Buying crypto as a 2024 resolution? Find some of the best cryptocurrencies on Kraken.
Over the past several months, the crypto world has experienced lots of buzz, with several important catalysts coming soon. And a handful of potentially promising projects. Let’s take a look at some of the top cryptocurrencies for February 2024.
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Best Crypto to Buy Now
Since the crypto landscape is constantly changing, the list of best cryptocurrencies shifts. However, here are some of the best tokens for February 2024.
1. Bitcoin (BTC)
Price: ~$49,000
Market cap: ~$950 billion
Year-over-year return: ~120%
Bitcoin was the first cryptocurrency and has risen to prominence over the past decade. More recently, the approval of spot Bitcoin ETFs has brought in new investors and sent the token even higher. One catalyst to watch for in 2024 is the Bitcoin halving.
2. Ethereum (ETH)
Price: ~$2,600
Market cap: ~$300 billion
Year-over-year return: ~65%
Ethereum is a blockchain that focuses on decentralization and developing new projects. Some key events to watch for in 2024 are the planned upgrades to the blockchain, as well as the potential for the approval of spot Ethereum ETFs.
3. Solana (SOL)
Price: ~$110
Market cap: ~$50 billion
Year-over-year return: ~430%
Solana has risen to prominence over the past several years because of its emphasis on speed and low fees. The token took a hit in late 2022 from the collapse of FTX. However, it has had a strong rebound over the past year, which could translate to 2024.
4. Ripple (XRP)
Price: ~$0.50
Market cap: ~$30 billion
Year-over-year return: ~35%
Ripple is a platform designed to bring blockchain technology directly to the banking sphere. Despite lawsuits and a rough start in 2024, the community remains extremely bullish and believes that a reversal is in the near future.
5. Optimism (OP)
Price: $3.50
Market cap: ~$3.5 billion
Year-over-year return: ~70%
Optimism is a layer-2 blockchain built on top of Ethereum. Optimism uses optimistic rollups to scale Ethereum, offering users the ability to use DeFi for a fraction of the cost of Ethereum’s mainnet. Coinbase’s Layer 2 Base uses the Optimism stack, creating significant hype for OP in recent months.
6. Celestia (TIA)
Price: ~$20
Market cap: ~$3.2 billion
Year-over-year return: ~850%
Though it is a relatively new project, Celestia has quickly risen in the crypto ranks. The project is a modular blockchain, which allows anyone to create their own projects much more seamlessly, as well as new opportunities for more efficient testing. The token has performed extremely well since launching in late 2023.
7. Dogecoin (DOGE)
Price: ~$0.08
Market cap: ~$11 billion
Year-over-year return: ~-0.5%
During the last bull market, Dogecoin was all the rage. However, it has struggled a bit since then. Despite this, the rise of several new meme coins could bring a revitalized interest in DOGE, potentially sending the token higher.
8. Binance Coin (BNB)
Price: ~$320
Market cap: ~$50 billion
Year-over-year return: ~5%
In late 2023, former Binance CEO Changpeng Zhao (CZ) pleaded guilty to money laundering charges. At the time, many thought that Binance could potentially go under. However, it has shown resiliency and managed to continue operations. The token has also recovered strongly after the arrest of CZ.
9. Avalanche (AVAX)
Price: ~$41
Market cap: ~$15 billion
Year-over-year return: ~130%
Avalanche is a blockchain focusing on high speeds and low cost. Though the token did not experience much volatility for most of 2023, it has risen sharply during the beginning months of 2024. It has a strong investor community and is one of the strongest altcoins on the market.
10. Tron (TRX)
Price: ~$0.13
Market cap: ~$11 billion
Year-over-year return: ~100%
Tron is a blockchain hoping to connect content creators and their followers in a much more equitable way. It hopes to eliminate the middleman, giving creators full rights to digital content and earn more from royalties.
What is Cryptocurrency and How Does It Work?
Cryptocurrency is a token-based way of transacting online. Tokens are stored on an unchangeable ledger that can be viewed by anyone. The data is also stored on a large network of computers, which allows for much easier scalability.
Most cryptocurrencies are processed by others on the blockchain. Other users can verify transactions in exchange for rewards.
Since the basic framework for technology has been developed by previous projects such as Bitcoin and Ethereum, it is somewhat easy for new developers to create a blockchain of their own. Additionally, projects like Ethereum allow users to create their own tokens with little effort. Because of this, there are tens of thousands of cryptocurrencies available to invest in.
How to Invest in Cryptocurrency
To invest in crypto, you first have to make an account on a crypto trading platform. Some of the top firms are Coinbase, Kraken, Webull and eToro. These sites are well-known for their low fees, security and ease of use.
To get started, create an account and verify it using an email and some form of identification. From there, you can fund your account by linking a bank. With a linked bank account, you can begin trading a variety of cryptocurrencies.
Crypto trading is similar to stock trading. However, most sites offer a separate crypto trading platform or only offer cryptocurrency.
How to Report Crypto on Taxes
As of right now, the IRS treats cryptocurrency as a form of property. Because of this, you are required to pay capital gains tax on sales of crypto. Crypto exchanges send Form 1099s, which report capital gains and losses for the year. You can use this form to report your taxes on crypto transactions.
What Are Cryptocurrency Exchange-Traded Funds (ETFs)?
A recent phenomenon has been that of spot ETFs for crypto. An ETF is a fund that pools investors’ money and uses it to buy an underlying asset. In this case, the underlying asset is crypto. The fund then takes the assets and packages them into shares which are distributed to the investors.
Top Cryptocurrencies: Lots of Options
Crypto can seem overwhelming for beginners. Learning as much as you can about the basics of crypto and some of the top tokens will help you be a better crypto investor. Do your own research to see what tokens may suit your specific investment needs.
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Frequently Asked Questions
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While it is hard to tell, cryptocurrencies with potential catalysts may be more likely to boom if the events play out in their favor.
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Bitcoin is the highest-rated cryptocurrency because of its longevity and size.
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While all cryptos are potentially susceptible to hacking, larger projects are generally considered to be safer.
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