More than a decade has passed since the world’s most famous cryptocurrency Bitcoin (BTC) was created. Today, the market has a plethora of digital coins and tokens for investors and traders to choose from. Should you pick some well-established giants like Ether (ETH) and Litecoin (LTC), or relatively new but promising projects like PolkaDot (DOT) and Uniswap (UNI)? Or should you play it “safe” and go for the industry’s gold – Bitcoin?
What is the best cryptocurrency to invest in today?
To help you better navigate the options available, in this article, we review the latest market developments and take a look at four coins that could find a spot in your portfolio in November.
The latest crypto market overview: positive news dominates the headlines
In such a rapidly-developing and dynamic industry, it might be rather difficult to extract the main themes that drive liquidity. However, following the latest developments in adoption rates, demand and regulations can make it easier to predict the nearest future of the market. For that, we have gathered some of the latest news that you need to know before making your own list of the best cryptocurrencies to invest in.
On October 21, the world-renowned digital payment service PayPal (PYPL) revealed the launch of a new service that will allow users to buy, hold and sell cryptocurrencies within its digital wallet. According to its press release, the service is expected to become available in the US in the coming weeks and will initially feature BTC, ETH, BCH and LTC.
The company’s CEO Dan Schulman commented: “The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly.
The business plans to expand the features to its Venmo service and international markets in the first half of 2021, as well as allow its customers to use crypto to shop with its network of 26 million retailers around the globe.
However, PayPal is not the first large company to show interest in crypto this year. For example, financial technology firm Square (SQ), co-founded by Twitter’s CEO Jack Dorsey, has recently bought 4,709 bitcoins for $50m, while MicroStrategy has purchased $425m worth of BTC over the past couple of months and intends to buy even more.
Many central banks have also started to recognise the value and potential of cryptocurrencies. While the People’s Bank of China has been busy conducting trials for its new digital currency, e-RMB, the world’s seven top central banks, including the Bank of England, the European Central Bank and the Federal Reserve, have recently set out a framework for how central bank digital currencies, or CBDCs, could work.
More positive news is coming from India, a country where the central bank’s two-year-old ban on cryptocurrency trading was overturned earlier this year. In their report, the online banking platform Cashaa announced its new joint venture with the United Multi State Credit Cooperative Society. Named UNICAS, the joint venture will provide clients with cryptocurrency services, such as crypto savings accounts and crypto investments, alongside traditional banking at 22 locations in north India.
Dinesh Kukreja, managing director of United Multistate Credit Cooperative Society and CEO of UNICAS, commented: “This will allow us to build, scale and offer customised financial and crypto products for the local Indian markets.”
The UNICAS will launch in December 2020, offering eight cryptocurrencies for purchase with Indian rupees: BTC, LTC, BCH, ETH, XRP, EOS, BNB and Cashaa’s CAS.
Southeast Asia’s largest bank by assets, DBS Bank, is also launching a new fiat-to-cryptocurrency exchange. According to the bank's now-deleted webpage, the trading platform will allow users to trade BTC, BCH, ETH, ETC and XRP against the US dollar, Japanese yen, Singapore dollar and Hong Kong dollar.
So, against the backdrop of such positive developments within the industry, what does the list of the top cryptocurrencies to invest in look like right now?
The best cryptocurrencies to invest in November: our 4 go-to picks
In the third quarter of 2020, Ethereum’s market cap soared by 60 per cent, going from $25bn to $40.5bn by the end of September. At one point, on September 1, ETH jumped to trade at $483.64 per coin, with its market cap reaching $54.4bn. It then ended the month sliding to $358.5.
In the following weeks, the cryptocurrency yet again surprised many investors when its price spiked above the $410 mark on October 22.
Founded in 2014, Ethereum is now standing at the forefront of the decentralised finance (DeFi) boom. If the trend is to continue, it could drive interest of both retail and institutional investors in ETH higher.
In the meantime, while the ETH futures market is still smaller than that of BTC, it is steadily growing. For instance, the daily transaction volume of ETH futures reached a record $14bn on August 2, while in September, the monthly volume surged from $163.1bn to $172.2bn.
Growing DeFi popularity, as well as successful Ethereum 2.0 upgrade and increasing adoption rates of ETH, will likely support the coin’s price going forward.
At the time of writing, on November 2, the world’s second-largest cryptocurrency traded at $385.50 per coin.
Known as the third-generation cryptocurrency, Cardano’s ADA was launched in 2015. The price of the coin hit this year’s bottom at $0.024 during the broader March sell-off. It then started to rise exponentially, peaking at $0.15 in July 2020.
After hovering around the $0.14 level for the following three weeks, ADA had entered a downtrend, falling to $0.075 by September 24. A powerful 33 per cent hike followed, with the coin climbing above $0.1 and reaching $0.113 on October 13.
Cardano has successfully transitioned from the Byron to the Shelley era and initiated several developments on Voltaire earlier this year. Its voting app Catalyst has recently been published on the Google Play Store, allowing more users to have easier access to vote for the project’s new initiatives. Moreover, its Daedalus Wallet has also received a number of performance updates and security improvements.
Cardano’s upcoming Goguen era, which will introduce new features like smart contracts and decentralised applications, is seen as one of the most important steps for the project to become a real Ethereum challenger. According to the roadmap, the Goguen mainnet is estimated to launch in around February or March 2021.
Currently, ADA is changing hands at $0.093 per coin.
After Ripple’s XRP lost its title of the third-largest cryptocurrency to Tether (USDT), many rushed to get it off their lists of the good cryptos to invest in. But did the coin really stop being as “shiny” as before?
Just like many of its peers, XRP shed in value dramatically during the broader market crash this March. However, after falling to around $0.15, the coin has since recovered most of its losses to trade at $0.235.
Today, XRP remains one of the biggest cryptocurrencies in the market, fuelling the unique, open-source platform created to enable quick and cheap transactions. Throughout the years, Ripple has earned the trust of many large financial institutions, such as the Bank of America (BAC), HSBC Holdings (HSBA), JP Morgan (JPM), HDFC Bank Limited (HDB), Mizuho Financial Group (8411), Sumitomo Mitsui Financial Group (8316) and MoneyGram.
With the project developing further, Ripple has recently announced that it is going to expand into the lending business, facilitating lower-cost financing for cross-border payments. In its blog post, the company revealed its new Line of Credit service available for customers using On-Demand Liquidity (ODL) on RippleNet.
Many argue that the global switch from the traditional financial system to blockchain and crypto is just a matter of time. And as XRP boasts an ability to contribute to such a transition on an institutional level, the coin fairly deserves its place in our list of the best cryptos to invest in now.
While there are a lot of new, rising cryptocurrencies making waves right now, BTC remains one of the investor favourites, holding approximately 65 per cent of the overall crypto market cap.
After plunging below $5,000 in March, the coin rallied before the halving event on the back of improved investor sentiment. On May 9, BTC traded at $9,961. It then went on an emotional rollercoaster during the summer, jumping from $10,000 in the first days of June, to $9,012 on June 28, and $12,319 on August 17.
In early September, BTC started losing value rapidly, dropping to $9.943 on September 7. However, another uptrend was right around the corner, and the coin has soared to trade at more than $13,000. On October 28, BTC hit $13,837 per coin, its highest price since January 2018. On October 31, its value jumped past $14,000.
Following the news from Square and PayPal, analysts at America’s JP Morgan noted that the “potential long-term upside for bitcoin is considerable”, citing its popularity with younger users as one of the reasons that could allow it to compete “more intensely with gold as an alternative currency”.
In the meantime, Glen Goodman, author of the book The Crypto Trader, referred to the coin as a “hard currency”. He said: “The dollar has been depreciating as a consequence, and a lot of investors – and even companies – are starting to hedge their dollar holdings by diversifying into ‘hard currencies’ like gold and Bitcoin.”
In a series of tweets, the co-founder of Morgan Creek Digital, Anthony Pompliano, shared his view that Bitcoin is now the “ultimate safe haven” for investors, breaking away from its correlation with the stock market.
As the industry's unswerving gold standard, Bitcoin continues to be the best crypto to invest in today.
How to take advantage of the volatile crypto market
Crypto investments are always risky. For that, when choosing what cryptocurrencies to invest in, you have to consider several factors, from the latest market trends and technical analysis to your own risk appetite. Therefore, regardless of what asset you choose – the prominent BTC or ETH, stable developing projects like ADA, XLM, or NEO, or some rising cryptos like DOT or ATOM – we always recommend you do as much research as possible to build a winning investment strategy.