Top 10 Crypto to Buy Now in February 2024
As the crypto market evolves in February 2024, investors are eyeing the top 10 cryptocurrencies for potential growth and profitability. Bitcoin, the pioneer cryptocurrency, continues to lead the pack, with its scarcity and widespread adoption driving investor interest. Ethereum, the second-largest cryptocurrency, remains a favorite due to its smart contract capabilities and potential for decentralized finance (DeFi) applications. Solana and Binance Coin are also in the spotlight, with their fast transaction speeds and robust ecosystems.
Other cryptocurrencies such as Cardano, Avalanche, and Polkadot are gaining traction for their innovative technologies and strong communities. Additionally, newer entrants like Terra, Algorand, and Cosmos are capturing attention for their unique features and potential to disrupt traditional industries. With the crypto market’s volatility, thorough research and risk management are crucial for investors looking to capitalize on the potential of these top 10 cryptocurrencies in February 2024.
What is Crypto?
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks based on blockchain technology. This technology enables secure, transparent, and immutable transactions without the need for intermediaries like banks.
Cryptocurrencies are stored in digital wallets and can be used for various purposes, including online purchases, investments, and remittances. Bitcoin, created in 2009, was the first decentralized cryptocurrency and remains the most widely known and traded. Since then, thousands of other cryptocurrencies, including Ethereum, Ripple, and Litecoin, have been created, each with its own unique features and applications.
Top 10 Crypto to Buy Now
We’ve refined the selection to 10 cryptocurrencies that offer the most promising opportunities currently. The leading three coins are regularly updated to mirror the latest advancements in the crypto and blockchain industry.
Let’s start by highlighting three cryptocurrency projects that have recently seen significant developments or have important events coming up soon. We update these featured coins weekly to reflect the latest happenings in the crypto and blockchain space.
Before we delve into our list of the best cryptocurrencies to buy, it’s essential to note that selecting which crypto to invest in is just the initial step in your cryptocurrency investment journey. You also need to choose the right platform to purchase crypto and decide how you will store your cryptocurrency.
Ethereum
Ethereum is a blockchain platform that facilitates smart contracts, enabling more intricate use cases like decentralized lending protocols and non-fungible tokens (NFTs). Vitalik Buterin founded the Ethereum project, and the Ethereum whitepaper was published in late 2013, with the blockchain launching in July 2015.
One of Ethereum’s early successful use cases was the ability to create custom tokens for transactions on its blockchain. This feature was widely adopted for fundraising through Initial Coin Offerings (ICOs) and other token sales.
Today, Ethereum boasts a thriving ecosystem of decentralized applications (dApps), including decentralized finance (DeFi) services, NFT marketplaces, publishing platforms, decentralized exchanges, and more. These factors contribute to why we believe Ethereum is a good investment in 2023.
ETH is Ethereum’s native asset, incentivizing users to secure the network. Initially, the Ethereum network used a Proof-of-Work consensus mechanism but transitioned to Proof-of-Stake in September 2023.
Why Ethereum?
Ethereum stands out for several reasons. Recently, there has been a notable increase in demand from validators looking to stake ETH, as reported by ValidatorQueue. The number of validators in the queue has surged to 7,045, the highest since October 2023. With each validator required to stake 32 ETH, this amounts to 225,440 ETH, equivalent to over $562 million at the current valuation.
This rise in validator interest is intriguing, especially considering that ETH stakes are currently earning between 3.5% and 4% annually, in ETH. To put this into perspective, 10-year U.S. Treasury notes currently offer a yield of 4.17%, in USD.
Additionally, Ethereum’s upcoming Dencun upgrade is worth noting. This upgrade will introduce “proto-dank sharding” and several other enhancements. The “proto-dank sharding” feature is expected to lower transaction costs for layer 2 blockchains and reduce data availability costs on Ethereum. The Dencun upgrade has already been implemented on the Sepolia and Holesky testnets, with a mainnet launch scheduled for March 13.
Tezos
Tezos is a blockchain platform that utilizes Proof-of-Stake and supports smart contracts. It’s known for its unique on-chain governance, allowing validators to propose and approve upgrades without the need for a hard fork.
One of Tezos’ standout features is its smart contracts language, Michelson, although developers can also use Python and Go for smart contract development. The mainnet launched in September 2018, following one of the most successful ICOs ever, raising approximately $232 million. Despite some initial negative press due to internal disputes, Tezos has since become a respected project in the crypto community.
Recently, Tezos underwent the Oxford 2 upgrade, introducing private Smart Rollups for layer-2 solutions and improving the Proof-of-Stake mechanism for stakes. Additionally, the upcoming mainnet launch of Etherlink, a layer 2 platform compatible with the Ethereum Virtual Machine (EVM), is expected to further enhance the Tezos ecosystem.
While the price of XTZ, Tezos’ native asset, has been relatively stable, showing a slight decline against the US dollar in the last month, it could see more dynamic price movements as the Etherlink platform nears its mainnet launch.
Jupiter
Jupiter is a swap aggregator on the Solana blockchain, offering efficient token swaps by tapping into multiple liquidity sources. It provides additional features like limit orders and dollar-cost averaging, which are often lacking in decentralized exchanges.
Recently, Jupiter introduced perpetual contracts, allowing users to trade crypto assets with leverage. They also launched the LFG Launchpad, enabling investment in new cryptocurrency projects.
Although Jupiter initially launched without a token, they have since introduced the JUP governance token. JUP holders can participate in key decisions about the Jupiter platform. The token was initially distributed through an airdrop.
The JUP token has experienced price volatility since its launch, partly due to airdrop participants selling their tokens. However, the introduction of the LFG Launchpad could change the token’s fortunes. Jupiter’s founder, known as “Meow,” has highlighted three projects as potential candidates for the Launchpad: liquid staking project Sanctum, NFT collateralization platform Sharky, and cross-chain bridge deBridge.
Solana
Solana is a smart contracts platform known for its high throughput and low transaction costs. It can process thousands of transactions per second thanks to its unique architecture, which combines the Proof-of-History algorithm with a Proof-of-Stake consensus mechanism. Users pay less than $0.001 per transaction on average, making SOL one of the cheapest cryptos to transfer.
Founded by Anatoly Yakovenko in 2018, Solana’s mainnet launched in March 2020 and saw significant adoption in 2021. Despite experiencing a decline in value during the 2022 bear market, Solana maintains one of the most impressive ecosystems in the cryptocurrency sector.
In January, Solana witnessed an all-time high in new addresses, with 12.69 million new addresses participating on the blockchain, up from 9.98 million in December. This surge in activity was likely driven by the launch of the JUP governance token on Jupiter, a decentralized exchange built on Solana. Solana has also become a popular platform for trading meme coins like WIF and WEN.
Solana’s token extension functionality allows developers to customize tokens on the blockchain, enabling features such as confidential transfers, whitelisting, and automatic transaction fees. This functionality enhances the platform’s appeal beyond meme coins, showcasing its versatility and potential for broader adoption.
Bitcoin
Bitcoin is a decentralized cryptocurrency launched in 2009 by an individual or group using the pseudonym Satoshi Nakamoto. It introduced the concept of blockchain technology, providing a secure, decentralized digital currency. Bitcoin uses Proof-of-Work to ensure the integrity of transactions and prevent double-spending. Miners are rewarded with BTC for adding blocks to the blockchain and securing the network.
One of Bitcoin’s key features is its ability to be sent globally, 24/7, without the need for intermediaries to approve transactions. Users can also self-custody their Bitcoin by holding their private keys, eliminating the need for traditional banking institutions.
Despite the proliferation of cryptocurrencies and blockchain platforms since its inception, Bitcoin remains the largest cryptocurrency by market capitalization.
Bitcoin remains a compelling cryptocurrency to monitor, particularly due to the recent approval of several spot Bitcoin ETFs in the United States.
The conversion of the Grayscale Bitcoin Trust (GBTC) to an ETF has been a significant development. GBTC had accumulated a substantial amount of BTC over the years. However, its high management fee of 1.5% has made it less attractive compared to newer offerings. As a result, many investors have been transitioning their holdings to more efficient products, such as the spot Bitcoin ETFs from BlackRock and ProShares.
Furthermore, investors who had purchased GBTC shares at a discount to the product’s net asset value (NAV) have been selling their shares to profit from the arbitrage opportunity presented by the ETF conversion. This selling pressure is expected to diminish soon, according to a research report from JPMorgan.
XRP
XRP is a cryptocurrency launched in June 2012 by David Schwartz, Jed McCaleb, Arthur Britto, and Chris Larsen through their company OpenCoin, later renamed Ripple. Ripple holds the majority of XRP in escrow, with 80% of the supply gifted to the company by the developers.
XRP is known for its fast and low-cost transfers, making it suitable for remittances. It uses the XRP Ledger Consensus Protocol, where network participants select validators they trust.
Ripple has integrated XRP into its products, including On-Demand Liquidity (ODL), which uses XRP for cross-border money transfers.
Recently, XRP has experienced a significant price increase, rising 26% in the last week to its highest level since July, surpassing BNB in market capitalization. This surge may indicate a potential correction, but it follows positive developments for Ripple and XRP.
In October, the SEC dropped claims against Ripple executives Brad Garlinghouse and Chris Larsen, though the legal battle with Ripple continues. Additionally, Ripple partnered with the National Bank of Georgia for a pilot using Ripple’s CBDC Platform for a central bank digital currency, the Digital Lari.
BNB
BNB is a token launched by the Binance cryptocurrency exchange in 2017. It provides users with various benefits on the Binance platform, such as lower trading fees, access to Launchpad and Launchpool programs, cashback on Binance Visa card purchases, and more.
Additionally, BNB serves as the native asset of the BNB Chain blockchain, a variant of Ethereum that offers lower transaction fees and supports the deployment of EVM-compatible decentralized applications.
Recently, Binance has been active with its Launchpool platform, announcing several projects in quick succession. The most recent announcement was the Launchpool program for the Sleepless AI project on December 27. This has increased demand for BNB, which has seen a +38.5% change against the US dollar at the time of writing.
Users can stake their BNB via Binance Launchpool to earn tokens from upcoming blockchain projects. The ability to unstake BNB at any time allows users to receive new tokens while assuming relatively low risk. Watching for potential new Launchpool or Launchpad announcements from Binance could lead to further increases in the price of BNB.
Uniswap
Uniswap is a decentralized cryptocurrency exchange known for popularizing the automated market maker (AMM) model. This model eliminates the need for order books, allowing for direct token swaps on the blockchain without intermediaries.
The Uniswap protocol is decentralized, allowing anyone to create liquidity pools for any token. This means that new crypto assets are often traded on Uniswap before being listed on centralized exchanges. While many decentralized exchanges have adopted the AMM model, Uniswap remains the most active in terms of trading volume.
UNI token holders govern Uniswap, with the ability to submit and vote on proposals. UNI tokens were distributed to past users of the protocol via an airdrop in 2020 and are now available for purchase on various decentralized and centralized platforms.
Recently, Uniswap set a record daily trading volume of $11.84 billion, nearly doubling its previous record. This surge occurred as users flocked to trade USDC, a major stablecoin impacted by the failure of Silicon Valley Bank. Despite market chaos, Uniswap demonstrated its ability to handle significant trading volumes.
Additionally, Uniswap announced a non-custodial mobile wallet supporting the Ethereum mainnet, as well as the Arbitrum and Optimism layer 2 scalability platforms.
Mina Protocol
Mina Protocol is a project focused on building an extremely lightweight blockchain using zero-knowledge technology. This technology keeps the size of the Mina blockchain at just 22 kilobytes, regardless of its usage.
Decentralized applications on the Mina Protocol, called zkApps, utilize smart contracts that support zero-knowledge proofs. This allows users to prove ownership of their data without revealing the data itself to the party they are interacting with. zkApps can also privately source data from any website, providing easy access to real-world data without relying on complex Oracle systems.
Mina Protocol’s use of zero-knowledge technology positions it well to capitalize on the growing trend in the crypto and blockchain space. Additionally, its lightweight design makes it easier for users to participate in the network, particularly through mobile devices. As mobile devices are likely to play a significant role in the widespread adoption of blockchain technology, Mina Protocol could emerge as a leading cryptocurrency.
Cosmos
Cosmos is a network designed to enable interoperability between different blockchain platforms. The Cosmos Hub, a Proof-of-Stake blockchain, coordinates the Cosmos network and facilitates connections with external blockchains like Bitcoin and Ethereum through the Inter-Blockchain Communication (IBC) protocol.
Blockchains within the Cosmos network, including the Cosmos Hub, are developed using the Cosmos SDK framework. They benefit from a robust Proof-of-Stake consensus mechanism, fast transaction times (around 7 seconds), and low transaction costs (about $0.01 per transaction).
The native asset of Cosmos is ATOM, which users can stake to contribute to network security and earn staking rewards and a share of transaction fees.
Recently, the Cosmos community approved a proposal to cap the inflation rate of the ATOM token at 10%, down from the current rate of about 14% and a cap of 20%. This change is expected to reduce the number of new ATOM tokens entering circulation, impacting staking rewards and the network’s overall security.
The proposal was contentious, with the “Yes” option receiving 41.1% of the vote and the “No” option receiving 31.9%. Despite the debate, the proposal saw the highest voter turnout in the history of the Cosmos ecosystem.
Conclusion
In conclusion, the top 10 cryptocurrencies to consider buying in February 2024 offer a diverse range of opportunities and risks. Bitcoin and Ethereum continue to be solid choices, given their established track records and strong market positions. However, newer entrants like Solana, Binance Coin, and Cardano present compelling alternatives with their innovative technologies and growing ecosystems. Avalanche, Polkadot, and Terra are also worth considering for their potential to disrupt various industries and gain widespread adoption.
Algorand and Cosmos, while less mainstream, offer unique features and strong development teams that could lead to future growth. As with any investment, thorough research and risk management are essential, especially in the volatile cryptocurrency market. Investors should carefully assess each cryptocurrency’s fundamentals, market trends, and risk tolerance before making any investment decisions.
