Crypto Exchange Options
Fees
Up to 0.40% maker fee; up to 0.60% taker fee
Account Minimum
$0
Fees
1% for buying or selling crypto
Account Minimum
$10 minimum deposit
Fees
Variable spread up to 2.65% on average
Account Minimum
N/A
Fees
Up to 0.16% maker fee; up to 0.26% taker fee
Account Minimum
$1
11 Best Cryptocurrency to Buy in 2024
Best Overall
Bitcoin
Vault Verified
Symbol
BTC
Market Cap
$1.38 trillion
All-time high
$73,750.07
Why we chose it
Bitcoin is the biggest cryptocurrency by both price and market capitalization, and it has the second-highest trading volume of any coin. Though it experiences significant price volatility, its value has increased by more than 86% in the past year.
Pros
- High potential returns
- Secure platform
- High trading volume
Cons
- Price volatility
- High energy consumption
- Slower transaction speeds than other coins
Best Blockchain Platform
Ethereum
Vault Verified
Symbol
ETH
Market Cap
$425.59 billion
All-time high
$4,891.70
Why we chose it
While it may not offer returns as high as Bitcoin, Ethereum is a leader thanks to its underlying blockchain technology. The Ethereum network can be used by anyone to create decentralized applications, enter into smart contracts and more.
Pros
- Powerful blockchain network
- Smaller carbon footprint
- Continued innovation
Cons
- Unlimited supply can lead to inflation
- Higher transaction fees
- Increasing number of competitors
Best Stablecoin
Tether
Vault Verified
Symbol
USDt
Market Cap
$104.52 billion
All-time high
$1.22
Why we chose it
Tether has the highest market capitalization of any stablecoin. As a stablecoin, its value is pegged to a fiat currency—in this case, the U.S. dollar—which allows it to retain its value, helping to reduce volatility in your crypto portfolio.
Pros
- Stable value
- Highest volume of any cryptocurrency
- Value is backed by Tether’s reserves
Cons
- No opportunity for asset appreciation
- Lack of financial transparency
- Criticized for lack of regulatory compliance
Best Utility Coin
Binance Coin
Vault Verified
Symbol
BNB
Market Cap
$92.6 billion
All-time high
$690.93
Why we chose it
Binance Coin is the native currency of the largest cryptocurrency exchange, while also serving as one of the most popular utility coins. It has a wide variety of use cases, including reducing and paying for your Binance trading fees, among other things.
Pros
- Reduces Binance trading fees
- Spend using Binance Card
- Regular coin burning prevents dilution
Cons
- Negative returns over the past year
- Charged by DOJ for illegal activity
- Can’t be traded on some top exchanges
Best for Transaction Speed
Solana
Vault Verified
Symbol
SOL
Market Cap
$82.7 billion
All-time high
$260.06
Why we chose it
Solana is known for its speed—it boasts a block time of just 400 milliseconds—and its efficiency. Similar to Ethereum, it can be used for decentralized applications and smart contracts but with lower fees.
Pros
- Fast transaction speeds
- Low transaction costs
- More energy efficient than other cryptocurrencies
Cons
- Network has suffered outages
- Unlimited supply can lead to inflation
- Smaller user base and shorter track record than Ethereum
Best for Global Payments
XRP
Vault Verified
Symbol
XRP
Market Cap
$34.7 billion
All-time high
$3.84
Why we chose it
Created by the digital payment company Ripple, XRP is a leader in cross-border payments that settle in seconds, making it an excellent alternative to traditional global payments. It aims to provide solutions for not only individuals but also financial institutions.
Pros
- Fast settlement of global payments
- More energy efficient than other cryptocurrencies
- Low transaction costs
Cons
- Recently subject to SEC action for unlawful sale of securities
- Not as decentralized as other cryptocurrencies
- Supply was pre-mined, with new introductions at the discretion of Ripple
Best Research-Based Platform
Cardano
Vault Verified
Symbol
ADA
Market Cap
$23.6 billion
All-time high
$3.10
Why we chose it
Cardano boasts itself to be the first blockchain platform founded on peer-reviewed research and evidence-based methods. Its use cases rival those of Ethereum, with a focus on function and scalability.
Pros
- Founded on peer-reviewed research
- More energy efficient than other cryptocurrencies
- Many real-world use cases, like Ethereum
Cons
- Lower year-over-year growth than many cryptocurrencies
- Smaller user base and shorter track record than Ethereum
- Focus on research could lead to slower growth
Best for Scalability
Avalanche
Vault Verified
Symbol
AVAX
Market Cap
$20.3 billion
All-time high
$146.22
Why we chose it
Like other cryptocurrencies, Avalanche’s platform is based on smart contracts. However, Avalanche boasts greater scalability thanks to its unique blockchain architecture.
Pros
- Unique blockchain network provides greater scalability
- Greater energy efficiency than other top cryptocurrencies
- Fast transaction speeds
Cons
- Minimum stake of 2,000 to become a validator
- Smaller user base and shorter track record than Ethereum
- Criticized for not punishing malicious validators
Best for Staking
Zilliqa
Vault Verified
Symbol
ZIL
Market Cap
$643 million
All-time high
$0.2563
Why we chose it
Zilliqa enables more than 1,000 transactions per second and has almost doubled since the start of February. Investors can currently earn 10.56% APR by staking their Zilliqa.
Pros
- Earn a high interest rate for staking
- Scales decentralized apps
- Can process more than 1,000 transactions per second
Cons
- High volatility
- Still needs to attract a large user base to become more readily adopted
- More competition
Best for GPU Power
Render Token
Vault Verified
Symbol
RNDR
Market Cap
$4.2 billion
All-time high
$13.60
Why we chose it
Render has gained more than 1,000% over the past year and has a limited supply. The 532,065,369 cap on Render Coins prevents inflation from building.
Pros
- A limit on supply prevents inflation.
- The coin has rewarded investors over the past year.
- Sharing unused GPU power can enhance productivity and help people save money.
Cons
- Concerns about the rally being overextended
- Competition
- Volatility
Best for Web3 Services
Chainlink
Vault Verified
Symbol
LINK
Market Cap
$11.1 billion
All-time high
$52.88
Why we chose it
Chainlink is connecting the world to blockchains with the next generation of high-throughput DeFi markets. The company has several use cases that indicate its functionality and relevance.
Pros
- Has several use cases for industries like gaming, finance, insurance, and more
- The coin has more than doubled over the past year
- Allows people to earn revenue by running critical data infrastructure
Cons
- Chainlink has not yet returned to its all-time high
- Rising competition
- Chainlink is a volatile investment
What Is Cryptocurrency?
Cryptocurrency is a form of decentralized digital currency. It isn’t recognized as an official currency in the same way that fiat currencies such as the U.S. dollar are. Cryptocurrency also isn’t controlled by a central entity in the same way fiat currency is, which is where its decentralized nature comes from.
Though cryptocurrencies aren’t technically money, they do share some similar uses. In some cases, cryptocurrencies can be used to pay for goods and services, just like other currencies. More commonly, they’re used as an investment product, similar to how one would use securities. You might buy a cryptocurrency—known as a coin—in the hopes of selling it for more than you purchased it.
How Does Crypto Work?
Cryptocurrency exists on decentralized networks known as blockchains. When they are bought and sold, cryptocurrencies are transferred using cryptography. These transactions are then recorded on the blockchain, which is a digital ledger. Each transaction in a blockchain is linked to the one before it, making these ledgers difficult to tamper with.
Cryptocurrency exists outside of the traditional financial services industry that requires banks and financial institutions for users to transfer funds from one another. Additionally, thanks to the recording of transactions on the blockchain, banks aren’t required to track transactions and account balances.
Though cryptocurrency has become a popular asset class for investors, the platform upon which it’s built is incredibly powerful. Many blockchain networks, including Ethereum, have use cases that include the creation of digital applications, the signing of smart contracts and more.
What Can You Buy With Cryptocurrency
Consumers can buy almost anything with cryptocurrency. While some companies offer crypto as a payment option, you can also get a crypto debit card to facilitate your purchases with digital assets.
Several cryptocurrency firms like Coinbase, Binance, and Bybit offer crypto debit cards. These cryptocurrency cards enable transactions with Bitcoin, but they also let you choose from several altcoins. Some of these cards have more coverage than others. You can also enjoy cashback on your purchases and get other perks as well.
A crypto debit card makes it easier to use your crypto to buy goods and services. Some businesses make it easier to use your crypto to buy products. These companies allow you to use crypto for transactions even if you do not have a crypto debit card. Sites like Coinsbee let you buy Amazon gift cards with crypto. You will then receive an email containing your gift card.
Coinsbee doesn’t only work with Amazon. It also lets you buy gift cards from Walmart, American Express, iTunes, Nintendo, Google Play, and other companies.
These are some of the things you can buy with cryptocurrency:
- Computers
- Gadgets
- Household supplies
- Cars
- Homes
- Luxury items
- Advertising placements
Is Cryptocurrency a Good Investment?
Cryptocurrencies can help diversify your investment portfolio and become less reliant on the stock market. These digital assets can generate substantial returns but also come with significant risks.
Investment Risks
Small altcoins in particular can exhibit 1,000% gains within a few months only to collapse by 50% a few months later. That’s not the fate for every cryptocurrency, but they are riskier than other investments.
The value of a cryptocurrency depends on its functionality and how many people use it. While Bitcoin and Ethereum have developed large followings, the smaller cryptocurrencies still have to prove themselves. These currencies can quickly gain or lose value based on how people perceive and use them.
Lack of Conventional Metrics
Investors don’t have conventional metrics like P/E ratios and financial performance to assess the intrinsic value of any cryptocurrency. These metrics can offer more certainty and make investors feel more comfortable about holding onto assets for the long run.
People who trade stocks can also benefit from trading cryptocurrencies since they can still use technical indicators. But there aren’t as many resources for fundamental analysts.
Storage Risk
Aspiring cryptocurrency investors also have to consider storage. Some brokerage firms like Coinbase and Robinhood make it easy to trade crypto and have them handle the storage for you. It’s also possible to buy Bitcoin ETFs to get exposure to the digital asset without owning it. There is speculation that Ethereum ETFs will arrive soon.
You can opt for a digital wallet if you want to own your cryptocurrency, but you will have to put your assets into cold storage for extra protection. Cyber hackers look for hot wallets and will attempt to steal those holdings. Crypto wallets are not insured by the FDIC and there is less regulation for these digital currencies.
How to Minimize Risk
Investors can minimize their risk by investing in stocks that are linked to the performance of cryptocurrencies. Block and MicroStrategy are two stocks that gain value when Bitcoin prices rise. Block helps people transact cryptocurrencies while MicroStrategy has a large stash of crypto. Coinbase is another stock to consider if you want exposure to the performance of cryptocurrencies. The brokerage firm reports better earnings when more people are trading crypto.
A cryptocurrency’s value will rise if it becomes widely adopted, but it’s hard to predict the level of adoption new cryptocurrencies will enjoy. These assets are speculative and can outperform the stock market. Bitcoin has done just that over the past five years. The coin has rallied by more than 1,200% during that time while the S&P 500 hasn’t even doubled in the same amount of time.
“Avoid falling victim to the online hype around cryptocurrency, especially when prices reach all-time highs, as Bitcoin recently did. Yes, you can make money investing in cryptocurrency, but don’t attempt to do so at the expense of your overall financial security.”
— Jamie Johnson
How to Buy Cryptocurrency
Just like you can open a brokerage account to buy and sell stocks, you can open an account with a cryptocurrency exchange to buy crypto. The biggest cryptocurrency exchanges include Binance, Coinbase and Kraken. Some traditional brokerage firms also now offer cryptocurrency trading.
The process of buying cryptocurrency through an exchange isn’t all that different from buying other types of investments. You’ll simply choose an exchange, open an account, link a bank account to fund your purchases and place an order for the type of cryptocurrency you want.
If you do purchase cryptocurrency, it’s important to find a safe place to store it, such as a crypto wallet.
First, you can store your cryptocurrency in a hot wallet, meaning one that exists online. While it’s easy to access your crypto this way, it’s also easier to have it stolen or vulnerable to scammers. A cold wallet, on the other hand, allows you to store your cryptocurrency offline, making it impossible for bad actors to get to. But it’s also more difficult to access yourself.
Why Would You Need to Invest in Cryptocurrency?
Many people have chosen to add cryptocurrency to their investment portfolios, but it’s not right for everyone. If you’re wondering whether crypto investing might be right for you, here are a few reasons you might consider investing in it.
- Portfolio diversification: Investing in cryptocurrency can help you diversify your portfolio beyond traditional assets like stocks and bonds. That being said, cryptocurrency should not make up the majority of most investors’ portfolios, nor should you invest in it with money you can’t afford to lose.
- Inflation protection: Fiat currencies, like the U.S. dollar, lose value over time due to inflation. Part of the reason for this is that the government can simply print more money. Cryptocurrency can serve as a hedge against inflation by rising in value—or at least maintaining its value—as the value of fiat currency declines, in part because of its limited supply.
- Easy transfers: Financial transfers, especially those across borders, can be expensive and can take several days. Cryptocurrency offers a path to global transfers in a fraction of the time and at a far more affordable cost. If you make frequent global transfers, cryptocurrency could help you do so more quickly and cost-effectively.
- High potential returns: Cryptocurrency has the potential to provide returns greater than what you could see from the stock market. For example, while the S&P 500 had a return of 20.51% in the period ending February 6, 2024, Bitcoin had a return of 88.87% for the same period. The counterargument, of course, is that cryptocurrency also has the potential for far greater losses, so you’ll have to consider whether that risk is worth it for you.
- Decentralization: One reason cryptocurrency has become so attractive is its decentralization. It’s not controlled by a powerful entity like the government, nor does it require gatekeepers such as banks and other financial institutions.
- Underlying blockchain: Some people choose to buy cryptocurrency to use the underlying blockchain. For example, someone might buy Ethereum or Solana if they’re interested in using those blockchains to create or use decentralized apps or smart contracts.
How to Choose the Best Cryptocurrency for You
With so many cryptocurrencies to choose from, there’s a handful of criteria you can use to choose the best one (or ones) for you.
Market Capitalization
The market capitalization of an asset is the price per coin multiplied by the number of coins in circulation. When used in reference to stocks, market capitalization is one way to estimate the value of a company, but when it comes to cryptocurrency, it shows the total value of available coins.
While market capitalization isn’t necessarily a guarantee of a cryptocurrency’s value of an investment, it can be an indicator of its stability and success. For example, Bitcoin has the highest market capitalization of any coin, and while it certainly experiences volatility and price drops, it’s also the most popular cryptocurrency that has seen significant price increases.
Security
If you’re considering investing in any cryptocurrency, it’s important to consider how secure it is. According to the SEC, cryptocurrency is a common target for scammers. Additionally, it doesn’t offer the same protections offered to investments through the Securities Investor Protection Corporation (SIPC) or those offered to fiat currency through the Federal Deposit Insurance Corporation (FDIC), credit card protections, etc.
While it’s difficult to know for sure which cryptocurrencies are most secure, you can learn about those that are less secure based on past issues.
Accessibility
A key factor that can help you determine which cryptocurrency to buy is how accessible it is. Not all cryptocurrencies are available on all crypto exchanges or even in all countries.
If you already use a particular exchange, you may want to simply choose cryptocurrencies that you can purchase there. If you’re willing to shop around with multiple exchanges, you may have more options.
Liquidity
A cryptocurrency’s liquidity refers to how easy it is to turn into cash by selling it. The higher a cryptocurrency’s liquidity, the easier you’ll be able to sell it immediately when you want to.
A good indicator of a coin’s liquidity is its trading volume. Cryptocurrency exchanges show each coin’s liquidity based on the dollar amount traded. Cryptocurrencies like Tether, Bitcoin and Ethereum have among the highest trading volumes, meaning they are easy to sell.
Use Cases
As we’ve mentioned, not everyone buys cryptocurrency for the same purpose. Some people buy it to use as currency to transfer to others or to buy and sell goods and services. Others buy cryptocurrency as a long-term investment, just as they would stocks and bonds. Finally, others may buy cryptocurrency to take advantage of the underlying blockchain technology.
The best cryptocurrency for you depends partially on your goals. Once you’ve identified your goals for buying cryptocurrency, you can compare each coin’s use case and find those with use cases that best fit. For example, someone might invest in Ethereum with the goal of using smart contracts or decentralized apps, while you might invest in Bitcoin if your goal is to maximize your potential investment growth.
Cryptocurrency vs. Other Assets
Cryptocurrency is a unique asset class that combines some features of both fiat currency and securities. To help you understand whether cryptocurrency is a good investment for you, consider how it compares to other assets.
Cryptocurrency vs. Traditional Currency
Many people consider cryptocurrency to be a viable alternative to traditional fiat currency. They point to factors like high inflation and centralization, among other things, as reasons why traditional money should be replaced.
While cryptocurrency and traditional currency have some similarities—both are stores of value and can be used to purchase some goods and services—their differences are more prevalent.
First, unlike traditional fiat currency, cryptocurrency doesn’t have the backing of any federal government, nor are there any protections in place to prevent you from losing it. Additionally, cryptocurrency isn’t widely accepted as a form of payment like regular currency is. You can walk into any store in the U.S. and trust that they’ll accept your dollars as payment, but the same can’t be said for your Bitcoin or any other cryptocurrency.
Cryptocurrency vs. Stocks
Cryptocurrency and stocks are both investment assets that offer the opportunity for appreciation and capital gains. When you’re investing in either a cryptocurrency or a stock, you might do so with the hope that the asset will increase in value, and then you’ll be able to sell it for a profit.
Both cryptocurrencies and stocks also see price fluctuations. Just as you might see the price of Bitcoin plummet, there have been plenty of examples of stock market corrections where stock prices fell considerably. In both cases, asset prices are based at least partially on investor sentiment, supply and demand.
But the two have some important differences. A stock isn’t simply a digital coin. Instead, when you buy a stock, you’re buying a share of ownership in the company. Not only are you entitled to asset appreciation, but you’re also granted voting rights in the company and may receive dividend payments.
Additionally, while stock prices are based at least partially on investor sentiment, just like cryptocurrencies are, they are also dependent on company performance. A fast-growing company with high revenue may see its stock price climb based on its success.
Finally, stocks, along with other securities, are heavily regulated by the U.S. Securities and Exchange Commission and are insured by the Securities Investor Protection Corporation, The same can’t be said about cryptocurrencies, which puts investors at increased risk.
Cryptocurrency vs. Gold
At first glance, there are few similarities between cryptocurrency and gold. After all, one is a digital asset and a relatively new innovation, while the other is a metal that dates back many thousands of years. But as an investment opportunity, the two actually have some things in common.
Both cryptocurrency and gold are considered by some investors to be legitimate protectors against inflation. While fiat currencies lose value with inflation, partially due to the unlimited potential supply, cryptocurrencies and gold may hold their value better (though there’s no guarantee of this). Someone might allocate a portion of their portfolio to either of these options as an alternative to stocks and cash that can protect them from market changes.
Cryptocurrency vs. Crypto Tokens
A crypto token is a form of digital currency that’s similar to cryptocurrency. The key difference between the two is that one is the native currency for a particular blockchain, while the other isn’t.
For example, the Ethereum blockchain has a native token that is a cryptocurrency. And the same blockchain supports other digital assets that may have a variety of functions. But these other assets aren’t the native currencies of the underlying blockchain. As a result, they’re considered crypto tokens instead of cryptocurrencies.
The two have some similarities. You can buy and sell both cryptocurrencies and crypto tokens, use them for various utilities and make money from them.
Frequently Asked Questions
Which Cryptocurrency Is Better Than Bitcoin?
Ethereum is often considered the best alternative to Bitcoin because of the powerful blockchain platform it’s built on. Unlike Bitcoin, Ethereum has an underlying blockchain that helps facilitate decentralized apps, smart contracts and more. But Ethereum isn’t necessarily better than Bitcoin, and the best cryptocurrency for you depends on your goals and risk tolerance.
Is It Still Good to Invest in Bitcoin?
Bitcoin is a risky investment known for its high volatility. The digital asset has comfortably outperformed the S&P 500 over the past five years and remains the largest cryptocurrency. But it’s only suitable for investors with high risk tolerances who can afford to lose some money in case the asset loses value. It’s not the best choice for retirees who need to tap into their investments soon and want more stability.
What Is Ethereum in Simple Terms?
Ethereum is a decentralized blockchain that verifies transactions. The lack of a central authority can reduce middleman fees and enable more transparency. Ethereum is mostly known for its cryptocurrency called Ether.
What Is Ethereum Actually Used For?
Ethereum isn’t only a digital currency. It also processes smart contracts and executes them when the conditions are satisfied. The blockchain also assists with processing financial transactions and storing data. Ethereum is constantly evolving thanks to its team of developers.
What Is The Best Crypto to Buy Into Right Now?
Bitcoin is a good starting point for crypto enthusiasts since it is the world’s largest cryptocurrency. Investors can also consider altcoins but should assess their risk tolerances before accumulating digital assets. Investors should assess cryptocurrencies based on their level of adoption and if more people may use them in the future.
Which Crypto Will Boom in 2024?
Bitcoin and Ethereum are two of the most promising cryptocurrencies due to their adoption and functionality. But investors can potentially find higher returns with smaller altcoins.
Newsweek writer Marc Guberti contributed to this post.
