3 Of The Best Cryptocurrencies To Buy In January

Last Updated December 28th 2021
5 Min Read

The crypto market is on the rise after more than two months in the red. No matter where one looks in this market, everything seems to be on an uptrend.

The institutional buying of crypto, coupled with multinational corporations like Amazon expressing an interest in crypto for payments has triggered the bounce back.

When searching for the best crypto to buy, two key things to look for are adoption and coin supply. Cryptos with strong adoption metrics and a relatively low supply have performed well over time.

Best 3 Cryptocurrencies To Buy In January

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Adoption by institutional money and even countries

For instance, Bitcoin has been gaining in adoption for a while now.

However, it is only in 2021 that institutional money has shown a massive interest in Bitcoin.

Through platforms like the Grayscale Bitcoin Trust, major institutions have taken up Bitcoin in high numbers. Others like Microstrategy have been buying billions of dollars worth of Bitcoin directly.

The biggest aspect of Bitcoin adoption this year was the move by El Salvador to adopt it as legal tender.

This is a move that has significantly uplifted the profile of Bitcoin and places it in a good position for even more adoption going forward. Its price action at the moment is pointing to growing confidence in this crypto.

However, the biggest bullish signal for Bitcoin at the moment is Amazon. The tech giant recently announced that it was looking to integrate cryptocurrencies into its systems. Bitcoin is among the cryptocurrencies that Amazon has indicated it would be integrating.

It is a move set to grow Bitcoin’s profile and could see its value keep growing going forward.

All this increased demand is coming against an ever declining supply of Bitcoin, creating strong upside pressure in the near term.

Bitcoin’s price action is also pointing to growth in the short term. Despite lots of FUD targeting it, especially after the China crypto mining, Bitcoin held strong at $60k.

It has been on a rebound for weeks now and recently pushed through key resistance at $51k.

This is an indicator that buyers are fully in control. With all the positive news flying around such as those related to Amazon, Bitcoin can test prices above $70k in the short term.

This makes Bitcoin one of the best cryptocurrencies to buy in January and hold.

Check Out: 15 Reasons Why You Should Invest in Bitcoin Today


Crypto that is in the process of improving efficiency

While Bitcoin is having a good run now, Ethereum is in an even better position. 

In October 2021, it has been one of the best performers and is currently up by over 40%.

Ethereum operates in the fast-growing smart contracts market and is currently the number one dApps platform in the crypto ecosystem.

However, it has faced the challenge of scalability for many years now. This is the challenge that it is looking to solve with the shift to Ethereum 2.0.

The move started in December 2020, but it is this month that one of its major upgrades took place.

That move was the London Fork, which happened on the 5th of August 2021 and has created lots of excitement in Ethereum.

That’s because it will lower Ethereum gas fees, making the blockchain more efficient for dApps developers and traders.

However, it is not just the improved efficiency that is making Ethereum one of the most-watched cryptocurrencies at the moment.

There is also the fact that this fork has created an element of scarcity in Ethereum. As currently structured, Ethereum is already scarce because of its mining difficulty.

The London fork has introduced the element of a coin burn. A substantial amount of Ether was burned during the fork, and more will be burned with each transaction.

This is likely to have an impact on the value of Ethereum going forward as it creates scarcity for an asset that is already highly in demand.

This is a factor that could set Ethereum on an upward trajectory not just now, but for many years to come.  

Ethereum’s price action has already seen it push through the resistance at $3900.

This is an indicator of the rising bullish sentiment in Ethereum at the moment. If this continues in the next couple of days, Ethereum could test prices above $4000 in the coming days.

By the end of January, Ethereum could easily be trading at upwards of $5000. ETH is one of the best cryptocurrencies to buy this January.

Read Also: Will Ethereum Be Worth More Than Bitcoin By 2030?

Binance coin

A high-risk, high return play

Cryptocurrencies are inherently risky, but due to individual crypto-related factors, some present a higher risk. One crypto that is fundamentally strong but is a high-risk play at the moment is Binance coin.

Binance coin is one of the best performers in crypto history. It went from under a dollar less than 5-years ago to a high of $690 in May 2021.

Binance coin’s value has primarily been driven by the exemplary performance of the Binance exchange. This is quite expected since it is the crypto that powers the Binance exchange.

Its quarterly coin burn feature also boosts Binance coin. This has seen BNB’s supply drop over time, even as its demand keeps rising.

However, there is an increasing regulatory risk with regard to the Binance exchange. Over the past couple of months, Binance has faced regulatory scrutiny in most major economies where it has operations.

If regulators decide to go after the exchange, it could create panic selling of BNB and hurt its value in the short term.

The good news is that nothing of the sort has happened so far. Regulators have only been giving warnings to investors about using the Binance exchange.

Binance coin has been pretty stable all through too, and largely trading in the direction of the broader market. That’s where the good news is for investors.

The market is currently on an upward trajectory, which means Binance coin is likely to keep gaining all through January.

On top of that, if the regulatory issues surrounding Binance coin cool off, then it stands to outperform most cryptos by a huge margin.

That’s due to the coin burn feature that has driven its value for years now.  While the risk is a little higher, Binance coin is one of the best crypto coin to buy in January.

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