Cryptocurrencies have been gaining popularity in recent years. With Bitcoin (BTC-USD) and Ethereum (ETH-USD) hitting new highs, investors are increasingly interested in identifying the best cryptos to buy. The sentiment sharply contrasts with 2022, when the crypto market experienced a steep decline. However, it now looks like crypto winter might soon be over.
Notably, the New York-based investment bank H.C. Wainwright has bestowed a “buy” rating on Coinbase (NASDAQ:COIN), the largest cryptocurrency exchange in the U.S. The rating comes despite the recent high degree of regulations imposed on the industry.
According to the bank, the company is in a great position to gain from the explosive growth of the worldwide digital asset economy as the slump period known as the “crypto winter” concludes.
The investment bank’s view is shared by other key players in the industry, as evidenced by a report from Standard Chartered analyst Geoff Kendrick on Monday.
According to Kendrick, the recent failures of mid-sized financial institutions in the U.S., such as Silicon Valley Bank (OTCMKTS:SIVBQ), are helping to make the case for Bitcoin.
In addition, he refers to the stabilization of risk assets and rumors of further monetary easing by the Federal Reserve, potentially paving the way for Bitcoin to reach the $100,000 mark.
However, cryptocurrencies are daunting, especially for those new to the space. Despite the recent positive momentum, not everyone is comfortable with trading cryptos. With so many digital assets, knowing which ones to buy cannot be easy.
That is where this list comes in handy.
And once you are done with this list, please check out these two articles. They offer more advice from my side for those looking to navigate the tricky waters of crypto. Once you finish those, check out this more expansive list from my colleague Josh.
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Charles Hoskinson, a co-founder of Ethereum, established Cardano (ADA-USD) as a proof-of-stake blockchain in 2017. The blockchain prioritizes energy efficiency and is a developer-friendly ecosystem for decentralized applications (dapps).
Cardano’s Ouroboros proof-of-stake algorithm gives more mining power based on coin ownership. POS is a less risky alternative to proof-of-work. Cardano aims to improve upon Bitcoin and Ethereum, addressing issues like POW.
Regarded as one of the most sophisticated blockchains, Cardano can handle up to a million transactions per second due to its speed and technological advancements.
Cardano can be understood by breaking it down into layers. Transactions have two components: sending tokens and the conditions. The settlement layer allows sending and receiving ADA coins. The computation layer enables creating and entering smart contracts.
Due to energy efficiency, Cardano’s smaller footprint is appealing to investors for faster and cheaper transactions. In 2021, a hard fork enabled smart contract deployment, and a Vasil hard fork in September 2022 aims to improve scalability.
AdaSwap, a Cardano platform for decentralized finance apps, recently launched a test version. AdaSwap could enhance Cardano’s Web3 network status and increase its coin value.
According to CoinDesk data, ADA, the native token for Cardano, is up almost 66% this year. As crypto winter fades into the background, the time to take advantage is now.
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Polkadot (DOT-USD) is a blockchain interoperability protocol. It connects different chains, exchanges data, and processes transactions for parachains securely. Polkadot’s security also enables developers to create their blockchains.
Ethereum’s core founder Gavin Wood created Polkadot with a constantly circulating token supply. Polkadot is a rising cryptocurrency, threatening high-ranking coins like Ethereum and gaining popularity. Despite this, Bitcoin remains at the top of the list.
Polkadot’s native token operates on its blockchain, storing data like a permanent, uneditable record. The blockchain ensures transparency and decentralization, making it more secure than a single bank or entity’s control.
Polkadot is seen as a progression for blockchain technology, with scalability and growth potential.
Developers released a roadmap for scalability, parachain development, cross-chain communication, and more, boosting growth and value.
Polkadot’s interactivity attracts investors with the ability to link and create blockchains. Developers’ interest catches investors’ attention.
Bitcoin and Ethereum’s value requires buying fractions of coins, while Polkadot at under $6 is more affordable and enticing.
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Chainlink (LINK-USD) is a decentralized oracle network that provides input on external data sources. Smart contracts help it respond to input, which Bitcoin and older blockchains struggle with.
Chainlink launched on Ethereum but is blockchain agnostic, able to work with other blockchains. Its role in the real-world implementation of blockchain tech is significant.
The blockchain is secure for transactions but can’t take input from off-chain sources. Decentralized oracles, like Chainlink, can provide smart contract input from off-chain data like fiat currencies, weather, and sports scores.
Smart contracts respond to input. Bitcoin processes a limited range of input, while Ethereum supports programmable smart contracts.
Similar to Bitcoin and Ethereum, Chainlink’s native token LINK is utilized to fund project growth and serves as an incentive for users to participate in mining.
The LINK token was introduced in 2017 and remained below $1 until 2019. Subsequently, the price increased from under $2 in 2020 to $36 in February 2021. Nevertheless, the value of LINK has since declined from its peak and has yet to recover to that level.
On the bright side, the recent price momentum is solid. The LINK token has been up almost 30% since the start of the year. Despite the increase, the token still trades at an affordable price point for you to jump on.
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.