Cryptocurrencies exist in different categories, including utility tokens like Ethereum, transactional tokens such as Bitcoin, governance tokens, platform tokens, and security tokens, each with unique roles on their respective blockchains. To acquire cryptocurrencies, individuals usually purchase them through exchanges and store them in digital wallets.
Cryptocurrencies, especially Bitcoin and Ethereum have seen substantial growth, driven by increasing demand from both institutional and retail investors. Bitcoin’s recent rally reflects a growing recognition of its value beyond speculative investment. Despite some volatility, including pullbacks in response to market de-risking, the overall trend points to Bitcoin becoming a mainstream asset. Regulatory clarity, institutional involvement, along with technological advancements and the potential for a Bitcoin strategic reserve, are all contributing to a new phase of growth for Bitcoin.
READ ALSO: 10 Companies Hoarding Bitcoin Like There’s No Tomorrow and 8 Stocks on Jim Cramer’s Radar.
How Bitcoin Is Gaining Momentum and Shaping Markets
In a Yahoo Finance interview, Bitwise’s chief investment officer Matt Hougan said that by December 2025, Bitcoin will surpass $200,000, driven by three key demand factors: the growth of Bitcoin ETFs, companies like MicroStrategy continuing to acquire Bitcoin, and potentially governments purchasing Bitcoin for reserves. He emphasized that Bitcoin’s price will rise due to supply constraints and sustained demand from several investor groups, including retail, financial advisors, companies, and institutions. As global awareness and education about Bitcoin grow, more investors will incorporate it into their portfolios, further boosting its value.
Regarding the idea of a Bitcoin strategic reserve proposed by politicians like Senator Lummis and supported by figures in the Trump administration, Hougan suggested that if the U.S. government buys a significant amount of Bitcoin, it could push prices up dramatically, potentially reaching $300,000 to $500,000 per Bitcoin. While he believes the chance of this happening is still less, the impact would be substantial if governments worldwide follow suit.
Additionally, Hougan forecasted that Coinbase will surpass Charles Schwab in brokerage size. He explains that the crypto-brokerage’s growth is driven by its dominant position in the market, aided by regulatory uncertainty that has limited competition. As the cryptocurrency industry grows, it stands to benefit from its market leadership, stablecoin offerings, and expansion into Layer 2 networks. Hougan also mentioned that the brokerage’s stock could experience a significant boost if it joins the S&P 500, as institutional investors would likely increase their exposure.
10 Best Cryptocurrencies to Buy for Beginner Traders According To Reddit
Our Methodology
For this article, we scoured through threads to find 20 cryptocurrencies the platform users are suggesting for beginner traders and investors. We narrowed the list to 10 currencies that were most popular among the users and listed them in ascending order of their market capitalization. You can also look into the Bitcoin and Blockchain stocks hedge funds are interested in here: 10 Best Bitcoin and Blockchain Stocks To Buy Right Now.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. LiteCoin
Market Cap: $7.76 Billion
Value as of December 27: $100.23
LiteCoin is a decentralized cryptocurrency launched in 2011 by Charlie Lee. It was created as a “silver to Bitcoin’s gold,” offering faster transaction times and lower fees due to its use of the scrypt algorithm, which was designed to be resistant to specialized mining hardware. Litecoin’s block generation time is 2.5 minutes, much shorter than Bitcoin’s 10 minutes. It has a maximum supply of 84 million coins, four times that of Bitcoin, with 75.35 million currently in circulation.
Over time, Litecoin has added features like merge mining with Dogecoin and, in 2022, implemented optional privacy features through the MimbleWimble Extension Block (MWEB) upgrade. It is supported by various payment processors, including BitPay, and allows for easier transaction processing on third-party platforms.
9. SUI
Market Cap: $11.9 Billion
Value as of December 27: $4.08
Sui is a layer-1 blockchain built for global use, offering a fast, secure, and scalable platform. It uses an object-based data model and the Move programming language to improve efficiency. Sui focuses on making Web3 easier for users. SUI is the native coin of the Sui network, with a total supply capped at 10 billion. The SUI token is used for staking, paying transaction fees, and supporting applications on the platform, such as exchanges and games. It also lets holders vote on important decisions, like upgrades. Sui’s design ensures that validators are fairly rewarded and that data storage is sustainable in the long term. As Sui grows, the finite supply of SUI and the storage fund help manage its value by reducing circulating coins as data requirements increase. At the time of writing on December 27, SUI has a 24-hour trading volume of $948.8 million and is valued at $4.08.
8. Tron
Market Cap: $22.32 Billion
Value as of December 27: ~$0.26
TRON (TRX) is a decentralized blockchain platform launched by the Tron Foundation in 2017. Initially, TRX tokens were ERC-20 tokens on Ethereum but transitioned to their own network the following year. The platform was designed to give content creators full ownership of their work and enable direct compensation from consumers, eliminating intermediaries like YouTube and Facebook. TRX can be acquired through staking or exchanges but not through mining. As of December 27, TRX is valued at around $0.26, dropping from its all-time high of $0.40 on December 4. Nevertheless, it has gained nearly 141% year-to-date.
The Tron Foundation, founded by Justin Sun in 2017, aimed to create a decentralized platform for content creators to share and monetize their work without intermediaries. In 2018, Tron acquired BitTorrent to enhance content-sharing capabilities. However, the original content-sharing model didn’t gain traction, leading to a shift towards decentralized app development.
7. Cardano ADA
Market Cap: $31.27 Billion
Value as of December 27: $0.8737
Cardano’s native cryptocurrency, ADA, operates on a proof-of-stake blockchain, offering a greener alternative to Bitcoin’s energy-intensive proof-of-work system. Launched in 2017, ADA can be used for transactions, staking, and participating in governance within the Cardano ecosystem. It is named after Ada Lovelace, with one ADA equaling one million Lovelaces.
Cardano is a decentralized blockchain platform that uses the proof-of-stake protocol for consensus. Cardano’s design is focused on overcoming the scalability and security issues seen in other cryptocurrencies. ADA is used for staking, where holders can delegate tokens to help validate transactions and earn rewards. The currency’s value has been impacted by legal challenges, such as the SEC’s scrutiny over its classification as a security. Cardano’s ADA remains a significant cryptocurrency in the market, with applications in various sectors, including education, finance, and supply chain management.
6. DogeCoin
Market Cap: $45.8 Billion
Value as of December 27: $0.31
Dogecoin (DOGE) is a peer-to-peer cryptocurrency created in 2013 as a joke in 2013 by Billy Markus and Jackson Palmer, who felt cryptocurrency was too serious. Inspired by the Doge meme featuring a Shiba Inu dog, it quickly gained popularity, especially on Reddit, where it became a tipping currency. DOGE outpaced Bitcoin in daily transactions.
It uses the Scrypt algorithm and a “proof-of-work” protocol, making mining less power-intensive than Bitcoin. Dogecoin has no supply limit, leading to inflation. Elon Musk is a huge proponent of DOGE and has even proposed integrating Dogecoin into a digital economy, aiming to position it as a key currency in futuristic technologies like IoT and AI-driven systems. DOGE is the only cryptocurrency that Musk’s company Tesla accepts.
5. Solana
Market Cap: $88.13 Billion
Value as of December 27: $183.7
Solana is a cryptocurrency that was launched in 2020 and runs on the Solana blockchain, which is built to handle fast transactions and support decentralized applications. One of its unique features is Proof of History (PoH), which works alongside the Proof of Stake (PoS) system to help verify the order of transactions. This allows the network to process a large number of transactions quickly. The total supply of Solana is 590.9 million, with 479.535 million currently in circulation. It is actively traded across 816 markets.
The Solana network is designed to scale efficiently, with fast block times and quick finality. This makes it possible for apps to grow without slowing down or getting too expensive. Solana also uses a single global state, which means that different projects on the network can work together smoothly without needing separate layers or additional solutions.
4. BNB Coin
Market Cap: $100.707 Billion
Value as of December 27: $690.35
Binance Coin (BNB) is a cryptocurrency created in July 2017 that originally launched as an ERC-20 token on Ethereum before transitioning to Binance’s own blockchain, Binance Chain. BNB is primarily used for trading and paying transaction fees on the Binance exchange, offering users a discount. Beyond the exchange, BNB has various uses, including credit card payments, booking travel, and investment opportunities. Initially, 100 million BNB tokens were sold during an ICO, raising $15 million. Binance also conducts quarterly “burns” of BNB to reduce its supply and increase scarcity, aiming to eventually destroy 50% of the total supply.
3. XRP
Market Cap: $122.95 Billion
Value as of December 27: $2.14
XRP, launched in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto, is a digital currency designed to enable fast, low-cost cross-border payments. It runs on the XRP Ledger, which uses a consensus protocol for quick transaction validation, settling payments in just 4 seconds. The XRP Ledger, launched in 2012 by Ripple Labs, is a platform using XRP as its native cryptocurrency. XRP was entirely pre-mined, with 100 billion tokens created, 80 billion of which were gifted to Ripple Labs. XRP has faced regulatory scrutiny, but its focus remains on enhancing payment speed and scalability.
2. Ethereum
Market Cap: $400.750 Billion
Value as of December 27: $3,328
Ethereum, created by Vitalik Buterin in 2013, took blockchain beyond just digital money by allowing smart contracts and decentralized apps. It officially started in 2015 and gained attention after the 2016 DAO hack, which caused the network to split into Ethereum and Ethereum Classic. Key achievements include forming the Enterprise Ethereum Alliance, introducing NFTs with the ERC-721 standard, and switching to a more energy-efficient proof-of-stake system in 2022. With updates like “Dencun” in 2024, Ethereum keeps growing and supporting new uses for blockchain technology. Spot Ethereum ETFs were approved for trading in July 2024.
1. Bitcoin
Market Cap: $1.87 Trillion
Value as of December 27: $94,330
Bitcoin was the first cryptocurrency. Born from a vision of decentralization, it operates without borders, intermediaries, or the constraints of traditional systems. Beyond just a digital currency, Bitcoin has become a symbol of innovation, attracting investors, tech enthusiasts, and visionaries alike. Bitcoin is the most popular and valuable cryptocurrency in the world.
Its first ETFs were launched after spot Bitcoin exchange-traded funds were approved on January 10, 2024. BlackRock’s iShares Bitcoin Trust (IBIT) holds the largest amount of Bitcoin at nearly 552K as of December 27. At the time of writing, over $47.6 billion worth of Bitcoin has been traded in the last 24 hours and is trading on over 11,850 active markets.
While we acknowledge the potential of Bitcoin as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure. I own Bitcoin. I don’t plan to make any changes to my positions in the next 48 hours. This article is originally published at Insider Monkey.
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