Best Cryptocurrencies to Invest - Crypto Portfolio 2024

A lot of people who are just starting to invest their own money, starting with cryptocurrencies, can't make a portfolio. Specifically a portfolio, not a chaotic set of assets. It is often caused by the fact that people tend to get only easy and fast money when entering the world of cryptocurrencies, multiplying the start-up capital several times. At the same time, no one studies the market structure, peculiarities of individual assets, there is no analysis, as a result, there is no complete picture of the situation. In this article, we will try to understand how to compose a crypto portfolio in 2024 and consider several assets with great potential for the future.

Rules for building a crypto portfolio

Many may think that crypto for investing in 2024 is not the best option due to high volatility, frequency of scams and other issues. However, the right approach and current ground rules can help to avoid problems when dealing with and building a portfolio. Although the rules described below are "kind of familiar and knowable," it is their ignoring that causes the most frequent mistakes:

• Form clear goals and investment deadlines for yourself. This is an important factor for the cryptocurrency market because of the sharp changes in quotes, which are much more volatile than the stock market. Emotions can be dependent on it, which may lead to a wrong decision. In order not to be afraid and not to get worried in the down phase of the market and not to feel FOMO from lost profits, you should clearly set goals, priorities for each individual asset.


• Stay safe from jurisdictional risk. Cryptocurrency regulation has been tightening lately. The trend will continue through 2024, so invest in cryptocurrencies that don't fall under regulation or remain invulnerable.


• Diversification. The cryptocurrency sphere and the market as a whole is a big niche with different projects, opportunities and ecosystems. Based on the asset, the level of risk is also different, so make a portfolio with low, moderate and high risk, diversifying your own funds. After distribution into sectors, it should be decided which sectors have a fundamental basis for global investment.


• The point of entry. It is always important to evaluate the market situation correctly, to understand and be guided by the global phases (upward, downward, sideways movement). Knowing your goal, understanding that you need to be with the asset for 1-3 years, it will help not to give in to emotions in a downtrend and on bounces to fix profits with re-entry into the asset. This is an important rule to follow. The point of entry into an asset plays an important role when working with the formation of a portfolio. Potential profits also depend on it.


• Rebalancing. This refers to trading assets to keep the percentage distribution. For example, a meme-coin went up and made more than 20% of the portfolio, even though the target was only 5-10%. Rebalancing would be a great allocation method. Over time, trends have been changing and in 2013 BTC forks were popular, in 4 years smart contracts took over the trend, in 2020 "ETH killers" were in the spotlight, in 2022 the initiative was taken by Game-Fi. Global trends, focusing on them when working with a portfolio, helps to multiply the amount invested without much risk or loss.

Many newbies have no idea when and which crypto to buy in 2024. They often enter the market at the peak of growth. Below we will analyze the most effective altcoins for a portfolio, which will be able to survive a bearish trend and give a significant profit during the growth phase. There are quite a few undervalued projects with strong fundamentals, indicators and potential for growth.

Top cryptocurrencies in a low-risk portfolio

A core portfolio should consist of fundamental assets that benefit people, grow and carry minimal risk of loss of invested funds. As a result, below are the top cryptocurrency investments for 2024 that any novice and seasoned investor should have.

Bitcoin

In the world of cryptocurrencies, Bitcoin is called the "grandfather", because it was the first one to bring people into this market, exactly the one everyone has heard of. It is perfectly suited for the role of "digital gold" and one shouldn't buy it to make a quick profit or to speculate. It is a long-term investment that allows you to balance your entire portfolio.

Features of the asset:

1. High liquidity.


2. Easy exchange for any crypto.


3. In some countries it is an official means of payment.


4. It is characterized by large capitalization.


5. Not subject to inflation due to limited issuance.

BTC coins can be mined, but it will require expensive equipment and additional expenses. It is more profitable to buy parts of the asset - satoshi (parts of Bitcoin).

Ethereum

The next major cryptocurrency is Ethereum, which is also the leader of other altcoins on the market. It operates on its own network, is in demand among developers of DEX-applications and smart contracts. It is considered to be the main competitor of Bitcoin and some analysts are sure that it is better to invest more money in it than in BTC, but it is everyone's choice. It is not a mistake to buy it as a major investment for the long term.

The ecosystem itself adds new protocols that enable:

• Significantly change the energy efficiency of the token for the better.


• Increase transaction speeds.


• Reduce the amount of commission costs for internal execution of transactions.


• Guarantees high security for transfers.

The coin's growth can be driven by the interest of large IT companies, startups, and investment funds using ETH for diversification. The ecosystem as a whole has proven its reliability since its inception.

Avalanche

The Avalanche ecosystem with an AVAX token, which is needed to perform calculations inside. The platform itself has a wide range of features:

• Launch ready-made DeFi projects.


• Creating and launching large corporate networks on blockchain.


• Digital currency trading, including financial assets, including stocks and bonds.

The ecosystem is an amalgamation of subnets and modules. Such a transition helps to run parallel processes, speeding up the work with data.

The native AVAX token is advantageous to have in a portfolio for the reason that:

• Growth in capitalization.


• Attracting traders and institutional investors. Powerful funds have already invested in the asset.


• A planned deflationary mechanism to protect the asset from inflation.


• A high level of decentralization. The developer holds less than 5% of the total number of coins.


• Storing assets in an ecosystem wallet with stacking capabilities.

In the ecosystem every participant can use very fast transactions, the speed does not exceed a second.

Polygon

The project is based on the Ethereum network. Matic is the token of this platform. The developers' goal is to bypass the capabilities of Ethereum, solving an important task of cryptocurrencies, which is scalability. As the number of transactions increases, the verification methodology becomes more complex, resulting in lower throughput. The Polygon network addresses this problem through additional tools that can:

• Increase the speed of transactions.


• Increase security.


• Make it easier for people to work with DEX applications.

The main pluses of token, besides scalability:

• Minimal fees.


• Compatibility with blockchains.


• Active life and team work.


• Confidence on the part of the institutions.


• The possibility of stacking.

It is impossible to mine an asset, but it is easy to buy it through exchanges, exchangers and other available means, using fiat currency. Using exchangers for such transactions, it is important to pay attention to the reliability of the resource itself and the amount of commission.

Polkadot

Polkadot is a decentralized platform that allows the exchange of data between different blockchains. The project was created in 2016 by Gavin Wood, and positioned itself as the foundation of web3.

DOT is the native token of the Polkadot network, whose smallest unit is called Planck.

The options for using the token are:

• network management


• staking and rewards


• paying commissions on the Polkadot network

According to CrunchBase, Polkadot has received $336.7 million in funding. The capitalization of the project is $5 billion and the daily trading volume is $70 million. The project team is constantly updating the network, attracting new investments and users.

Cosmos

A full-fledged and very promising ecosystem that has great growth potential for a native ATOM token. A cross-platform solution that helps to link different blockchains in one product with efficient interaction with each other.

The growth of the asset is driven by a number of factors:

• The fundamentality of the project itself, which makes it easier for people to solve actual problems and enable new and unique ways of DEX-networks.


• There are many applications within the ecosystem, and the infrastructure itself works within some exchanges and physical corporations.


• Media personalities are interested in the coin, which causes the growth of quotations.

Binance coin

The BNB token is the official payment instrument of the popular Binance exchange. Analysts believe the exchange's cryptocurrency should be in the portfolio for the following reasons:

• Good growth of the token since the beginning of issuance.


• Stable operation of the exchange with the attraction of new audience.


• Asset approach for exchange and other transactions with other cryptocurrencies, there are additional discounts, reduced commissions, etc.


• BNB is used worldwide to pay for real goods and services (tickets, tech stores, etc.).


• The possibility of steaking for additional income.


• Regular "burning" of the token.

The easiest way to buy an asset is to use Binance exchange after registering and funding your account.

Arbitrum

Arbitrum is an Ethereum-based Layer 2 solution based on optimistic rollup technology. The main Arbitrum One network was launched in August 2021 and provided cheaper and faster transactions.

Arbitrum benefits:

• Faster transaction confirmation


• Scalability


• EVM compatibility

The initial supply of ARB native token is 10 billion. In March 2023, 12.75% of the supply was distributed between users and DAOs. Currently, the circulating supply of ARB is 1.275 million tokens.

DeFi Coin

A full-fledged digital financial instrument powered by blockchain. Decentralized finance provides:

• Easy access to finance.


• No payments to intermediaries.


• Complete transparency and security of transactions.


• Anonymity in working with finances.

This project with time could be the first competitor to classic banks and financial institutions, replacing traditional approaches, technologies, among them lending, loans, insurance risks, etc.

DeFi Coin's native token will provide other benefits as well. So holders get rewards for long-term ownership, there is interest-staking.

Cardano

Immediately after its launch, the project received a lot of attention. This is due to the use of a research approach and a carefully developed methodology. The creators of the ecosystem used mathematical methods, worked with prototypes and made tests of the network. This made it possible to:

• Achieve a secure operation of the entire algorithm, reducing the energy costs that affect performance.


• Increase the transaction speed for almost instant ADA token transfer between wallets.


• Tune Hard Fork to simplify and increase the reliability of the platform when making code changes.


• Get good scalability results.

ADA in an investor's portfolio lends itself well to long-term expectations rather than active trading. Volatility is not as high as other assets, but over the distance the coin shows good growth.

Top cryptocurrencies in a moderate risk portfolio

Unfortunately, no one can ever accurately predict cryptocurrencies for 2024, telling you exactly what to buy into a portfolio for potential profits. For this reason, it is better to divide a portfolio into risk groups. Assets with a moderate index may give more profit than the main portfolio, but there is also a chance of a 10-50 X or a few tens of percent of growth, not 10-50 X, but only a few tens of percent.

FLOW

A next-generation blockchain platform for digital assets, NFT and DEX applications, targeting a broad audience. The architecture is multi-node, innovative, and helps leverage scalability without sacrificing security. NBA Top Shot and Ubisoft are major partners in the project, giving it the ability to be a leader in gaming and NFT.

Flow in the 2024 portfolio will help choose to bet on the growth of digital media and decentralized cryptocurrency exchange.

MINA

The Mina protocol with a native MINA token is a new approach to blockchain. It is distinguished by its ultra-lightweight design and constant size. The project gives better scalability and minimum storage requirements, which improves efficiency, gives accessibility to any user. All this thanks to recursive zk-SNARK.

Everyone who buys MINA into their portfolio supports scalability and new blockchain technology solutions. Such an investment in 2024 has a very high potential for growth.

APT

This is a token that serves to protect anonymity. The main focus of the project is aimed at privacy and security in the world of cryptocurrency. The developers regularly add modern encryption methods, new protocols and the asset itself provides market participants with secure and anonymous financial transfers.

COMP

The native token of the Compound protocol is the DeFi platform. It is designed to simplify borrowing and lending with cryptoassets. Members of the platform receive interest and access to liquidity. The COMP token plays an important role for the development, growth landscape of decentralized finance.

EGLD

The Elrond Network project and its EGLD token is an innovative approach with a focus on the trilemmas of blockchain. These include decentralization, scalability and security. The use of Adaptive State Sharding and Secure Proof of Stake technology provides an opportunity to significantly improve availability and performance. This is helped by the EGLD token, which should be added to the portfolio for 2024 to support blockchain solutions.

HBAR

Hedera is a public distributed ledger designed to address scalability and high transaction costs. Unlike other blockchains, Hedera uses the Hashgraph consensus mechanism, which is based on a directed acyclic graph (DAG).

The network developers claim that confirming transactions on the Hedera network takes 3 to 5 seconds, costs $0.0001 in HBAR, and can process 10,000 such transactions per second.

TWT

Trust Wallet Token is a native token of the Trust Wallet cryptocurrency wallet. It is a multi-currency product with a high degree of security and usability. With coins, users can participate in the development of the project, work on its functionality and other innovations.

DYDX

The dYdX protocol token, which is a new cryptocurrency with support for the best decentralized derivatives trading platform. Traders have access to rich functionality, many trading tools, favorable commissions and a convenient menu. It is the first project that could cause a revolution in the DeFi world.

INJ

Injective Protocol (INJ) is a decentralized exchange that provides cross-network margin trading at 10k transactions per second. Unlike AMM exchanges such as Uniswap or dYdX, Injective Protocol uses an order book model instead of liquidity pools.

The role of the INJ token:

• Paying transaction fees


• Providing a PoS consensus mechanism

The protocol is built on the Cosmos blockchain. It utilizes cross-chain bridges that allow traders to access cryptocurrencies from platforms such as Ethereum and Polkadot.

LINK

Chainlink is an oracle network linking smart contracts with real information. It guarantees secure, reliable data flows. LINK makes any smart contracts more powerful, versatile and affordable. Investments in the asset indicate support for blockchain applications in 2024.

Top cryptocurrencies in a high-risk portfolio

This ranking includes high-risk assets. It is best to invest up to 5% of your total capital in them. In practice, only 1-2 out of 10 high-risk assets can remain in the bull market phase, but their profits completely cover losses and recover losses several times over. Investing $1,000 into this portfolio will allow you to earn 5-10 times or more than investing only in Bitcoin.

Dogecoin

The asset was originally created as a common joke, but the DOGE token was taken seriously by many market participants, especially after Ilon Musk's role in promoting the asset. He has invested large amounts of money in the cryptocurrency, actively participated in the community and constantly recalls the asset on Twitter. In addition, Tesla announced in 2022 that it would accept Dogecoin to pay for goods in its stores.

Analysts and experts believe that this meme has value not only because of Ilon Musk's tweets. Here are a few facts:

• The large capitalization of the project, which indicates the trust of users.


• Attracts traders low cost, investors, as a result increases the value of the coin.


• Stable development due to community.


• It is used as a means of payment. 4. For Doge you can buy hotel accommodations, airplane tickets, pay for TV-services, etc.

Since it remains a meme-coin, it is better to buy the instrument in your portfolio with a minimum share of funds.

PEPE

Pepe Coin (PEPE) is a memcoin built on the Ethereum blockchain. Since its public launch in April 2023, Pepe Coin has become one of the most popular cryptocurrencies for investment. PEPE has a daily trading volume of $32 million dollars.

Unlike DOGE, whose market capitalization exceeded $1 billion in almost four years, PEPE reached this figure in just three weeks after its launch. The token was purchased by more than 100 thousand investors, and it was also listed on major exchanges, including Bybit and Binance.

HFT

A token that is referred to as a high-frequency trading tool. It combines the best algorithms and high-speed execution to give an effective trading strategy with stable income. A state-of-the-art ecosystem including DeFi software and high-frequency strategies enables traders to make safe financial transactions with good profits.

FXS

Frax Protocol development token, an innovative stable coin system. The approach used is fractional-algorithmic, and the asset helps maintain the stability of the FRAX cryptocurrency while forming an adaptable DeFi ecosystem. The investment in FXS suggests that the investor is betting on the development of decentralized Stablecoins.

RNDR

An advanced asset for 2024, its mission is to transform the creation, operation and distribution of content using blockchain. Through the network, the project is able to give affordable and cost-effective rendering to designers, artists.

CHZ

Chiliz (CHZ) is a blockchain platform designed for the sports and entertainment industry. The goal of Chiliz is to enable sports teams, organizations and entertainment venues to interact with their fans using fan tokens.

CHZ works as both an ERC20 token on the Ethereum blockchain and a BEP2 token on the Binance Smart Chain. Users can buy and exchange fan tokens using CHZ on the Socios platform.

Determine the risks before adding CHZ to your crypto portfolio in 2024. This is a new project that takes time to develop. Nevertheless, the concept of blockchain interacting with the real entertainment sector is pushing us to spread the word.

NMR

NMR is a native token of the Numerai project. A decentralized network platform for performing predictive analytics and MO. Such a development is designed to incentivize scientists, analysts, and other people working with data to share their ideas. The token itself helps to perform accurate predictions, creating individual models with real-world applications. The unique mechanics allow participants to place bets and receive rewards if their predictions are accurate.