Of all the assets you can invest in these days, cryptos are some of the most trendy. Bitcoin, for example, was crowned one of the best-performing assets of the 2010s, and several tokens have seen bull runs in recent times.
Thanks to this market performance and the emergence of investment vehicles like the new spot Bitcoin ETF, cryptos are in higher demand from investors.
As Michael writes, you might be considering the best crypto to buy today to meet your needs. The reality is that there are several types of cryptos you can buy, some of which are as follows:
‘Traditional’ Cryptos
While the crypto market is far from traditional, there is a class of tokens that represent your classic crypto concept. These tokens are tied to a specific blockchain that has some sort of utility behind it.
In the case of Bitcoin, it’s used to send and receive funds. In the case of XRP, it is for cross-border transactions. For Ether, its underlying blockchain supports many different blockchain projects.
These types of cryptos are tried and trusted in the industry because their demand is typically consistent. As long as the underlying utility of the token and/or blockchain remains, you’ll probably always make a return on your investment.
Gambling Cryptos
Believe it or not, it is possible to gamble with cryptocurrency, and there are many platforms set up to meet this need. Many of these platforms also tend to have dedicated cryptos that make the process of gambling much easier.
Whether you’re using a more traditional online casino or an anonymous casino, you might want to get your hands on the platform’s dedicated token.
On the one hand, it will allow you to access their products and services with more ease. Also, if the tokens’ value is tied to the performance of the casino, it could be an investment vehicle for you.
Meme Coins
At first glance, it is easy to laugh at meme coins, which are essentially cryptos based on popular culture and internet jokes. The truth is, however, that many meme coins have been consistent money-makers for years now, and even many new ones have a lot of potential.
Some meme coins have robust ecosystems and passionate communities behind them and this ensures that they will be valuable well into the future. Because so many of them find their way into the market, it would be a good idea to invest in the promising ones.
As with any token niche, you will have to do your research to avoid shitcoins.
AI Cryptos
AI is all the rage these days, and even the crypto space is feeling its impact. Several new cryptos have some sort of AI input, whether on the backend or as part of its larger project.
For example, some tokens are designed with AI within their smart contracts, so things like upgrade decisions are made by an AI program. Some AI projects simply have a blockchain angle to them, and the value of their token depends on the project’s performance.
These would be a good idea if you are especially interested in AI or simply want to hedge your bets.
Low-cap Cryptos
Low-cap cryptos refer to tokens that have a relatively low market cap. While many people choose cryptos with a higher market cap, these also have their benefits.
Specifically, some of them see significant market gains in a shorter amount of time, and because they fly under the radar, there is less competition for them.
Investing in low-cap cryptos will take a bit of research on your part, as not every low-cap crypto has a lot of potential. But if you’re looking to diversify your portfolio beyond just the headline-grabbing assets, these might be the way to go.
Presale Cryptos
Presale cryptos are less of a niche of crypto and more of an investment strategy. Before many cryptos were listed on exchanges, whether centralized or decentralized, they were offered for sale at a discounted price to a smaller group of investors.
The idea is that if the project generates a lot of buzz and has a high market value upon launch, those who bought it at a presale price can make a profit.
Beyond the financial aspect, investing in a presale can also be a way to connect with others within the ecosystem and enjoy non-monetary perks.
Conclusion
The crypto market has variety, if nothing else. There are thousands of tokens of all kinds at any given time, and any investor looking to diversify will be spoiled by choice.
Some of the types listed above are newer than others, but each one comes with its own benefits and downsides. Regardless of which you opt for, make sure to do your research beforehand and exercise caution.