Skip to content

10 Best Cryptocurrencies To Buy In May 2024 – Forbes Advisor INDIA

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies to invest in based on their market capitalization or the total value of all the coins currently in circulation.

Mudrex is Indian Govt. recognized platform with 100% insured deposits stored in encrypted wallets

Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more

A cryptocurrency is a digital asset based on blockchain technology that can circulate without the centralized authority of a bank or government. To date, there are more than two million cryptocurrency projects in the market, representing a $1.76 trillion crypto market.

Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.

Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy one bitcoin for about $500. As of May. 7, 2024, a single bitcoin’s price was around $63,540. That’s a growth of 12,608%.

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).

Ethereum has also experienced tremendous growth. From April 2016 to the end of May 2024, its price went from about $11 to around $3,072, increasing 27,829%.

Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins.

Binance Coin (BNB) is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

BNB’s price in 2017 was just $0.10. By late May 2024, its price had risen to around $592, a gain of 591,883%.

Mudrex is Indian Govt. recognized platform with 100% insured deposits stored in encrypted wallets

Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more

Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.

When it launched in 2020, SOL’s price started at $0.77. By late May 2024, its price was around $154.97, a gain of 20,026%.

Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.

Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was $0.006. As of May. 7, 2024, its price reached $0.54, equal to a rise of 8,835%.

Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.

Dogecoin’s price in 2017 was $0.0002. By May 2024, its price was at $0.16, up 78,273%.

Mudrex is Indian Govt. recognized platform with 100% insured deposits stored in encrypted wallets

Listed On Deloitte Fast 50 index, 2022 Best Global FX Broker – ForexExpo Dubai October 2022 & more

Originally developed as a layer-1 blockchain for Telegram’s encrypted messaging platform, Toncoin was soon abandoned before being taken over by the TON foundation. The project name was even changed to “The Open Network” from its original name “Telegram Open Network,” both of which are referred to by their acronym: TON.

Toncoin—first known as Gram—is the native token for TON. It is an application that allows users to buy, send and store funds on TON’s incredibly fast, environmentally friendly network.

Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification in platforms like bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which ADA, its native coin, powers.

Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADA’s price was $0.02. As of May. 7, 2024, its price was at $0.45. This is an increase of 2,154%.

*Market caps and pricing sourced from coinmarketcap.com, current as of 8:31 a.m. UTC on May. 7, 2024.

Cryptocurrency is a form of currency that exists solely in digital form. Cryptocurrency can be used to pay for purchases online without going through an intermediary, such as a bank, or it can be held as an investment.

Cryptocurrencies are various forms of digital money that are usually based on blockchain technology. Blockchain technology allows most cryptocurrencies to exist as “trustless” forms of transactions. This means there is no centralized authority overseeing the transactions on a cryptocurrency’s blockchain.

Cryptocurrency is an emerging area with more than 9,000 crypto projects in existence as of March 2024.

While some crypto function as currencies, others are used to develop infrastructure. For instance, in the case of Ethereum or Solana, developers are building other cryptos on top of these platform currencies, and that creates even more possibilities (and cryptos).

When choosing the best cryptocurrency to invest in, it is important to consider your individual goals, investing timeline and risk profile, just as you would with any investment. Additionally, you should do your due diligence to make sure that any crypto project you are interested in is legitimate and secure.

In general, investors should consider the following when evaluating a crypto:

“When exploring cryptocurrency investments, first consider the exchanges where the token is listed. Tokens featured on major exchanges generally offer better liquidity, attracting larger investors and reaching a broader audience, which in turn increases the potential buyer base.” – Maksym Repa, analyst at Symbolic Capital

You can buy cryptocurrencies through crypto exchanges, such as Coinbase, Kraken or Gemini. In addition, some brokerages, such as WeBull and Robinhood, also allow consumers to buy cryptocurrencies.

If you buy and sell coins, it’s important to pay attention to cryptocurrency tax rules.

Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means if you sell cryptocurrency at a profit, you’ll have to pay capital gains taxes. This is the case even if you use your crypto to pay for a purchase. If you receive a greater value for it than you paid, you’ll owe taxes on the difference.

While you can invest in cryptocurrencies, they differ a great deal from traditional investments, like stocks. When you buy stock, you are buying a share of ownership of a company, which means you’re entitled to do things like vote on the direction of the company. If that company goes bankrupt, you also may receive some compensation once its creditors have been paid from its liquidated assets.

Buying cryptocurrency doesn’t grant you ownership over anything except the token itself; it’s more like exchanging one form of currency for another. If the crypto loses its value, you won’t receive anything after the fact.

Trading hours: Stocks are only traded during stock exchange hours. Cryptocurrency markets never close, so you can trade 24 hours a day, seven days a week.

Regulation: Stocks are regulated financial products, meaning a governing body verifies their credentials and their finances are matters of public record. By contrast, cryptocurrencies are not regulated investment vehicles, so you may not be aware of the inner dynamics of your crypto or the developers working on it.

Volatility: Both stocks and cryptocurrency involve risk; the money you invest can lose value. However, stocks are directly linked to companies and generally rise and fall based on those companies’ performance. Cryptocurrency prices are more speculative—no one is quite sure of their value yet. That makes them much more volatile and affected by something as small as a celebrity’s tweet.

Given the thousands of cryptocurrencies in existence and the high volatility associated with most of them, it’s understandable you might want to take a diversified approach to investing in crypto to minimize the risk that you might lose money.

There are exchange-traded funds, or ETFs, that trade in both bitcoin futures and bitcoin’s spot price. The bitcoin ETF that is right for you, however, depends upon many factors, including your risk tolerance and investment horizon.

When we first think of crypto, we usually think of bitcoin. That’s because bitcoin represents more than 45% of the total cryptocurrency market. So when we talk about any cryptos outside of bitcoin, all of those cryptos are considered altcoins.

Part of what makes Bitcoin so valuable is its scarcity. Bitcoin’s maximum supply is limited to 21 million coins. Currently, there are 19 million coins in circulation.

To create supply, Bitcoin rewards crypto miners with a set bitcoin amount. To be exact, 6.25 BTC is issued when a miner has successfully mined a single block. To keep the process in check, the rewards given for mining bitcoin are cut in half almost every four years.

While the initial premise of cryptocurrency was to fix the problems with traditional currencies, there are now a whole host of utility cryptocurrencies that have sprung up, thanks to the creation of the blockchain.

Michael is Deputy Editor, Cryptocurrency at Forbes Advisor. He began his financial writing career in 2005 as a marketing copywriter, which is how he refined his investing knowledge and skills. Over the years, he’s written editorial and marketing pieces for many of the world’s leading financial newsletters and publications. His main investing interests are technology, blockchain and cryptocurrency.