year, Decentraland has generated millions of dollars from the sale of virtual land, which must be paid for in MANA, the platform’s native currency. With over 20,000% gains since its official launch in February 2020, Decentraland is destined for more success, making it one of the best cryptocurrencies to buy now.
8. Solana (SOL)
Solana is a highly effective blockchain, one of its advantages being its low transaction fees, which attracts more investors to the platform.
Solana can process up to 50,000 transactions per second thanks to its Proof-of-Stake mechanism, which increases validation speed, and by September 2022, Solana-based transactions reached the 100 billion milestone. In addition, it uses Proof of History, which is an optimized extension of its time-tracked consensus algorithm.
Although it has stiff competition with Ethereum, Solana’s fast network and low fees have pushed it into the top 10 cryptocurrencies by market size. More importantly, Solana is quite different from Ethereum in the way it stores and modifies data. For example, it separates and puts state data and executable code at separate addresses.
Launched in 2020, SOL’s price has risen from $0.77 to an all-time high of $260.06 in November 2021, which was an impressive gain of nearly 4,000%. Notably, SOL tokens are native assets used for value transfer within Solana-based NFT markets, including Solanart, Solsea and Margin Eden. SOL is used in the manufacture, sale and acquisition of these NFTs.
Finally, Solana, as a PoS network, allows entities to stake their SOL tokens and run validator nodes or delegate their participation rights to validators in exchange for a reward.
9. Polkadot (DOT)
Polkadot (DOT) is another relatively new cryptoasset that is among the best cryptocurrencies to buy today, based on its interoperability and long-term prospects, which could give it a solid future.
Polkadot also offers impressive technology that attracts more investors and users to the platform. For example, it operates a Nominated Proof-of-Stake (NPoS) system, which allows all of its native native token holders to participate in the security of its network by staking their tokens. Polkadot’s blockchain is also interoperable through “Bridges” technology, which allows it to link with external networks such as Bitcoin and Ethereum.
For investors looking for a blockchain platform that solves the interoperability problem, improves scalability and offers a multi-chain network, Polkadot is a strong proposition.
10. Avalanche (AVAX)
Avalanche is a layer one blockchain designed to improve the base protocol and enhance the scalability of the system. It comprises thousands of subnetworks that form a diversified interoperable network of multiple blockchains. The Avalanche blockchain is highly scalable and capable of performing up to 4,500 transactions per second per subnet.
Initially launched as a competitor to Ethereum, Avalanche comprises three individual blockchains that operate independently to validate each transaction on the network. The platform is decentralized and allows for tens of thousands of validators. It also has robust latency, allowing it to achieve confirmation in three seconds, with most confirmations taking less than a second. All transactions are completely irreversible and immutable.
Compared to Ethereum, Avalanche is more scalable and better suited to handle massive transactions. This has increased its popularity among Ethereum projects. Launched in 2020, AVAX’s price has gone from $4.5 at launch to an all-time high of $146.22 in November 2021.
While a young project without much of a track record to compare, Avalanche is gaining traction as the world’s fastest platform for smart contracts. Even in a bear market that has taken up most of 2022, AVAX is still up nearly four times since its launch.
Frequently asked questions about the best cryptocurrencies to buy today
What is a cryptocurrency?
A cryptocurrency is a peer-to-peer digital currency that people can use to buy, sell or trade without interference from a third party, such as a central bank or government.
Is now the right time to buy cryptocurrencies?
The best answer to this question is always obtained after analyzing different factors, such as the prevailing market conditions.
What is the best cryptocurrency to buy right now?
Before buying any asset, you should evaluate its current price, stability and underlying technology. Any of the cryptocurrencies in this guide is a valid proposition.
Where can I buy cryptocurrencies?
Before buying cryptocurrencies, you can visit any of the major cryptocurrency exchanges, such as Binance, Kraken or Coinbase, to compare prices and security features. You can also buy cryptocurrencies through authorized brokers.
