Best Crypto to Invest In

Despite being at a very nascent stage, the crypto market has a much higher trading velocity as compared to stock markets.

The crypto industry size crossed the $1 trillion mark for the first time in Jan 2021, hit a maximum of nearly $3 trillion in November and slumped to under $1 trillion by June 2022.

With such high volatility, most investors are confused as to which is the best crypto to invest in.

In this guide, we'll show you the 5 best cryptos to invest in.

#1. Bitcoin

Created in 2009, Bitcoin (BTC) is the original cryptocurrency and the most popular crypto in India. Experts even call Bitcoin the ‘gold standard' of cryptocurrencies.

Bitcoin makes up over 40% of the total crypto market capitalisation across the globe.

BTC runs on a blockchain or a ledger logging transactions distributed across a network of thousands of computers which makes it highly secure.

Bitcoins have a finite supply of 21 million which means there will never ever be any more than 21 million bitcoins. For investors this limited supply is a big contributor to Bitcoin's value.

#2. Ethereum

Ether is the second most valuable cryptocurrency in the world. Bitcoin and Ether are often referred to as gold and silver of the crypto world.

Ethereum tokens are simply digital assets that are being built on top of the Ethereum blockchain.

The Ethereum blockchain serves as a basis for innovation and development in the cryptocurrency space - from digital art sales using NFTs to decentralized peer-to-peer lending.

#3. Tether

Tether is an asset-backed cryptocurrency, stable coin. All Tether tokens are pegged at 1-to-1 with a matching fiat currency and are backed 100% by Tether's reserves.

It is often used as an intermediate currency for a trader, or even just to hold profits until you decide what you'd like to invest in next.

Tether's value is supposed to be more consistent than other cryptocurrencies, and it's preferred by investors who are wary of the extreme volatility of other coins.

#4. Shiba Inu

Shiba Inu is an Ethereum-based altcoin or meme coin that features the Japanese dog breed Shiba Inu as its mascot.

Shiba Inu is a token, not a coin as it doesn't have its own blockchain.

Shiba Inu was launched as a direct competitor of Dogecoin as a joke. Both Shiba Inu and Dogecoin come under the category of meme coin.

However, Shiba Inu ecosystem actually supports a number of useful utilities, including NFTs and ShibaSwap which aims is to provide a secure environment for cryptocurrency trading while remaining decentralized.

#5. Binance Coin

Binance Coin is the cryptocurrency issued by Binance Exchange, the largest cryptocurrency exchange in the world.

BNB was initially based on the Ethereum network but is now the native currency of Binance's own blockchain, the Binance chain.

Like Bitcoin, Binance has a limited supply of 200 million tokens and every quarter Binance used 20% of its profits to permanently burn or repurchase coins held in its treasury.

Initially created as a utility token for discounted trading fees in 2017, it is now also used to pay transaction fees on the Binance Chain and travel bookings among others.

A word of caution

The above list of cryptos are not recommendations by any stretch.

We at Equitymaster don't get cryptos to be honest.

It's something that has caught our imagination, but we just can't figure out a way to value it, fundamentally speaking.

So our 'fundamental' take on cryptos is simple. It's in line with the approach anyone should have when dabbling in a space they don't understand.

Invest only what you can afford to lose. Nothing more.

Before you take the next step and invest your hard earned money in cryptos, we recommend you take a look at Nithin Eapen's CryptoMaster.

Happy Crypto Investing!