Buying cryptocurrencies is pretty easy. However, buying the right cryptocurrency without a time=tested strategy is very hard. So what are the best cryptocurrencies to buy or put on a watchlist?
What are the best cryptocurrencies to buy now or put on a watchlist? Bitcoin (BTC), Dogecoin (DOGE), Ethereum (ETH), Cardano (ADA), and Uniswap (UNI) are the top digital currencies to buy right now.
Since the price correction of late May and June, the crypto market has rebound quite strongly. It is an indicator that despite the factors that led to the correction, such as China’s crackdown on miners, investors still have a lot of confidence in the cryptocurrency market.
Regulations remain a concern though, especially the recent infrastructure bill in the U.S. There are fears that this law could complicate the operating environment for cryptocurrencies in the U.S, more so for DeFi-focused cryptocurrencies.
Nonetheless, major cryptocurrencies have shown significant strength despite these challenges. Increased adoption by institutional investors has played a major role in boosting the crypto rebound over the last month.
Best Cryptocurrencies To Buy: The Important Ingredients
There are over 6000 cryptocurrencies in the market today, and that number is going up by the day. Anyone who wants to make money in this market must learn to differentiate between strong cryptos, and low-quality ones that are just out to ride the waves.
One of the most important factors to consider when buying a cryptocurrency is the level of adoption. Adoption means that there is an underlying value to crypto besides speculation. The more adopted a cryptocurrency is, the higher the chances that it can grow in value long term.
The second factor to consider is the technical capabilities of a project. This encompasses everything from security, scalability, to tokenomics among other factors. In a market as crowded as crypto, technical capabilities are an important aspect to the success of a project.
Thirdly, is the community that is behind crypto. The best cryptocurrencies are those that have a strong community of both developers and investors. A strong community of developers means that the crypto can continuously improve its technical features to meet market needs.
On the other hand, a strong community of investors helps a lot with giving cryptocurrency visibility in the market. There are many cryptocurrencies that have gained significantly in value driven by the social media hype created by their communities.
After finding crypto that meets the above criteria, the next step is to look at the charts. The best time to buy is when a crypto is in a breakout after a period of consolidation. This is usually an indicator that buyers are taking over the market, after a period of indecision.
Don’t Forget The M When Buying Stock
The big M stands for the market trend. It is always best to invest in a crypto that is in a confirmed trend on the longer timeframe charts.
It is also important to make sure that the broader market is in a confirmed uptrend. Since the broader crypto market tends to follow Bitcoin, it is best to buy when Bitcoin is in a confirmed uptrend.
That said, it is important for investors to find a strategy and stick to it. Without the discipline to stick to a strategy, one can easily panic and sell during the various corrections that characterize the crypto market.
Now that the market has made a strong recovery from its lows in June, this is a good time to buy fundamentally strong cryptocurrencies. The cryptocurrencies featured below are some of the best candidates to buy now.
However, it is important to remember that things can change at any time. As such, investors should keep an eye on the market at all times.
Best Cryptocurrencies To Buy Or Watch
Here is a more detailed look into Bitcoin, Dogecoin, Ethereum, Cardano, and Uniswap. The common denominator among them is that they are all fundamentally strong.
1. Bitcoin (BTC)
Bitcoin is back above $50k, a level that is highly indicative of rising bullish momentum. That’s because hit the $50k price level after pushing through the 50-day moving average resistance at $49,550 and with high volumes.
At the moment, Bitcoin’s RSI reading is at 60, which is an indicator of rising bullish momentum. If it holds above $50k for the next couple of weeks, then there is a good chance that Bitcoin could retest its all-time highs within September.
Bitcoin has had quite an eventful 2021. It started the year strongly bullish and accelerated in Q1 of the year driven by strong adoption by institutional players.
However, this all changed in May due to a confluence of factors. The biggest ones were China’s crackdown on Bitcoin mining, and Elon Musk questioning Bitcoin’s environmental metrics.
Since then, it has made a strong rebound driven by more institutional adoption, and the declaration of Bitcoin as legal tender by El Salvador.
This legitimization of Bitcoin has played a huge role in its value appreciation and eliminated all the FUD that came with the Chinese crackdown on mining.
Going forward, there are a lot of factors that are strongly in Bitcoin’s favor. One of them is that mining is no longer concentrated in a single country. Today, Bitcoin mining is dispersed in many countries all across the globe.
This means no country is in a position to threaten Bitcoin by cracking down on mining the way China did. It’s a huge factor in driving up investor confidence in the Bitcoin network.
Bitcoin also has the element of scarcity on its side. Nowadays, Bitcoin is often referred to as digital gold, and for a reason. There are only 21 million that can ever exist once the last Bitcoin is mined.
While this figure in itself is pretty low, one needs to consider the fact that millions of Bitcoins are lost forever, through lost seed phrases. The process of bringing new Bitcoins into existence has been getting difficult over time too.
Way back in the early 2010s, all it took to mine Bitcoin was a laptop. Today, one needs a pool running machines that cost 10s of thousands of dollars apiece, to profitably mine Bitcoin.
At the same time, the block rewards per block have been shrinking over time. In the last Bitcoin halving of 2020, the block rewards shrunk from 12.5 to 6.25. What followed was a price rally from under $10k to $64k.
The next halving is not far off either and is scheduled for April 2024. This will further shrink the Bitcoin mining rewards to 3.125 BTC. Considering how fast the demand for Bitcoin is growing, especially amongst institutional investors, this is a factor that could see the value of Bitcoin easily hit hundreds of thousands of dollars by 2025.
A combination of the above factors makes Bitcoin a top cryptocurrency to buy or put on a watchlist now.
Read Also: Ways to Make Money With Bitcoin (BTC)
2. Dogecoin (DOGE)
The meme digital asset is one of the best cryptos to buy right now.
Dogecoin is back above $0.25 after hitting lows of $0.17 back in June. For the last few weeks, it has been trading steadily above the 25-day moving average at $0.26. It has bounced off this support level twice, an indicator that bears do not have the momentum to drive it lower.
Going forward, there are a number of factors that could play a role in driving up the value of this crypto.
In the very short term, the key factor that could see the Dogecoin rally is the Doge-1 mission in early 2022. This mission by SpaceX is fully funded in Dogecoin, and is even named after Dogecoin. The mission will have a number of positive implications for Dogecoin going into the future.
One of the implications that the mission will likely bring is the hype factor. The media attention that the event will attract will play a role in creating FOMO around this crypto.
This is the one factor that could see its value rally to its all-time highs, or even higher than $1 within the next six months.
Long term, there are several other factors that could see the value of Dogecoin maintain a price higher than $1.
The biggest one is adoption. Since Elon Musk started pumping up Dogecoin back in 2020, the number of companies using it for payments has shot up. Up to 15 well-known companies, including the Dallas Mavericks, now accept Dogecoin for payments.
Once the Doge-1 mission is actualized, the hype it will create around Dogecoin will see even more companies start accepting this crypto for payments. This is a factor that could play into Dogecoin’s adoption going into the future. It makes it a high potential to keep an eye on going forward.
Another factor playing in Dogecoin’s favour is the fact that the developer team is back in action after many years of being MIA. A while back, they announced that they were working on a series of upgrades that would make Dogecoin more scalable, and more affordable for everyday transactions.
This will have the effect of making Dogecoin one of the most practical cryptocurrencies to use for everyday payments. With an improvement in the functionality of its protocol, Dogecoin would have an edge over a lot of other payment cryptocurrencies in the market today.
That’s because, besides being a pretty good payments method, Dogecoin has more visibility than a lot of other cryptocurrencies angling for the same space. It has Elon Musk and other celebrities doing its bidding.
But even without them, the Dogecoin community is one of the strongest communities in crypto today. It is on the strength of this community that the likes of Elon Musk and other celebrities became interested in this project.
This is a factor that could see its value rally significantly going into the future.
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3. Ethereum (ETH)
If you're looking for the top crypto to buy then Ethereum is worth considering.
Ethereum has made a very strong rebound since it hit lows of $1170 back in June. It is now less than $500 off its all-time highs and it’s gaining.
Key technical indicators point to increasing bullish momentum for Ethereum. For instance, the 50-day moving average has been outpacing the 200-day moving average over the past month.
This is an indicator that the current price is rising exponentially faster than the historical average. Other key indicators paint a similar bullish picture too. For instance, Ethereum has an RSI reading of 67 and rising. This is a pointer to fast-rising bullish momentum.
With key technical indicators strongly bullish for Ethereum, an increase in buying volumes could easily see it blow past its all-time highs of $4300.
The broader market, which is a key indicator of the overall market direction is pretty bullish too. The entire crypto market is now trading at over $2.2 trillion market capitalization and is gaining fast.
Bitcoin is now trading at over $50k and gaining. With its current price trajectory, it could retest, and possibly surpass its all-time highs in the foreseeable future. This would have the impact of adding momentum to all cryptos. This could easily Ethereum make new highs within 2021.
Besides the technical indicators painting a pretty bullish picture for Ethereum, its core fundamentals are pretty strong too, and they are getting better.
The biggest fundamental boost for Ethereum is that is in the middle of a huge transition to become a better platform.
On August 5th, one aspect to this transition dubbed the London fork was done and saw the price rally significantly. The aim of this upgrade was to make gas prices more predictable, and in the process make Ethereum more competitive.
At the same time, something very interesting was introduced to the Ethereum blockchain, and that’s the coin burn. The effect of this is that it will affect the long-term supply dynamics of the Ethereum blockchain. It’s a factor that could see Ethereum trade in the 10s of thousands of dollars going into the future.
The best part is that this coin burn feature is just a small portion of the Ethereum upgrade. The move to Ethereum 2.0 will make Ethereum even more scalable than ever before. The scalability aspect to it is through Ethereum Optimism and other layer-2 solutions.
Ethereum, as is, has become the largest platform blockchain in the world and carries more than 90% of the DeFi market.
Now that it is set to become even better, it stands a good chance to lock in even a bigger portion of this market going into the future. This will play a huge role to its value appreciation going into the future.
Another hugely important aspect of this upgrade is that it will improve Ethereum’s perception amongst regulators.
Lately, there has been a lot of criticism towards Proof-of-Work blockchains for their impact on the environment. This criticism has a valid basis to it considering that a network like Bitcoin now consumes more energy than entire countries.
This is a big deal, considering that a huge portion of these mining operations do not use clean energy.
Ethereum is moving away from Proof-of-Work, and the environmental issues that surround Proof-of-Work blockchains will no longer apply to it. This may explain why Ethereum is attracting lots of institutional interest at the moment.
They know that once the transition is complete, they will be able to invest in Ethereum without drawing criticism for investing in ventures that are killing the planet. Considering that environmental consciousness is on the rise globally, this is a factor that could see the demand for Ethereum rise significantly going into the future.
4. Cardano (ADA)
Cardano has been one of the best crypto performers in 2021 and the ADA coin is still worth buying right now. It is up by over 2000%, and still gaining. Since surpassing its previous all-time highs in late August, it has gone on to make new ones above $3.
From a look at its technical indicators, Cardano still has room for more gains in the short to medium term.
Cardano’s 25-day moving average has been outpacing the 99-day moving average by a huge margin. This is an indicator the current price is rising fast and is supported by Cardano’s fast-rising buying volumes.
It also has an RSI reading of 81, an indicator that buying momentum is strongly on the rise for Cardano.
These technical indicators are supported by the big news that Cardano has coming up on the 12th of September.
On that date, Cardano will enable smart contracts on its blockchain. This upgrade is behind Cardano’s rally that has seen it make new highs, and could see it test new highs above $3 within September.
Besides the hype around the upgrade coming up on September 12th, the broader market trend favours a potential for Cardano rally way past its $3 highs.
Bitcoin, which is quite a reliable of the broader market direction is gaining bullish momentum over the past month. It is now trading at over $50k, having pushed through two major resistance levels at $44k, and at $49,500.
If it surpasses its all-time highs of $64k within 2021, then cryptos like Cardano that already have strong bullish momentum could rally even more within the year.
Other than the technical indicators being strongly bullish for Cardano, the fundamentals are pretty good too.
The Alonzo upgrade as the introduction of smart contracts on Cardano is called will have lots of positive implications for Cardano. One of them is that it will put Cardano in a position where it can compete effectively with Ethereum in DeFi.
There are a lot of factors that will incentive DeFi developers to choose Cardano. One of them is its scalability. Cardano was built to scale right from the get-go.
Through its Ouroboros Proof-of-Stake algorithm, Cardano has the capacity to handle more than 200 transactions per second on-chain. That’s huge when compared to Ethereum, which can handle less than twenty.
Off-chain, through layer two solutions like hydra, Cardano is in a position to handle up to 1 million transactions per second. For anyone who wants to build a DeFi project that has heavy usage, Cardano comes across as the perfect project for the job.
As this demand grows, so will the value of ADA since it’s the crypto that one needs for transactions on the Cardano blockchain.
Cardano staking has also become a huge source of demand for ADA. Since ADA offers both a good opportunity for value appreciation and passive income, its demand will only rise over time.
A combination of these factors makes Cardano a top project to buy now, or put in a watchlist.
5. Uniswap (UNI)
Another crypto to buy and watch is Uniswap. It has made a pretty decent recovery from its lows in June, but is yet to retest its all-time highs.
At the moment, it is consolidating above the 25-day moving average at $26.95. However, there is every indication that bullish momentum is on the rise. This is evident in the fact that the 7-day moving average has been rallying much faster than the longer-term averages. It is now close to cutting the 25-day moving average from below.
If this happens, then Uniswap could rally in the near future, with $40 as the next key target.
Its RSI has a reading of 74 too, which is an indicator that bullish momentum is pretty strong for this crypto.
The broader market is gaining upside momentum too, a factor that could play into Uniswap’s favour in the short term. If Bitcoin manages to test and surpass its all-time highs, then Uniswap trading at prices above $40 is possible in the short term.
Long term, Uniswap has a lot of factors going for it. For instance, it is the world’s largest decentralized exchange by volume. This means there is a strong underlying demand for Uniswap, over and above speculation.
Since adoption is the foolproof path to crypto value appreciation in the long run, Uniswap is clearly among an elite group of cryptos whose future growth potential is very high.
There is also the fact that the market for decentralized exchanges is on an exponential growth path. That’s largely due to the security risks that come with centralized exchanges.
With the crypto market ever-expanding, hackers will only get more incentivized to attack centralized exchanges. This means there is a lot of room for Uniswap to grow, and this will play into its value dynamics long term.
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