The world of cryptocurrency is always changing quickly. New coins pop up all the time while others fade away. As an investor, it can be hard to know which digital currencies have real potential for the future. When picking crypto to buy for your portfolio, it's important to understand the fundamentals and use cases.
The most successful projects solve real problems and have practical applications beyond just being tools for trading or speculation. Here are some cryptocurrency picks for 2024 with solid foundations and use cases that could make them smart long-term investments.
Bitcoin (BTC)
It’s obvious, but Bitcoin still deserves a spot on the list of top crypto to invest in 2024. As the original and most well-known crypto, Bitcoin represents the strongest brand and network effect in the space.
While Bitcoin was originally started as a payment system, its main use case has evolved into a store of value and digital gold alternative. People now view Bitcoin as an inflation hedge and safe haven asset, similar to how investors use gold or other precious metals.
With a hard-capped supply of 21 million coins and revolutionary blockchain technology, Bitcoin remains the crypto with the most liquidity, security, and adoption around the world. Its first-mover advantage gives it staying power as the king of crypto.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market cap and the leading platform for decentralized applications (dApps) and smart contracts. The Ethereum network hosts most of the leading projects in areas like decentralized finance (DeFi), NFTs, gaming, and the metaverse.
Thanks to its immense developer community and first-mover status for dApps, Ethereum has cemented itself as a primary on-ramp to the world of Web3 applications. Its shift to a more energy-efficient proof-of-stake model has also made Ethereum more sustainable long-term.
Even as other smart contract platforms like Solana, Avalanche, and Cardano continue growing, Ethereum’s head start and network effects give it an edge for now. Ethereum could have a monumental 2024 as the backbone for the explosion of Web3 use cases.
Stellar (XLM)
Stellar is an open blockchain network designed to help facilitate cross-border payments and remittances in a faster, cheaper, and more transparent way than legacy financial systems. Its cryptocurrency XLM serves as a bridging tool between different currencies and assets.
As crypto becomes more mainstream globally, Stellar’s robust platform for powering payments and loans has huge potential. The crypto has already formed major partnerships with companies like IBM, OKCoin, and Tala to provide financial services to the underbanked around the world.
With its scalable network, low fees, and clear use case as an on/off-ramp for global liquidity, Stellar could surge in usage in regions with underdeveloped banking infrastructure. Ongoing development of its DeFi ecosystem could also drive XLM’s value higher.
Chainlink (LINK)
While not currently the top crypto by market cap, Chainlink stands out for playing a crucial role in securely integrating real-world data into blockchain networks. Its decentralized Oracle network connects smart contracts on blockchains like Ethereum to off-chain data feeds and web APIs.
This allows dApps to reliably access inputs like pricing data, sports results, weather information, and much more to power their applications and execute transactions. As the leading Oracle service, Chainlink provides a key utility across many major crypto projects requiring external connections.
As on-chain applications grow across DeFi, gaming, insurance, and more, the demand for Oracle services like Chainlink is expected to expand significantly. That steady growth outlook could make LINK an attractive crypto investment vehicle for 2024.
Basic Attention Token (BAT)
The Brave browser and its native BAT token present an interesting use case for privacy and reshaping digital advertising. Brave blocks ads and online trackers by default to protect user privacy, but it also rewards users with BAT tokens for optionally viewing privacy-respecting ads.
This incentive system around digital attention and compensation seems ahead of its time. As concerns grow over big tech’s misuse of personal data for profit, the ethos behind BAT and Brave could become more mainstream in 2024 and beyond.
BAT’s token model also has promising applications beyond just ads, such as supporting content creators and subscription services. If adopted more widely, BAT could upend how we transact value on the internet.
Filecoin (FIL)
Filecoin aims to create a decentralized storage network incentivized by its cryptocurrency. People can earn FIL tokens for providing storage space on their computers and devices. Users pay FIL to rent that unutilized storage safely encrypted on Filecoin’s network.
By tapping into the world’s unused storage capacity, Filecoin offers a cheaper, more distributed solution for storing data compared to centralized cloud storage services. This decentralized model is more resistant to censorship and outages.
Data storage needs are always growing across individuals, enterprises, and emerging technologies like Web3 applications. Filecoin provides a fundamentally differentiated and potentially disruptive product to help meet these needs. FIL could see strong tailwinds in 2024 and years to come.
Don’t Purchase Cryptocurrencies Blindly
While those are some of the more fundamentally appealing cryptocurrency picks for 2024, every investor’s situation is different. Do plenty of your own research before buying any coins. Understand the full scope of the project’s value proposition, competition, and risks.
Don’t purchase cryptocurrencies blindly just because someone else recommends them. Crypto markets are highly volatile, so you could lose money on any investment. Only invest money you can afford to lose and stick to your own strategy and risk tolerance levels.
Conclusion
Nevertheless, the cryptocurrencies covered offer interesting technology differentiation and use cases. They could represent smart additions to diversify your crypto portfolio if you believe in the long-term adoption and disruption potential within their domains.
