Since the launch of the foremost digital cryptocurrency, Bitcoin, numerous alternative currencies (altcoins) have come onto the scene, opening an avenue for investors to search for the top altcoins to buy.
The mind-boggling success BTC enjoyed has been a major factor in giving rise to the over 16,000 altcoins now in the market. This listicle seeks to help investors navigate their way in selecting the top altcoins that will yield maximum profits.
1. Ethereum (ETH)
Ethereum, without a doubt, takes the top position on the list of the top altcoins to buy this week.
Ethereum is a decentralised open-source blockchain, with Ether as its native token. Many other cryptocurrencies are built on the Ethereum blockchain because it is suited for executing decentralised smart contracts. Many other decentralised apps (dApps) have found a favourable home in Ethereum.
Ethereum uses a proof-of-work (PoW) consensus mechanism to validate transactions on its blockchain. However, users have complained about the high gas fees and slow transaction speed. Ethereum plans to address these issues by switching to Ethereum 2.0, which will operate the proof-of-stake (PoS) algorithm to allow for more scalability.
According to market cap, the number one altcoin and the second crypto asset has recorded over $15.36 billion, down 6.72% in trading volume in the last 24 hours. Ethereum is trading at $3,262.41, down 2.82% in 24 hours.
2. Binance Coin (BNB)
The native token of Binance, BNB, is a worthy mention on our list of the top altcoins to buy for high profit this week. BNB, the native token of Binance, has excellent use cases and ranks highly amongst investors.
Binance, the world’s largest crypto exchange based on trading volume, gives a 25% fee discount for any trade using BNB on its platform. The number 3 ranked digital asset enjoys a generous 3.94% market dominance of the $2.04 trillion nascent crypto market.
The tokenomics of BNB shows that the digital asset has the same number of tokens as total supply and circulating supply, pegged at 166.8 billion tokens each. This was achieved by the massive token burn, which always ramps up the price of crypto assets.
After climbing to an all-time high (ATH) of $690, BNB is trading at $470.5, down 1.12% in the last 24 hours. This peg price presents investors with an opportunity to enter the market and buy BNB so they can make huge profits in the days to come.
3. Solana (SOL)
One of the top altcoins to buy this week is Solana. Solana operates a permissionless blockchain technology and a huge boost for decentralised finance (DeFi).
Decentralised app (DApp) creation finds a haven in the Solana protocol. The network protocol improves scalability by employing a hybrid consensus mechanism; the proof-of-history (PoH) consensus coupled with the proof-of-stake (PoS) consensus mechanism.
Without any doubt, this is the best opportunity to buy SOL after the utility token fell 44.37% from an impressive ATH of $260.06 attained on November 6, 2021. The 24-hours trading volume of SOL is up 2.86% to over $2.367 billion in the last 24 hours.
Formfunctions, whose aim is to help independent creators make a living out of non-fungible tokens (NFT), has partnered with the Solana blockchain to build a marketplace for NFTs.
This is good news for holders of SOL as this news can push SOL to reach previous highs and even surpass it because of the huge traction NFTs have been getting in recent times. At press time, Solana is trading at $143.72, down 2.08% in the last 24 hours.
4. Terra Luna (LUNA)
Terra LUNA’s immense usage as fiat-pegged stablecoins that facilitates global payments systems earns the asset one of the top altcoins to buy.
LUNA provides a platform for fast and affordable payment by bringing together the price stability that fiat currencies are known for and the censorship-resistance of Bitcoin.
Many stablecoins are pegged to the U.S Dollar and other fiat currencies globally using LUNA. The native token of Terra, LUNA, is used to stabilise the protocol’s stablecoins price.
LUNA holders are entitled to vote on proposals and developmental projects happening within the blockchain network.
The 24-hour trading volume has seen LUNA record over $2.395 billion, down 5.38% in the last 24 hours.
The digital asset is trading at $77.38, down 1.23% in the last 24 hours. LUNA is still a long way off the ATH of $103.33 attained on December 27, 2021. Smart investors will see this as an opportunity to buy LUNA and ride with the market.
5. Polkadot (DOT)
Polkadot, another open-source multichain protocol that facilitates the cross-chain transfer of data, is one of the top altcoins to buy.
Not only is Polkadot known for scalability, but it is also popular for making blockchains interoperability possible. As a Web3 protocol, Polkadot brings high scalability and also allows other blockchains to build on it.
Polkadot also has a decentralised autonomous organisation (DAO) which allows community members to participate in governance and vote regarding updates on the blockchain networks. Holders of DOT can make money by staking the tokens.
After recognising how important Polkadot is, the Klever ecosystems decided to partner with the blockchain protocol by adding support for DOT on the Klever wallet.
The 10th ranked crypto asset with a market cap in excess of $25.49 billion remains a good altcoin to buy to make big gains. After rallying to an impressive all-time high (ATH) of $55 on November 4, 2021, DOT saw a price retrace when the bears completely took over the entire crypto market.
During the bear market, Polkadot broke the $20 support price and traded below $18 before making its way back up. Why not jump in now while the price of DOT remains on the downside before the digital asset begins marching up north. DOT is trading at $26.26, up 1.82% in the last 24 hours at the time of writing.