Key points
- Bitcoin is the largest crypto by market cap, and its supply is coded to lag.
- Ethereum is the most adopted platform blockchain in the market, and a recent hard fork made it deflationary
- Axie Infinity is a pioneer in NFT gaming and allows staking, which influences token supply and demand.
- Chainlink is the number one oracle blockchain, and its tokens are in high demand
- Binance coin is heavily used in the Binance Smart Chain, and the coin burn is set to be fast-tracked.
In the financial world, there are moves you can make and look like a genius if things go your way. For instance, anyone who shorts the stock markets in early 2008 made a fortune when the markets crashed. Similarly, anyone who invested in crypto in the early 2010s looks like a genius today.
The best part is that the opportunity to make a life-changing investment is always there. You just need to know where to look. For instance, cryptos that have good tokenomics, and a strong use case have a lot of potential for growth going into the future.
For instance, buying these 5 cryptocurrencies could be the smartest investing move you ever make:
Bitcoin
Buying Bitcoin (BTC) was one of the best investments that anyone could have made 10-years ago. Going forward, it is still one of the best investments that one can make. This has a lot to do with its scarcity.
Bitcoin is not called digital gold without reason. Its supply is capped at 21 million, and the new coins coming into the market do so at a very slow rate. This is all thanks to the Bitcoin block halving that takes place every four years.
This, against a backdrop of rising demand, has been the key driver to Bitcoin’s value growth in the past. The block halving was responsible for the massive rallies in 2016/2017 and 2020/21.
Going into the future, this will continue to be a leading factor in the value appreciation of Bitcoin. For context, the 2024 Bitcoin block halving is set to cut the rewards per block to just 3.125 per block. That’s a huge drop considering that the reward per block was 50 BTC a few years back.
It is also noteworthy that unlike in the past when Bitcoin was largely considered a currency of the underworld, it is now a mainstream investment. Bitcoin is now used as legal tender in a country, and a lot of big institutions now have it in their portfolios.
The institutional adoption is so huge that there are lots of institutional-grade investment vehicles that are tailor-made for Bitcoin. With the economic uncertainties that have come in the post-pandemic era, there are many more companies looking to diversify their holdings, and Bitcoin will most likely take a huge portion of this money.
This is due to its network effect. It is the largest crypto by market cap, and it’s pretty much one of the most decentralized. This is a confidence boost for institutional players, who still view the crypto market as a risky asset class.
A combination of extremely low supply and acceptance by institutional players, makes Bitcoin highly undervalued at current prices. Since its demand as an investment is growing, after the halving of 2024, it could easily test prices north of $500k.
This means anyone buying it now is getting in at extremely low prices, despite trading at over $50k a coin. It is without a doubt one of the smartest moves you could ever make.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ethereum
Ethereum (ETH) is one of the best performing cryptocurrencies ever. On top of its impressive price performance, Ethereum has emerged as one of the most sophisticated cryptos out there, and also one of the most adopted.
For context, since the development of the ERC-20 standard, the majority of all new tokens coming into the market are now Ethereum-based.
This makes it one of the highest utility cryptocurrencies in the market today. Its usage in developing new tokens has put it in pole position for adoption in the fast-expanding DeFi space.
A majority of new DeFi projects coming into the market are Ethereum-based. There is a real possibility that its dominance in this market will keep growing over time.
That’s due to its security and decentralization. Ethereum gets a lot of bad rap for its scalability issues. What is rarely ever mentioned is that its scalability issues are because it is highly decentralized, which also makes it very secure.
This explains why a lot of Ethereum killers rarely last in the market. Most of them scale efficiently because they have centralized consensus mechanisms, and it never takes long before their weaknesses begin to show.
For most DeFi projects, especially those that deal with sensitive data, Ethereum offers huge protection from such risks. This pretty much guarantees its growth as the DeFi market expands.
Even more interesting is that Ethereum is working on getting rid of the scalability problem that competitors have always used to bash it. This is being done through Ethereum 2.0.
Ethereum 2.0 entails transitioning Ethereum from a Proof-of-Work blockchain to Proof-of-Stake. Already staking is live on Ethereum, and a lot of other improvements related to Eth2.0 are complete.
For instance, Ethereum implemented the London fork in August, a move that stabilized gas prices. High gas prices have always been a source of concern for investors and the fact that this is now taken care of is a major attractor to Ethereum.
On top of that, the London fork essentially made Ethereum deflationary, which is a big deal for anyone investing in Ethereum long term. With the Ethereum fork, fees generated during transactions are now burned instead of being distributed to miners. This means as demand for ETH grows, so will the price, since the amount of ETH in supply is going down.
For one of the most widely used cryptocurrencies today, introducing a deflationary feature makes it highly undervalued at current prices.
Then there is the fact that Ethereum is very attractive to institutional investors. Aside from Bitcoin, no other cryptocurrency can match Ethereum in terms of institutional adoption. There is everything from ETFs to other Ethereum derivatives that are geared towards institutional money.
Ethereum is also becoming more environmentally friendly, with the shift from POW to PoS. In an increasingly environmentally conscious world, this could be a pivotal driver to attracting institutional money.
All this makes it Ethereum high prospect crypto going into the future. A combination of its strong fundamentals and the fact that crypto as an asset class is growing makes Ethereum one of the best investments ever.
The possibility of Ethereum trading in the 10s of thousands of dollars per coin is pretty high in the next 5 to 10 years. For someone who buys now, that would be like hitting the jackpot.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Axie Infinity
This is a crypto newcomer, and there are lots of people who don’t understand it much. However, a closer look at Axie Infinity (AXS) reveals a gem, one that could end up being one of the smartest crypto investments you ever make.
One of the key factors behind its potential is its first-mover advantage in its core market. Axie Infinity is the first and most successful NFT gaming platform in the crypto market today. Others that are coming up are only playing catch up.
To understand how big of a deal first-mover advantage is, one needs to look at some of the most successful coins in the market today. Bitcoin is what it is today because it was the first ever successful cryptocurrency ever created. Many had been created before it but never gained traction outside of Reddit communities.
Similarly, Ethereum is what it is today because it was the first successful platform blockchain ever created. The same can be said of Chainlink, which was the first, and now most dominant oracle crypto in the market today.
Going by this pattern, Axie Infinity has what it takes to grow exponentially, and test prices multiple times what it is trading at today.
Besides its first-mover advantage, Axie Infinity has a lot of factors that could propel it to greater heights in the long run.
For starters, it is targeted at gaming, one of the fastest-growing markets out there. By creating a monetary reward for gaming, Axie Infinity could easily corner the global gaming market. That’s because, besides the fun aspect of it, gamers now have the incentive of winning valuable tokens out of it.
Its potential in the gaming industry is evident in the explosion of high-value NFTs on this blockchain. At the moment, Axie’s marketplace has one of the most expensive collections of NFTs in the world.
Axie also comes with the benefit of earning a passive income through staking. Through staking, one can earn AXS and SLP tokens. This is likely to keep drawing in investors to these tokens and drive up demand over time.
Axie Infinity’s market advantages have also seen it draw in strategic venture capital investments. Recently, Sky Mavis, the company behind Axie Infinity, raised $152 million, money that will be used to develop the play-to-earn game further.
This all points to crypto that has a lot of potential going into the future. Over time, a lot more people will learn of how big of a deal this crypto is. For those who get in now, this could be the smartest investing move ever.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Chainlink
Chainlink (LINK) is easily one of the most fundamentally strong cryptocurrencies in the market today. While it has underperformed in recent months, someone who buys with a long-term view of the market could be holding a gem.
For context, Chainlink is the most dominant oracle blockchain in the market today. It has over 65% of this market, and its adoption is much higher than all the other oracle blockchains combined.
This dominance comes with its set of advantages that will propel Chainlink forward for many years to come. For instance, its dominance means that projects looking for decentralized data providers will gravitate towards Chainlink.
Recently, Solana one of the fastest growing platform blockchains in the market started using Chainlink for data. It is an indicator of the direction that things are likely to take for this blockchain going into the future.
With adoption growing, LINK comes across as a pretty good investment. That’s because it is the crypto that one needs to do anything on the Chainlink ecosystem.
LINK tokens could easily be trading upwards of $100 or even much more in a few years. For those who invest now, this could easily be one of the best investments ever.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Binance Coin
Anyone who bought a sizeable amount of Binance coin (BNB) back in 2017 is wealthy now. However, the opportunity is not yet lost. Buying BNB now could be the smartest investment ever.
This has a lot to do with BNB’s tokenomics. Binance coin is deflationary crypto, and its supply has been going down since its inception. The best part is that its supply is set to drop even more drastically over time.
While Binance aimed to burn BNB over two decades, the crypto exchange recently announced that it would accelerate this burn over 5 to 8 years. This means over the next decade, the Binance coin is going to experience a huge supply shock.
If its past price action is anything to go by, then this crypto could easily test prices in the 1000s of dollars in a very short time.
However, it is not just the coin burn that makes the Binance coin extremely valuable. There is also the fact that it is one of the highest utility tokens in the market today. Binance coin is used for everything from paying fees on the Binance exchange to transactions on the Binance Smart Chain.
A combination of a declining supply and growing demand makes Binance coin a jackpot for investors who get in at current prices.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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