Amid Donald Trump’s victory in the 2024 US presidential election, the cryptocurrency market is experiencing a genuinely bullish surge, with Bitcoin (BTC) setting new all-time highs day after day. As a result, more and more people are turning their attention to the digital asset industry and even considering investing.
In our new comprehensive guide, we’ve explored whether it’s worth investing in cryptocurrencies in 2024 and identified the high-potential cryptocurrencies, including coins, tokens, and stablecoins, that hold the most promise.
Introduction to Cryptocurrency Investment
Risks and Considerations
Despite the potential benefits, any financial investment in cryptocurrencies comes with its own set of risks. Among the most commonly noted crypto investment risks are:
1. Market Volatility
Market volatility drives the dynamism of the crypto market. This term refers to rapid price changes in cryptocurrencies over relatively short periods. As you might expect, prices can fluctuate both upwards and downwards. Due to this price volatility, investors could see their investments grow or, conversely, suffer losses or even forfeit their funds altogether.
2. Regulatory Changes
At present, there is no clear legal framework for dealing with digital assets. In addition, there’s no unified standard — regulations vary significantly from one country to another and are subject to frequent changes. This means that what is legal today could be outlawed tomorrow. One example of this regulatory uncertainty is the ban on stablecoins like Tether (USDT) within the EU.
By the end of 2024, new regulatory rules are expected to come into force. This legislative package, titled Markets in Crypto Assets (MiCA), will introduce new crypto regulations that could transform the rules of the market. The itez team has covered these potential changes in detail in this guide.
3. Security Concerns
Unfortunately, the crypto market is a frequent target for cybercriminals, resulting in a constant flow of headlines about hacking attacks or new scam tactics. The largest breach of 2024 was the WazirX exchange hack, which saw nearly $235 million stolen. You can find the full list of 2024’s hacks here.
Another focus is the North Korean hacking group known as Lazarus Group. This year, these cybercriminals have not only engaged in hacks but also expanded into new scam techniques. For example, they’ve used phishing and social engineering, allowing them to access funds and data by exploiting human factors and errors rather than relying solely on technical hacks.
Importance of Diversification
One of the main tools available to investors for minimising these risks is crypto portfolio diversification. The essence of this strategy is to distribute funds evenly across different assets (or even asset classes). This way, if one of the assets suddenly drops in value after your investment, the gains or stability of other investments can help offset your losses, reducing the potential impact.
Here are a few ways to approach diversification in investments:
1. By asset category. This involves dividing your investments across Bitcoin, altcoins, and tokens. If you're unclear on the distinctions between coins and tokens, check out our in-depth article on this topic.
2. By market capitalization. You could split your investments between large-cap and mid-cap assets. Large-cap cryptocurrencies are generally more stable, though they may offer less growth. Mid-cap assets, however, can sometimes yield higher returns.
3. By industry sector. There are many options here. The market features projects from various sectors, including decentralised finance (DeFi), artificial intelligence, and real-world assets (RWA). Conducting your own research can help you find the sectors that best align with your investment objectives.
It's important to remember that your portfolio should be tailored to your individual financial goals, risk tolerance, and investment horizon. Seek professional investment advice if you are unsure about any aspect of your plans.
Key Factors to Consider
Another surefire way to manage potential risks is to Do Your Own Research (DYOR). A classic approach to cryptocurrency market analysis can include:
1. Trading volume
This is one of the primary indicators to watch. Trading volume shows how much of a cryptocurrency has been traded over a given period, usually the past 24 hours.
High trading volume suggests strong investor interest in a cryptocurrency, with active buying and selling. However, be cautious — high trading volume might also indicate a sell-off. It’s wise to use this metric alongside others to get a clearer picture.
2. Market capitalization
Analysing this metric is straightforward — simply open any aggregator, such as the renowned CoinMarketCap. On the main page, you’ll find the most capitalised digital assets ranked dynamically as they frequently overtake each other.
A higher market cap usually points to a more stable cryptocurrency, offering a lower risk profile for investors.
3. Crypto market trends
Market trends often intertwine with several other factors, such as regulation and investor sentiment. In other words, market trends have a strong human element.
Track cryptocurrency adoption trends — see which countries, companies, and services are accepting them. A high adoption rate is often a promising indicator of future growth.
4. Blockchain technology
Finally, pay attention to the underlying technology of any project that interests you. If you’re curious enough, you might explore the project’s website or even review the white paper, where developers explain the product’s technical aspects in detail.
Top blockchains ranked by global traffic share as of November 2024. Source: CoinGecko
A basic understanding of the blockchain a cryptocurrency runs on is usually sufficient. Some are known for speed (e.g., Solana), others for security (e.g., Ethereum), and some for low costs (e.g., Tron). This insight helps you choose the coin or token that best matches your needs. For more on blockchain, our guide will help you out 😉
To gauge the potential of any network, consider its Total Value Locked (TVL). This metric reflects how much capital users have invested in a particular blockchain. Higher TVL usually signals more active trading and greater investor confidence.
Combining these key factors will help you get a well-rounded view of the cryptocurrency you’re considering. A thorough analysis is essential to safeguarding your investments!
Top Cryptocurrencies for 2024
Now that we have a better understanding of the risks and key selection criteria, let’s dive into the most exciting part: the list of the best crypto to invest in 2024.
🥇 Bitcoin (BTC). Often referred to as "digital gold," Bitcoin is the world’s first and most renowned cryptocurrency. With the longest track record, the largest market capitalisation, and a solid community of investors and enthusiasts globally, BTC has already demonstrated resilience and potential for long-term growth, making it a cornerstone for many portfolios. Throughout November, Bitcoin has consistently reached new all-time highs, the latest being over $93,000. This bullish momentum is driven by positive news from the US: the election victory of crypto-friendly candidate Donald Trump and encouraging signs of slowing inflation.
🥈 Ethereum (ETH). Consistently ranking as the second most prominent digital asset, Ethereum offers a more accessible entry point for investors due to its lower price compared to Bitcoin. Beyond that, Ethereum is the foundation of various second-layer blockchains (e.g., Arbitrum), decentralised applications (dApps), and smart contracts. This active ecosystem development signals strong long-term potential for investors.
🥉 Solana (SOL). Currently the third most capitalised cryptocurrency after BTC, ETH, and the Tether stablecoin USDT, Solana is a young and fast-growing blockchain platform that offers technological innovations with faster and cheaper transactions than even Ethereum. Recently, news of fintech broker Robinhood relisting Solana sparked a new growth wave, pushing SOL past the psychologically important $200 mark.
Top 10 crypto assets by market cap by November, 15. Source: CoinMarketCap
Emerging Cryptocurrencies to Watch
Alongside established market leaders, young tokens and meme coins are of particular interest to investors. These asset categories tend to exhibit strong growth rates, as their price dynamics are not yet fully stabilised.
🥇 Toncoin (TON). This cryptocurrency entered the market relatively recently, in late 2021. It is the native token of The Open Network (TON), a robust cryptocurrency platform designed for quick and secure transactions without intermediaries. TON is also actively supported by the popular Telegram messenger, which boosts both its popularity and resilience. As of this review, TON ranks 12th in terms of market capitalisation. You can find more details about Toncoin and its potential in our dedicated article.
🥈 Pepe (PEPE). This meme coin arrived even more recently, in April 2023, and quickly gained investor popularity. As of this writing, it ranks 15th in overall market capitalisation. PEPE’s rise even sparked a meme-coin frenzy in 2023—a trend that continues today. In mid-October, PEPE set a new all-time high at $0.00002597, showing that this meme coin still has plenty of potential left.
🥉 Peanut the Squirrel (PNUT). PNUT is a meme coin created in memory of a squirrel named Peanut, who was recently put to sleep in the United States. This event sparked significant public outcry, with notable influencers like Elon Musk criticising the authorities’ actions. Riding a wave of hype, this token, launched just this November, has been setting new records day by day and already leads in the meme coin segment by trading volume and market cap. This story again highlights the boundless potential of even the youngest coins when they emerge at the right time and place.
Top 10 meme coins by market cap by November, 15. Source: CoinMarketCap
Stablecoins and Their Role in Investment
Nonetheless, the primary portion of an investment portfolio should not consist of promising yet volatile meme coins but of more stable digital assets. A prime example of this is stablecoins.
🥇 Tether (USDT). This is perhaps the best-known stablecoin on the market, consistently ranked in the top 5 assets by market capitalisation. USDT is pegged to the US dollar, which means its price will always match that of this global fiat currency. Having been on the market for 10 years, it has repeatedly demonstrated its resilience and reliability.
🥈 USD Coin (USDC). The next choice for stablecoins investment is USD Coin, also pegged to the dollar. The coin is backed by cash and short-term US Treasury bonds, making it another dependable tool that investors often add to their portfolios.
🥉 Euro Stablecoins. Another noteworthy digital asset is euro-pegged stablecoins, which offer unique advantages, especially for European users or businesses dealing in euros. Examples include STASIS EURO (EURS) and EURC (EURC). You can learn more about euro-pegged stablecoins in our comparative analysis.
Top 10 stablecoins by market cap by November, 15. Source: CoinMarketCap
Conclusion
The crypto market is a relatively young space that presents outstanding opportunities for earning. The key to success here lies in a carefully and intelligently diversified investment portfolio.
In this guide, we've introduced you to some of the best crypto investments, covering market leaders with long-standing histories and stable performance, volatile meme coins with high growth potential, as well as dependable and resilient stablecoins pegged to global fiat currencies.
However, it's essential to remember to trade only with funds you can afford to lose. Investments in cryptocurrency carry substantial risks, but a balanced approach to any financial investment, along with adherence to risk and money management principles, will help you strike a balance between profit and risk.
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Here are three other cool articles:
How Trump will transform the crypto industry — top 10 initiatives
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This article is not investment advice or a recommendation to purchase any specific product or service. The financial transactions mentioned in the article are not a guide to action. It’s not intended to constitute a comprehensive statement of all possible risks. You should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.
