Best Crypto to Invest in Now: My 2024 Cryptocurrency Portfolio Strategy

Gianluca Lombardi, 12 min read
Last Updated: 11 February, 2024

So here we are in the midst of a bull market and we have Bitcoin trading just below its ATH at $72,000.

This is a strong indication that the market is primed for growth and investors are on the lookout for potential gains.

Sounds like you?

It is likely a good time to consider how to diversify your crypto portfolio give the bull market is around the corner.

In this blog post I will share my 7 years of experience with crypto investment portfolio, after being active in the crypto space for already 2 Bitcoin cycles – the one in 2017 and the one in 2021.

I’ve accumulated a wealth of knowledge—some of it learned the hard way.

The mistakes I made and how I learned from them to improve my crypto investing strategy.

So you don’t have to make the same mistakes to learn from them by losing capital.

I’ll explore best practices for allocating to your crypto trading or investing portfolio.

Mistakes I Made – and You Can Avoid

1. Over-Investing in Altcoins (Sh*tcoins) in 2017

In the 2017 crypto boom, I got carried away and invested heavily in numerous altcoins as a long term move.

TenX, Vechain, Neo…

LOL

These were obvious speculative, unproven cryptocurrencies that I thought will give me high returns but were fundamentally weak.

The result was a significant loss of Bitcoin value after these coins depreciated rapidly when the market turned.

Don’t repeat my mistake.

2. Ignoring Fundamental Analysis

Led by greed, I often skipped doing thorough research on the market viability and technological foundation of the coins I invested in. This oversight led to poor investment choices that didn’t withstand market pressures.

Greed is an easy emotion to recognize, don’t fall for it.

3. Failing to Take Profits

During the bull run, I missed opportunities to take profits by holding too long, driven by greed again for even higher returns.

I was feeling like I am letting down my previous investment decisions and was stubborn to hold these nonsense altcoins.

This resulted in potential gains evaporating with the market correction.

Don’t hesitate to take profit, even if the price follow with another rise afterwards. It’s fine.

Lessons I Learned – and You Can Apply

1. Avoiding Long-term Shitcoins in 2021

In the following bull market of 2021, I had learned from these 2017 mistakes and became much more selective with my investments.

I understood that even these high-risk coins could potentially deliver 100x returns, they were more likely to lose 90% of their value in a bear market. This cautious approach preserved my capital and prevented significant losses.

2. Strategic Trading to Accumulate Bitcoin

Instead of investing in altcoins long-term, I began trading them strategically to accumulate more Bitcoin. I focused on Bitcoin as my primary asset and started messuring my portfolio in BTC rather than EUR or USD.

3. Implementing Stop-Losses and Taking Profits

One meaningful adjustment in my strategy was the disciplined use of stop-loss orders to sell coins before they could incur even larger losses.

I started to take profits systematically during price surges, which helped lock in gains and reinvest them wisely.

Without feeling bad about it.

From Bitcoin to Ethereum and from Ethereum to Altcoins

Here’s a pattern I’ve noticed—and you might have seen it too.

After a big Bitcoin rally, attention often shifts to Ethereum.

Because people are looking for the next Bitcoin, thinking it is already too expensive.

But then they move to altcoins. Looking for memes, dogs, cats and all the nonsense. Because people are greedy and they like to gamble.

Trading these coins is fine, but take it with caution about long-term investment. It all comes down to fundamental analysis, which I focus on later in the post.

Building a Smart Crypto Portfolio in 2024

Let’s be real: I made some costly mistakes during the 2017 cycle. I got caught up in the excitement of new coins that promised to change the world but ended up going nowhere.

Many didn’t last, and some were scams.

By 2021, I had learned to be more selective. I looked for altcoins with real technology and solid teams behind them. I learned to look past the hype and really understand what was going on behind the scenes.

Here’s the bottom line: diversification is key. In the crypto world, this means not all coins are the same. Bitcoin is like the anchor of my portfolio—it’s stable and dependable. Ethereum offers a bit more growth with a reasonable amount of risk. And altcoins? They’re my chance to really win big, but they’re also risky.

The right mix depends on how much risk you’re comfortable with and your financial goals. For me, it means having a good balance of reliable assets and potential big winners, so I’m not up all night worrying about losing everything on a risky bet.

My selections is driven by what I expect from the market in 2024 and is closely related to cyclical character of Bitcoin – the strongest player and the market mover.

Example Portfolio Composition

our crypto portfolio

Investment Disclaimer

The information provided here does not constitute investment advice, financial advice, trading advice, or any other sort of advice, and you should not treat any of the website’s content as such. We do not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

My portfolio is diversified across the top 10 most capitalized cryptocurrencies with strong fundamentals and making sense use cases.

I explore them one by one later in this article.

The allocations are periodically reviewed and adjusted following closely Bitcoin’s dominance and funds flowing into altcoins.

Top 10 Best Cryptocurrencies to Buy in 2024

Based on thorough analysis using the aforementioned crypto evaluation framework, the following cryptocurrencies emerge as the top blockchain projects likely to deliver value in 2023 and beyond.

1. Bitcoin (BTC) – the best to buy now?

Bitcoin (BTC) (50% of our portfolio) requires little introduction. According to the market demand, this is the best crypto to invest in. Key aspects include:

  • Created in 2009 by the anonymous Satoshi Nakamoto.
  • Maximum supply of 21 million BTC with over 19 million currently in circulation.
  • Decentralized blockchain using proof-of-work secured by mining.
  • Primary use cases as digital gold store of value and payment system.
  • Accepted by thousands of merchants and businesses globally.

bitcoin logo with background

Bitcoin’s selection for half of our investment portfolio in 2024 was driven by its established position as the foremost and most mature cryptocurrency in the market, bolstered by the SEC’s approval of a Bitcoin ETF in January, signaling growing institutional acceptance and Wall Street’s increasing involvement in the crypto space, coupled with the expected bullish impact on its price due to the Bitcoin halving event slated for April 2024.

Not sure how to get started? Check this bitcoin buying guide.

2. Ethereum (ETH) to invest in 2024

Ethereum (20% of our portfolio) stands as the second-largest cryptocurrency project and essentially created the concept of programmable smart contracts and decentralized applications (dApps).

  • Launched in 2015 by Vitalik Buterin and other co-founders.
  • No fixed maximum supply but annual issuance is capped.
  • Current proof-of-work model transitioning to proof-of-stake consensus.
  • Powers a vibrant ecosystem of financial and non-financial decentralized apps.
  • Settlement layer for most stablecoins, NFTs, metaverse, and blockchain gaming.

ethereum crypto to buy

In 2024, we allocated 20% of our investment portfolio to Ethereum, driven by its anticipated network upgrades enhancing scalability and efficiency, and the expected launch of an Ethereum ETF by Blackrock, signaling strong institutional interest and potential for significant market growth.

3. Binance Coin (BNB) to invest now

Binance Coin (temporary 0% of our portfolio) is the native cryptocurrency of the Binance cryptocurrency exchange platform. Some key aspects include:

  • Launched in 2017 by Changpeng Zhao, founder of Binance.
  • Maximum supply of 200 million BNB. Over 168 million currently in circulation.
  • Runs on the Binance Smart Chain, a Ethereum Virtual Machine compatible blockchain.
  • Primarily used on Binance exchange for trading fees and other platform services.
  • One of the most widely used utility tokens by market capitalization.

best crypto to buy - bnb logo

We recognize the investment potential of Binance Coin, but we are currently refraining from including it in our portfolio until the uncertainties surrounding its founder, CZ, and the growing regulatory pressures on Binance are clarified.

4. Cardano (ADA) best to buy now?

Cardano (4.9% of our portfolio) aims to evolve as a sustainable and scalable blockchain platform utilizing rigorous academic research having a large crypto community.

  • Founded in 2015 by Ethereum co-founder Charles Hoskinson.
  • Maximum supply of 45 billion ADA. Over 35 billion are currently in circulation.
  • Uses Ouroboros proof-of-stake which enables staking rewards for holders.
  • Roadmap focused on peer-reviewed research and controlled rollouts.
  • Home to decentralized finance apps and other DApps in development.

cardano logo with background

In 2024, we allocated 4.9% of our portfolio to Cardano, considering its strong potential for growth based on its continuous technological advancements, a committed development roadmap, and its increasing adoption in decentralized applications and solutions.

5. Solana (SOL) investment

Solana (5.5% of our portfolio) has exploded over the past year to become a top 10 cryptocurrency on the strength of its blazing fast speeds and low fees.

  • Launched in 2020 by Anatoly Yakovenko.
  • No fixed maximum supply. Current circulating supply around 350 million SOL.
  • Leverages proof-of-history and proof-of-stake consensus to enable 50,000+ TPS.
  • Sub-400 millisecond block times with low $0.00025 transaction costs.
  • Expanding ecosystem of DeFi, NFTs, Web3 apps built on Solana.

solana logo with background

Solana’s attractiveness as a 2024 investment stems from its high-speed, low-cost blockchain network, which is increasingly favored for decentralized finance (DeFi) and NFT applications, coupled with ongoing network improvements and growing developer and user adoption.

6. Polkadot (DOT) Investment

Polkadot (4.6% of our portfolio) utilizes a unique design focused on interoperability between different blockchains as well as internal parallelization.

  • Founded by Ethereum co-founder Gavin Wood.
  • Maximum supply of 1 billion DOT. Currently about 1 million DOT in circulation.
  • Uses Nominated Proof-of-Stake (NPoS) for consensus.
  • Key feature is customizable parachains that connect to the main Relay Chain.
  • Enables transfer of assets and data between varying blockchains.

polkadot logo with background

As blockchain interoperability gains importance, Polkadot aims to power the next generation of Web3 applications and services. The project shows promising potential.

7. Polygon (MATIC) investment 2024

Polygon (4.2% of our portfolio) functions as a Layer 2 scaling solution for Ethereum in the form of a sidechain to improve transaction speeds and reduce fees.

  • Originally launched as Matic Network in 2017.
  • Maximum supply of 10 billion MATIC. Around 7.5 billion currently in circulation.
  • Leverages proof-of-stake consensus model.
  • Operates as a sidechain with a Ethereum bridge.
  • Supports a rapidly growing ecosystem of DeFi, NFTs, metaverse, and more.

polygon logo with background

By enhancing Ethereum’s scalability, Polygon helps expand decentralized finance and Web3 adoption. Polygon’s growth directly relates to Ethereum’s success.

Chainlink (4.2% of our portfolio) serves as a decentralized oracle network that supplies external data to blockchains to expand the capabilities of smart contracts.

  • Founded originally in 2014 by Sergey Nazarov.
  • Total supply of 1 billion LINK. Around 400 million currently circulating.
  • Node operators provide off-chain data feeds secured by crypto incentives.
  • Integrated with all major blockchains and DeFi protocols.
  • Key role supplying price feeds to DeFi ecosystems.

chainlink crypto logo with background

With strong developer mindshare and a proven track record, Chainlink oracles provide the essential data infrastructure to power the growth of DeFi and Web3 applications.

9. Injective Protocol (INJ) investment analysis

Injective Protocol aims to be the decentralized finance layer for cross-chain derivates trading and decentralized exchanges.

  • Launched in 2020 after founding in 2018.
  • Maximum supply of 100 million INJ. Currently around 35 million in circulation.
  • Leverages Tendermint delegated proof-of-stake consensus.
  • Fully decentralized exchange focused on derivatives trading.
  • Aims to establish decentralized finance ecosystem for trading markets.

injective protocol best crypto to buy now

As derivatives and trading expand in decentralized finance, Injective provides the leading protocol specifically focused in this niche. Its team background in trading helps drive development.

10. Dogecoin (DOGE)

Dogecoin stands as one of the most prominent meme coins with a passionate community.

  • Created in 2013 by software engineers Billy Markus and Jackson Palmer.
  • No maximum token supply. Over 132 billion DOGE currently circulating.
  • Utilizes a PoW mining algorithm similar to Litecoin.
  • Originally created as a joke but has grown a large fanbase including Elon Musk.
  • Low fees and fast transactions time have made it popular for tipping online.

While some view Dogecoin as a joke, its branding and adoption by a devoted community could enable it to carve out a long-term niche. Backing by high-profile figures also bolsters its visibility. The unlimited supply remains a concern for maintaining value over the long-term.

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Best Cryptocurrency to Invest In Ranked 11-30

Expanding beyond the top 10, here is an overview of notable top crypto projects ranked 11-30 that warrant further research:

Rank Cryptocurrency Description
11 Cosmos (ATOM) A decentralized network of independent parallel blockchains, aiming to create an Internet of Blockchains.
12 Decentraland (MANA) A virtual reality platform powered by the Ethereum blockchain.
13 Alpantic (ALPACA) Leverage trading platform serving as a DEX alternative.
14 Aave (AAVE) Leading decentralized finance protocol for lending and borrowing.
15 Monero (XMR) Leading privacy-focused cryptocurrency using untraceable transactions.
16 Kusama (KSM) Experimental blockchain for testing Polkadot upgrades.
17 Ethereum Classic (ETC) Original Ethereum blockchain now serving as a smart contract platform.
18 VeChain (VET) Enterprise-focused blockchain for supply chains and logistics.
19 THORChain (RUNE) Decentralized liquidity protocol enabling cross-chain swaps.
20 Elrond (EGLD) Scalable blockchain platform using sharding for high throughput.
21 Theta Network (THETA) Decentralized video streaming and delivery network.
22 Hedera Hashgraph (HBAR) Alternative distributed ledger focused on speed and stability.
23 Neutrino USD (USDN) Algorithmic stablecoin aiming for stability without collateral.
24 The Graph (GRT) Indexing protocol organizing blockchain data feeds.
25 Loopring (LRC) Decentralized exchange protocol for building trading platforms.
26 1inch Network (1INCH) Decentralized exchange aggregator connecting DEX liquidity.
27 PancakeSwap (CAKE) Leading decentralized exchange on Binance Smart Chain.
28 Basic Attention Token (BAT) Enables advertisers to pay users for viewing ads.
29 Zcash (ZEC) A privacy-protecting, digital currency built on strong science.
30 KuCoin Token (KCS) Native token of the KuCoin cryptocurrency exchange.

This list highlights established projects that have carved out real-world roles serving as stablecoins, oracles, DEXs, scaling solutions, and blockchain competitors. All demonstrate tangible value to the larger blockchain ecosystem.

Best Up-and-Coming Cryptocurrencies

In addition to the highest market cap cryptocurrencies, here are some emerging crypto assets to keep an eye on:

  • Avalanche (AVAX) – Blazing fast layer 1 platform that competes with Ethereum. Already has a thriving DeFi ecosystem.
  • Fantom (FTM) – Also a high-speed Ethereum compatible smart contract platform with low fees.
  • Tezos (XTZ) – Self-upgrading proof-of-stake blockchain with formal verification of smart contracts.
  • NEAR Protocol (NEAR) – User-friendly community-driven blockchain designed for usability.
  • Hedera Hashgraph (HBAR) – Alternative distributed ledger promising speed and stability.
  • The Graph (GRT) – Indexing protocol for organizing blockchain data feeds.
  • Internet Computer (ICP) – Platform for creating decentralized internet services and apps.
  • Filecoin (FIL) – Decentralized storage network using unused hard drive space.
  • Theta Network (THETA) – Blockchain-based video streaming and delivery network.
  • Shiba Inu (SHIB) – A meme cryptocurrency that has gained popularity as an alternative to Dogecoin, with a large online following and growing ecosystem projects.

These emerging cryptocurrencies demonstrate exciting potential in their respective technology niches. While higher risk than blue chip cryptos, they could generate substantial returns if adoption continues.

Analyzing Price History and Volatility

Analyzing a cryptocurrency’s price history can provide perspective on key price levels as well as previews of volatility potential.

For example, Bitcoin has seen several boom and bust cycles since its 2009 creation:

  • Early Trading – Bitcoin traded under $1 until early 2011, then spiked to $30 by mid-2011 before crashing back below $3 in late 2012. This established its extreme volatility early, even when adoption was minimal.
  • First Crypto Bull Run – Bitcoin skyrocketed to nearly $1200 by December 2013, only to decline back under $200 over the 14 months that followed.
  • 2016 Bull Run – After several years of relative calm, Bitcoin surged to around $19,800 in December 2017 only to plunge over 80% down under $3,300 by December 2018. Massive hype toward the end of this run brought in many newbie speculators.
  • Current Bull Run – After consolidating in the $20,000-$30,000 range for several months, Bitcoin took off starting in late 2023.

These peaks and troughs highlight Bitcoin’s historical volatility tied closely to hype cycles and booming media/retail attention followed by profit-taking crashes. However, adoption has increased significantly with each successive cycle. Learning to zoom out on price charts and focusing on long-term trendlines over headline prices can help overcome short-term volatility fears.

Technical Analysis of Cryptocurrency Price Charts

While cryptocurrency markets behave dynamically, historical price charts allow for technical analysis to inform trading decisions. Some key technical analysis tools include:

  • Trend Lines – Drawn to connect swing highs or swing lows to analyze directional biases. Upward sloping trendlines show bullish momentum.
  • Support/Resistance – Significant price levels where buyers/sellers tend to congregate. Acting as floors (support) or ceilings (resistance) for price movement.
  • Moving Averages – Lines drawn at the average closing price over set time periods (e.g. 20 days, 50 days, 200 days) to determine market bias. Golden/death crosses between moving averages signal major trend changes.
  • Trading Volume – Higher trading volumes provide confidence that a price move is backed by significant activity rather than artificial price action.
  • Market Cap – Found by multiplying circulating supply by price, market cap helps gauge a crypto’s overall size and ability to move higher. Comparing market cap to other assets illustrates relative upside potential.
  • Indicators (RSI, MACD, Stochastics) – Mathematical formulas that help assess overbought/oversold conditions and help confirm trend bias via crossovers.

No single indicator provides a perfect signal. Combining trend analysis, support/resistance zones, moving averages, volume, market cap, and indicator readings provides a more accurate picture of market conditions to inform trading decisions.

Fundamental Analysis of Cryptocurrencies

While technical analysis focuses on charts and indicators, fundamental analysis dives directly into a cryptoasset’s underlying characteristics and real-world developments to determine value. Key fundamental factors include:

  • Adoption Metrics – User growth, transaction count, active addresses, developer activity signal real adoption momentum critical for price appreciation.
  • Network Developments – Protocol improvements, integrations, tech upgrades expand functionality and utility boosting prospects.
  • Partnerships/Investments – Collaboration with corporations and institutional investment provides validity and enhanced reach.
  • Regulatory Changes – Evolving government regulations and oversight impact cryptocurrency accessibility and demand.
  • Market Dynamics – Macroeconomic trends, investment climate, competing crypto innovations pressure market valuations.

Monitoring cryptocurrency news, developer communities, social media, and fundamental business adoption metrics provides actionable signals. Investing based on sound fundamentals over hype or emotions increases the probability of long-term gains.

How Much to Allocate Towards Cryptocurrency

Given crypto’s extreme volatility, limit exposure to a moderate percentage of your overall investment portfolio based on risk tolerance:

  • Conservative Portfolio – 1-2% allocated to crypto allows upside exposure while minimizing overall volatility.
  • Moderate Portfolio – 2-5% crypto allocation provides a happy medium between risk and reward optimization.
  • Aggressive Portfolio – 5-10% crypto allocation offers robust upside potential albeit with concentrated risk.

Rebalance allocations at regular thresholds (10-25% above targets) by taking profit and reallocating to re-anchor to recommended levels. Avoid oversized bets that can devastate your portfolio.

Dollar Cost Averaging Into Crypto Positions

Lump sum investing into a volatile asset like crypto can lead to mistimed entries. Dollar cost averaging provides a more prudent entry approach.

With dollar cost averaging, you invest equal dollar amounts over regular intervals like $500 weekly rather than trying to perfectly time tops and bottoms. By sticking to the schedule, you mitigate against volatility and downside risk.

For example, investing $100 into Bitcoin the first of each month over 12 months would lower your average cost basis compared to investing a lump sum of $1200 all at once.

Cryptocurrency Taxes – What You Need to Know

Cryptocurrency profits and transactions face different tax rules compared to stocks and other assets:

  • Capital Gains Tax – Applies to crypto profits whenever you sell or trade cryptocurrency. Taxed at 0%, 15% or 20% depending on income.
  • Wash Sale Rule – Does not apply to crypto, so you can claim tax losses from short-term trades before repurchasing.
  • De Minimis Tax Exception – Personal transactions under $200 do not need to be reported for capital gains.
  • Tax Documentation – Transactions on exchanges should be documented for cost basis and capital gains calculations.

Work with a cryptocurrency savvy tax professional to properly file taxes on your crypto activity and minimize liability. Keep detailed records of all cryptocurrency purchases, sales, trades, and gifts.

Don’t Forget Cryptocurrency Risk Management

Given crypto’s propensity for violent boom and bust cycles, risk management is critical to preserve your capital. Prudent risk management techniques include:

  • Diversification – Don’t put your eggs all in one basket. Allocate across a mix of cryptocurrencies and asset classes.
  • Position Sizing – Size positions according to your account size so no single trade destroys you. 1-5% per position is prudent.
  • Stop Losses – Use stop market or stop limit orders to limit downside when momentum shifts against you.
  • Profit Taking – Periodically take profits on the way up to recoup initial investment and ride house money.
  • Mental Discipline – Don’t get caught up in hype cycles or FOMO buying at tops. Stick to your plan.

With cryptocurrencies liable to enter prolonged bear markets, focusing on effective risk management ensures you survive the volatility.

Conclusion – Choose the Best Cryptocurrencies to Invest in Today

Cryptocurrencies offer a compelling new digital asset class for investors seeking upside outside the traditional markets. However, crypto investing also comes with substantial volatility, risks and pitfalls. Carefully researching projects, managing allocations, employing dollar cost averaging, and applying sound risk management separates winners from losers.

Focus your efforts on high quality blockchain projects such as Bitcoin, Ethereum and Solana that demonstrate real-world staying power rather than gambling on speculative moonshots. The blockchain projects adding real utility and value have the best chances of emerging on top over the long-term.

Gianluca Lombardi

Gianluca is the editor-in-chief of this site. A finance graduate, he is an active trader who has tested all trading platforms and knows all their secrets. Technology is his passion; he spends much of his free time in the metaverse. Gianluca loves learning new things, researching, discussing and writing about technology, especially when it comes to cryptocurrency and blockchain technology.