If you’re asking what the best crypto to buy now is, you’ve come to the right place. We’ve filtered the signal from the noise to bring you a focused list of cryptocurrencies that show real promise in 2024. Ready to invest? Our guide provides the clarity you need right now.

Key Takeaways

• Low cap cryptocurrencies such as Pluton (PLU), Robonomics Network (XRT), Somnium Cubes (CUBE), and Inverse Finance (INV) offer high reward potential with unique features like scalabiility and deflationary mechanisms, which might be lucrative for early investors.
• While Bitcoin, Ethereum, and Solana are established high market cap cryptocurrencies, their large valuations might limit potential for future exponential returns, and they face growth limitations due to various technological and regulatory challenges.
• Decentralized Finance (DeFi) and blockchain projects continue to evolve with new players offering innovative solutions in smart contract platforms and DeFi tokens, challenging traditional financial paradigms and expanding blockchain interoperability.

Exploring Low Cap Cryptos: High Reward Potential in 2024

The potential for significant returns from low cap cryptocurrencies like:

• Pluton (PLU)
• Robonomics Network (XRT)
• Somnium Cubes (CUBE)
• Inverse Finance (INV)

is alluring. These cryptocurrencies offer unique value propositions, such as distinctive technological solutions and sustainable utility within their ecosystems, suggesting a high growth potential.

The potential for great returns is driven by their capability to meet market needs with their unique solutions and services, making them some of the best crypto options available. Some of the promising features of these cryptos include:

• High scalability
• Enhanced security measures
• Fast transaction speeds
• Low transaction fees

Investing in the best crypto to buy among these cryptocurrencies could yield significant rewards for early crypto investors, especially when using reliable crypto exchanges to find the right crypto to buy in the cryptocurrency markets.

Pluton (PLU) – The Next-Level Rewards Crypto

Pluton (PLU) is the native reward token of the Plutus financial ecosystem. It has the following features:

• It is earned through Crypto Rewards and Perk Rewards on transactions.
• PLU unlocks more perks and increases reward rates up to 9%.
• It can be converted into fiat.

The Pluton Rewards Pool is allocated entirely to the community for awarding Plutus Card shoppers with rewards. Pluton tokenomics are designed to maintain a low circulating supply with a desirable utility and increasing difficulty level to ensure the longevity of rewards. The current circulating supply of PLU is 4.7 million, with a mechanism in place that makes it a deflationary token, as increased demand for PLU impacts its value and reduces the emission rate from the Rewards Pool.

Robonomics Network (XRT) – Pioneering the Future of Smart Cities

Robonomics Network’s XRT token operates IoT devices atop Ethereum and within the Robonomics parachain in the Polkadot ecosystem, bridging the gap between IoT and blockchain technology. XRT leverages tools from independent teams in Polkadot (Kusama) and Ethereum communities, facilitating multi-chain interactions and services for IoT applications. The token’s economy is structured to incentivize the development and maintenance of decentralized networks for smart cities and Industry 4.0.

XRT facilitates operations such as slot renewal in Polkadot and rewards stakeholders. It features a burn mechanism to control inflation, enhancing the network’s robustness for future applications. The incremental issuance of XRT, controlled through on-chain voting by token holders, supports the reward system for parachain collators, ensuring network sustainability.

XRT, by paving the way for the implementation of decentralized urban infrastructures, is set to become a cornerstone for smart city developments, closely linked to the growth of Industry 4.0. XRT’s ability to enable advanced IoT operations and automation across multiple blockchain platforms heralds its potential as a pioneer in the advent of smart cities.

Somnium Cubes (CUBE) – Virtual Reality’s Crypto Asset

Somnium Space is a decentralized social virtual reality world that uses blockchain technology. Here are some key features of the platform:

• It uses blockchain technology and CUBE, its native ERC-20 cryptocurrency token, for in-world transactions.
• It is accessible with all major PC VR headsets.
• It provides a Unity SDK toolkit for users to enrich their virtual reality experience by uploading avatars, customizing environments, and adding animations.
• Within the virtual world, CUBE tokens are used for accessing a wide range of experiences, including cinemas, amusement parks, and user-generated museums or performances.

Significant strides for CUBE include strategic partnerships with companies like Sony and Gemini, along with notable investments and developments. These factors contribute to its market capitalization of $98 million and a staggering 7,667% ROI since inception.

Inverse Finance (INV)

Inverse Finance (INV) employs a groundbreaking decentralized approach to asset management, leveraging smart contracts and the blockchain to offer unprecedented autonomy and security to users. Investors, utilizing INV, can participate directly in the asset management process, bypassing traditional financial intermediaries, thus democratizing access to investment strategies. INV implements advanced algorithms and machine learning techniques within its blockchain infrastructure to optimize asset allocation and portfolio management.

The framework of INV also includes multi-signature security features and transparent audit trails to ensure every transaction is quick, secure, and easily verifiable by any party involved. INV’s proposal to integrate cutting-edge technologies like machine learning with blockchain for asset management presents a viable threat to conventional financial institutions, which could result in significant shifts in how investment services are delivered and consumed.

Navigating High Market Cap Cryptos: A Comparative Look

Investors are frequently warned not to default to popular high market cap cryptocurrencies such as BTC, ETH, and SOL for investments, given their large valuations suggest a limited potential for future high returns. The possibility of short-term 1000x gains on Bitcoin is seen as likely over due to its already substantial market recognition and capitalization.

Bitcoin’s dominance in the cryptocurrency market is significant, given it is the largest cryptocurrency by market capitalization. However, Bitcoin faces growth limitations due to its slower transaction speeds and lack of additional features when compared to new emerging cryptocurrencies.

Bitcoin (BTC): The Pioneer’s Plateau

Bitcoin’s long-term growth may be hindered by its decreasing block reward, as this could lead to reduced profitability for miners and potentially compromise the security of the network. Concerns about Bitcoin’s proof-of-work consensus model and its environmental impact could lead to government restrictions or taxes, negatively affecting Bitcoin’s market value.

Ideological conflicts within the Bitcoin community, particularly over transaction inscriptions, have the potential to cause divisions that may adversely influence Bitcoin’s functionality and market value. The verdict on pending spot Bitcoin ETF applications and regulatory changes like the expansion of the Bank Secrecy Act could play a significant role in determining Bitcoin’s price trajectory and market stability in 2024.

Ethereum (ETH): Beyond the Boom

Ethereum is the second-largest cryptocurrency by market capitalization, recognized for its pioneering smart contract technology since its launch in July 2015. From April 2016 to the end of 2023, Ethereum experienced a staggering growth of 21,189%, highlighting its significant historical performance and market uptake.

Ethereum’s ambitious roadmap, including the shift to a proof-of-stake cryptocurrency and scalability solutions like Ethereum 2.0, positions it for continued innovation and growth. Potential institutional adoption of Ethereum, akin to that of Bitcoin, could significantly boost its market presence and enhance its value proposition for investors.

Solana (SOL): Assessing the Saturation Point

In 2021, Solana saw immense growth in adoption, followed by a significant gain of over 500% over the year 2023. As of late 2023, Solana’s native token (SOL) was priced at $94.97. Solana’s key features include:

• High-speed and high-volume transactions
• Scalability and efficiency
• Enabled by its unique hybrid consensus mechanism that combines Proof of History (PoH) with Proof of Stake (PoS)
• Allows for processing thousands of transactions per second with minimal fees.

The potential for Solana’s future returns may be questioned due to increased competition with other high-performance blockchains, market saturation, and the possibility of value dilution influenced by the influx of new projects within its ecosystem. Despite these challenges, investors considering Solana are drawn by its safe, fast transactions, lower costs, strong community support, and continuous development, all of which contribute to its potential for long-term success.

Decoding Market Capitalization in Crypto Investments

The market capitalization in the crypto market, representing the total value of all mined coins, is computed by multiplying the current price by the circulating supply. Market cap is a crucial factor for investors to evaluate the true value of a cryptocurrency, looking at aspects like trading volume and liquidity which affect price stability. A cryptocurrency’s market cap serves as a key indicator of its potential for growth or decline, which can guide investors in predicting future performance.

Investing in small or mid-cap cryptocurrencies can offer significant growth potential but carry higher risks, whereas large-cap cryptos are typically less volatile and considered safer but with less room for exponential growth.

Smart Contract Innovators: Blockchain Projects to Watch

The blockchain industry is brimming with innovative projects. Here are some notable ones:

• Solana: Demonstrated significant scalability with its network handling over 2,500 transactions per second and claims of reaching 50,000, using an innovative proof-of-stake and proof-of-history hybrid mechanism.
• Ethereum: Actively enhancing its smart contract capabilities with anticipated sharding upgrades to increase its transaction throughput and meet the demands of its dApps ecosystem.
• Polkadot: Established a name in the blockchain space for enabling interoperability between different networks, aiming to improve scalability, security, and functionality.
• Quant: Provides a communication layer for blockchain interoperability through its revolutionary Overledger network.
• StarkWare: Aims to reach new heights in transaction processing with up to 160,000 transactions per second using zk-STARKs technology.

These crypto projects are pushing the boundaries of blockchain technology and driving innovation in the industry.

Built on the Hedera Hashgraph, this cost-effective and scalable project stands out among its peers, while SingularityNET opens new frontiers by integrating AI into blockchain through a decentralized platform. Mina Protocol creates a lightweight blockchain landscape, allowing for an array of use cases and AGIX from SingularityNET emerges as a compelling choice due to its blockchain-based AI service marketplace. Toncoin leverages robust technology and a strong community, originating from a blockchain platform initiated by Telegram’s team, highlighting its multi-blockchain approach and potential as an emerging token. Aptos, with top 100 market cap ranking, gains momentum with technical expertise from Aptos Labs, showing potential for Web3 innovations.

Smart Contract Platforms Beyond Ethereum

Coins referred to as ‘Ethereum killers’ are developed to offer faster, cheaper, and more scalable alternatives to Ethereum, aiming to surpass it in terms of smart contract capabilities. Some examples of these platforms are:

• Cardano, which uses a scientific approach and the energy-efficient Ouroboros consensus
• EOSIO, which focuses on usability and scalability
• Avalanche, which provides high performance with its unique consensus mechanism

These platforms offer distinct smart contract capabilities and are potential competitors to the Ethereum network.

Harmony and Polkadot aim to improve interoperability, with Harmony focusing on scaling Ethereum applications and Polkadot offering a multi-chain ecosystem through its relay chain and parachains. New-generation platforms such as NEAR Protocol, Klaytn, and Algorand highlight their unique propositions of high speed, low fees, and ease of use, demonstrating the industry’s trend towards more efficient blockchain solutions.

The Rise of Decentralized Finance (DeFi) Tokens

Decentralized Finance (DeFi) aims to forge an internet-native financial system utilizing blockchain technology to supplant traditional intermediaries and mechanisms of trust. This system encompasses a swath of financial services including lending platforms, prediction markets, and derivatives, all running in a decentralized setup exclusively with cryptocurrencies. The DeFi market’s size, commonly gauged by total value locked (TVL), is substantial with the TVL hovering around $77 billion. Leaders in the DeFi space like Yearn Finance and Aave are innovating with decentralized solutions for lending aggregation, yield generation, insurance, and trustless lending and borrowing.

The allure of DeFi stems from its prospect of constructing a new financial architecture featuring reduced fees, rapid transactions, and enhanced transparency. Despite its potential, DeFi is viewed as a Wild West rendition of finance, brimming with opportunities for growth but marred by challenges like the absence of investor safeguards and exposure to fraud and technical exploits.

DeFi aspires to transpose the entire spectrum of traditional finance instruments onto the blockchain, thus rendering the traditional financial system trustless and fully programmable. The impact DeFi is poised to have includes bringing well-established banking operations onto the blockchain, magnifying transparency and eliminating intermediaries in financial transactions.

Unveiling the Power of Native Tokens in New Blockchain Projects

Tokens created on a specific blockchain, designed initially for internal use within that ecosystem, are known as native tokens. They can play a variety of roles, including being a currency, a means of rewarding participants, or facilitating operations within their respective blockchain projects. Examples of native tokens include Bitcoin (BTC), Ether (ETH), Binance Coin (BNB), Cardano’s ADA, and the stablecoin USDC. A native token’s role and utility are not confined to a specific purpose as long as it was minted on its blockchain, which might include governance, securing the network, or enabling smart contracts and dApps.

Forks of blockchains create new native tokens, as the forking process involves creating a new blockchain and token from the original, which can then serve unique or modified functionalities. Native tokens can also result from the expansion of a token across multiple blockchains, as seen with USDC which became native to several chains through minting on each of them. The distinction between a ‘coin’ and a ‘native token’ is that a native token is specifically created and utilized within the blockchain it was minted on, while ‘coin’ is a broader term for cryptocurrencies.

Crafting a Balanced Crypto Portfolio: Diversification Strategies

Diversifying a crypto portfolio can involve holding various types of tokens such as:

• Payment tokens
• Security tokens
• Utility tokens
• Governance tokens
• Basic attention tokens
• Gaming tokens
• Non-fungible tokens (NFTs)

The inclusion of meme tokens like ApeCoin, with specific purposes such as facilitating decentralized Web3, can enrich portfolio diversity. Meme tokens are speculative and can offer high returns, but they should be included cautiously in a portfolio due to their volatility and dependence on social media and community support.

While some meme tokens like Dogecoin and Shiba Inu have large market caps, the majority have limited value, making research crucial to identify potential scams or viable investments. Industry-focused diversification includes investing in cryptocurrency projects that cater to a range of sectors such as healthcare, supply chains, and entertainment. A balanced crypto portfolio can also contain stocks of crypto-focused companies, blockchain-based bonds, and real estate tokens representing fractional ownership.

Investors can utilize different investment vehicles like digital wallets, taxable brokerage accounts, and cryptocurrency IRAs to hold and invest in crypto assets. Diversifying a portfolio can reduce price volatility and give investors the flexibility to rebalance holdings as the market changes, although it requires a tailored strategy that aligns with individual objectives and risk tolerance.

The Evolution of Decentralized Exchanges (DEXs)

Uniswap is a decentralized cryptocurrency exchange that performs trades using liquidity pools supported by the Ethereum blockchain and does not rely on an order book. The governance of Uniswap is handled by holders of the UNI token, who have the authority to submit and vote on proposals.

PancakeSwap, a decentralized exchange on the Binance Smart Chain, has gained recognition for its low fees. It is also known for providing quick transaction speeds. During a DEX offering, a significant network congestion issue occurred, where botting activity generated 400,000 transactions per second, ultimately crashing validators due to memory exhaustion.

DeFi Coin (DEFC) serves as the native currency of the DeFi Swap DEX, underpinning the ecosystem’s transactions. Uniswap protocol recently reported a daily trading volume of $11.84 billion, highlighting the platform’s high level of activity and user engagement.

Stablecoins, essential to the DeFi markets, such as those pegged to fiat currencies like the U.S. dollar, provide investors with a stable asset for trading without the need for constant currency conversion.

Securing Your Crypto Holdings: Best Practices for Investors

For the secure transaction and storage of cryptocurrencies, the following steps are crucial:

1. Use a crypto wallet, either a hardware wallet or software wallet, to securely store your cryptocurrencies.
2. Back up your wallet seed words on paper and store them securely to prevent loss of access to your crypto holdings.
3. Choose trustworthy platforms with strong security features, such as cold storage for majority crypto funds and two-factor authentication, for enhanced security on exchanges.

By following these steps, you can ensure the safety of your cryptocurrencies.

It is advisable to transfer cryptocurrencies to an external wallet for long-term storage, instead of keeping them on an exchange. Here are some tips to protect your crypto holdings:

• Avoid offshore exchanges as they may not comply with regulations, posing higher risks.
• Ensure the exchange has a robust verification process.
• Never enter seed words or private keys on suspicious websites.
• Avoid fake wallets and malware.
• Only download wallets from official websites.

Following these tips will help protect your cryptocurrencies from scams and security breaches.

Crypto networks are generally secure against hacking due to the need for valid signatures and their shared database structures. Software wallets, which can be self-hosted or custodial, and hardware wallets are the primary types for securely managing cryptocurrency holdings. For long-term storage, using a hardware wallet like those offered by Ledger and Trezor is highly recommended.

Tax Implications for Crypto Traders: Navigating Crypto Taxes

US taxpayers are required to report all crypto capital gains or losses and income earned from crypto on their taxes, bearing the responsibility for tracking their transactions, regardless of whether exchanges provide complete cost basis information or not. The IRS views cryptocurrency as property, meaning all disposals, including sales and trades, must be reported for tax purposes, and taxpayers must distinguish between short-term and long-term capital gains for differential taxation.

Cryptocurrencies acquired through hard forks and airdrops are taxable, often at the time of gaining control over the new assets, though valuing them for tax reasons can be complex and the IRS guidance on these events has created some confusion.

Here are some key points to keep in mind:

• Cryptocurrencies acquired through hard forks and airdrops are considered taxable income.
• Valuing these assets for tax purposes can be challenging.
• Losses from theft or negligence are not typically deductible.
• Investment losses can offset other taxable income.
• Taxpayers can correct genuine mistakes on their returns using Form 1040-X.

Non-compliance in reporting cryptocurrency for taxes can lead to prosecution for evasion or fraud; thus, the IRS advises acting in good faith and being consistent and documented in the face of sub-regulatory guidance.

Summary

As we have explored in this guide, the crypto market offers a wealth of opportunities for high returns, but it requires understanding and strategic planning. From low cap cryptos like PLU, XRT, CUBE, and INV that offer unique value and high growth potential, to the limitations of high market cap cryptos like BTC, ETH, and SOL, understanding these dynamics is key. The role of market capitalization in predicting potential growth or decline is crucial, as is recognizing the innovation in blockchain projects and the rise of DeFi tokens. The power of native tokens in new blockchain projects should not be underestimated, and the importance of diversification strategies in crafting a balanced crypto portfolio is paramount. Understanding the evolution of DEXs, securing your crypto holdings, and navigating crypto taxes are all essential parts of navigating the crypto market. With this knowledge, you are better positioned to make informed decisions and potentially yield high returns in the dynamic world of cryptocurrencies.

Frequently Asked Questions

Which crypto is best to invest now?

The best cryptocurrencies to invest in right now are Pluton (PLU), Robonomics Network (XRT), Somnium Cubes (CUBE), and Inverse Finance (INV). Consider diversifying your investment across these options.

What is the best way to buy cryptocurrency?

The best way to buy cryptocurrency is through reputable crypto exchanges like Coinbase, Uphold, Kraken, and Gemini, as they allow you to invest directly with USD and offer a secure platform for buying and selling. You can also access the crypto markets online or through mobile apps, making it convenient to engage in cryptocurrency transactions.

What are low cap cryptocurrencies and why should I consider investing in them?

Consider investing in low cap cryptocurrencies such as PLU, XRT, CUBE, and INV due to their unique value propositions and high growth potential, despite their smaller market capitalizations. Invest wisely and conduct thorough research before making any investment decisions.

What is market capitalization and why is it important in crypto investments?

Market capitalization in cryptocurrencies represents the total value of all mined coins, and it is crucial for investors to assess the true value and potential growth or decline of a cryptocurrency.