4 Cryptocurrencies Ready to Soar As Crypto Market Heats Up

Published:

Heading into 2024, the crypto market is quickly becoming one of the hottest areas of the investment world. Many top cryptos have seen triple-digit gains this year, and analysts are expecting even more gains in the future.

To help investors get ready for the year-end holiday season, I’ve identified four cryptos that should be on their shopping list. These cryptos are Bitcoin (BTC -0.26%), Solana (SOL -1.08%), XRP (XRP -1.26%), and Cardano (ADA 1.03%). All of these rank among the top 10 in terms of market capitalization, provide real utility and functionality, and have strong long-term growth prospects.

Starting with Bitcoin, it is arguably the single best crypto to add to any portfolio. It represents a great balance of risk and reward, and has a market capitalization of 54% of the entire crypto market. On top of that, Bitcoin is a favorite of both retail and institutional investors.

In 2024, Bitcoin is expected to receive two catalysts. The first is the arrival of the first-ever spot Bitcoin ETF for the U.S. market. If approved by the SEC, this could bring a new wave of institutional money into Bitcoin. The second is the Bitcoin halving, which is scheduled for April and has caused Bitcoin to rally in the past.

Next up is Solana, which is up 540% this year and continues to climb. Even though it may not be wise to invest in a crypto that is based solely on momentum, Solana is a great long-term, buy-and-hold investment. Institutional investors are moving out of Ethereum and into Solana, and Cathie Wood of Ark Invest says that it’s a faster and more cost-effective version of Ethereum.

Cardano is the most undervalued and ignored crypto right now. People don’t seem to be impressed with its rigorous and academic approach to blockchain innovation, or its all-time high of $3.10. But underneath the surface, Cardano is making a lot of progress with decentralized finance (DeFi) and its total value locked (TVL) continues to rise.

Finally, there is XRP, which trades for just $0.62. XRP is close to resolving its three-year court case with the SEC, and has already doubled in price following a recent court victory. Investing in XRP is still a form of market timing, as investors are only focusing on the date of victory. But if you’re looking for a low-cost, high-reward investment, XRP might be the way to go.

When allocating these cryptos to a portfolio, it’s important to remember that Bitcoin should represent at least half (or more, if you’re risk-averse) of the allocation. Meanwhile, XRP should be limited to no more than 10%, given its speculative nature.

This holiday season is going to be a memorable one for crypto investors, so it could be time to invest in one or more of these cryptos.

Related articles

Recent articles