Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
This guide tracks top market cap cryptocurrencies and explains why some investors see value in them.
Keep in mind there is no guaranteed way to pick the best crypto to buy now – instead, use this as general information to help make your own investment decisions.
This is not an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade or use any services.
What are the best cryptocurrencies to buy now?
Deciding on what to invest in will depend on what you're looking for.
Short-term investments are hard to pick. In addition to price data, consider using social media sentiment analysis and news to contextualise what price movements might mean and make an educated decision.
Keep in mind that most big run-ups in price are usually followed by a correction where the price comes back down after reaching a peak. So it is up to you to implement a strategy that allows you to exit with a profit before the market turns.
If you're investing over the long term, then you may want to consider "blue-chips" like
Bitcoin (BTC) and
Ethereum (ETH) which have a relatively well-tested track record. These coins have been adopted by financial institutions around the world and have utility beyond speculative investing.
The top 10 cryptocurrencies by market cap is filled with several of these potential long-term investments. Let's take a closer look at them and understand why they are a part of so many investment portfolios. Doing so may help you understand what qualities to look for in other crypto assets, and help you make better investment decisions.
Bitcoin (BTC), released in 2009, is the world's first cryptocurrency. It was created by a person or persons known only by the pseudonym Satoshi Nakamoto. It pioneered blockchain technology and gave birth to a multi-billion-dollar industry.
Bitcoin is a widely accepted form of currency that is not controlled by any government or corporation and can be sent to anyone, anywhere in the world.
Since its release, Bitcoin has witnessed exponential growth and outperformed every asset class over the past decade.
Why do people think BTC has value?
Although it was designed as a peer-to-peer trustless digital payment system, many now consider it more of a store of value than a means of payment. It has even been called 'digital gold' due to its limited supply of 21 million coins and the difficulty involved in creating new ones.
Ethereum (ETH) was crowdfunded in 2014 by a team of software engineers and is the most used blockchain for decentralised applications (dApps).
It introduced smart contracts via a custom programming language called Solidity. Smart contracts allow for the development of automated software and applications that use the Ethereum blockchain for security. You can think of Ethereum as a highly secure financial layer for the internet, with thousands of automated services, websites and applications that don't need staff to operate.
Ethereum currently struggles with slow transaction speeds compared to many of its competitors, although it has a robust development cycle that is set to tackle these issues.
Why do people think ETH has value?
Ether (ETH) is the native currency of the Ethereum blockchain and is used to pay for network transaction fees, known as gas. Each transaction burns (destroys) a portion of ETH permanently, reducing the supply over time.
ETH can be staked (locked up) in return for earning yield.
Binance Coin (BNB) is the native cryptocurrency of the BNB Chain and was created by the world's largest cryptocurrency exchange, Binance.
BNB utilises smart contracts and has an ecosystem of decentralised applications (dApps) built on its network. It operates in much the same way as competitor blockchain, Ethereum, and was designed to improve ETH's network throughput and reduce transaction fees. Despite faster transaction times, BNB Chain has been critiqued for sacrificing decentralisation to achieve this.
Why do people think BNB has value?
BNB is used to pay for transaction fees on the network, participate in Binance exclusive token releases and receive discounted trading fees on the exchange.
It is used to pay transaction fees on the BNB Chain, participate in Binance exclusive token releases and receive discounted trading fees on the exchange.
Users can stake BNB to earn regular yield, which also helps reduce the supply and theoretically increase demand.
XRP is one of the oldest cryptocurrencies, founded in 2012 by Ripple. Ripple originally designed XRP for use in cross-border payments.
Unlike blockchains such as Bitcoin and Ethereum, where new coins are generated at set intervals via mining or staking, XRP was pre-mined, with all 100 billion tokens being created at launch.
These pre-mined tokens were distributed to individuals and companies in large quantities. Questions and concerns have been raised regarding the true decentralisation of XRP, as a large majority of its tokens are held by just a few entities.
Why do people think XRP has value?
XRP is issued by Ripple which has designed several products that are intended to use XRP, which mainly involve cross-border payments. Some investors perceive the success of XRP as being linked to the success of Ripple.
Dogecoin (DOGE) was developed in 2013 by software developer Billy Markus to put some humour in the crypto space. Although it was originally released as a joke, Doge has become one of the world's most well-recognised and popular cryptocurrencies, ranking in the top 10 projects by total market cap in recent years.
Dogecoin operates similarly to Bitcoin and Litecoin as it was created as a clone of these open-source codebases, otherwise known as a fork. Key differences include its uncapped total supply and fast block production time; it is most commonly used as a payment network.
Why do people think DOGE has value?
DOGE experienced rapid growth throughout the 2021 bull cycle and was heavily promoted by crypto enthusiasts and eccentric billionaire Elon Musk. Musk's company, Tesla motor vehicles, began accepting DOGE as a form of payment in 2022, further increasing its recognition as a legitimate payment coin.
Cardano (ADA) is a layer-1 blockchain that, like Ethereum, supports smart contracts and operates under a proof-of-stake consensus.
This means developers can build and deploy decentralised applications (dApps) on top of Cardano's infrastructure.
Cardano was released in 2017 and rose to popularity almost instantly. Its instant trust and recognition by the crypto community can be partially attributed to its founder, Charles Hoskinson. Hoskinson is a notable figure in the crypto space and one of the core developers behind Ethereum.
While Cardano has a strong roadmap and team, it has fallen victim to development delays and is not considered as user-friendly as competitor networks such as Ethereum or Polkadot.
Why do people think ADA has value?
ADA is the native coin of the network which means it can be traded for other assets, used to pay for transaction fees and can be staked (locked up) in return for yield.
Solana (SOL) is a layer-1 blockchain released in 2020 by the Solana Foundation. Much like Ethereum, Solana supports smart contract functionality and the development of decentralised applications (dApps).
These projects include NFT marketplaces such as Magic Eden to DeFi trading platforms, including Raydium and Orca.
A large part of Solana's success as a layer-1 blockchain and direct competitor to Ethereum is its unique proof-of-history (PoH) consensus developed by Solana founder and lead developer Anatoly Yakovenko. PoH allows for blockchain scalability as well as fast and cost-efficient transactions.
In late 2022 Solana came under scrutiny following the declared bankruptcy of crypto exchange FTX, which was directly invested in and held a significant portion of the SOL circulating supply.
Why do people think SOL has value?
SOL is the native coin of the network which means it is used to pay for transaction fees (gas) and can be staked in return for yield. It is a common trading pair for many of the DeFi protocols or NFT marketplaces on the network.
Tron is a layer-1 blockchain based on a modified version of Ethereum. It is notable for its low transaction fees which first brought it to prominence in 2018.
It was founded by Justin Sun, who is a notable and sometimes controversial figure in the crypto space and was the former Chinese chief representative of XRP's parent company, Ripple.
In 2018 Justin Sun purchased BitTorrent and incorporated elements of the Tron blockchain into the popular uTorrent application, helping bolster the blockchain's success. Tron also hosts several hundred decentralised applications with a strong focus on gaming and entertainment.
Why do people think TRX has value?
TRX is used to pay for transactions on Tron and is used with many of the applications on the network. Large amounts must be held by nodes in order to keep the network secure and can be staked to earn yield.
Toncoin (TON) was launched in 2018, with development led by Telegram founder Pavel Durov.
Toncoin is intended to offer a blockchain with a fast and scalable enviornment for decentralized applications (dApps) and smart contracts. It is a Layer-1 blockchain that supports a network of 'shards' which is the cornerstone of its scalability. Each shard is capable of processing millions of transactions per second while maintaining compatibility and interoperability with the main chain.
This is different to Ethereum which is relatively slow on the Layer-1 and relies on Layer-2 chains to provide high speed and scale.
Why do people think TON has value?
Toncoin's native coin, TON, is used for paying for transactions and services on the network. A large amount of TON is required to run a validator node or a service provider node. Users may stake TON in return for rewards.
Polkadot (DOT) is the 16th largest cryptocurrency in the world by market cap, valued at $8,039,369,333. The current price of Polkadot is $8.8128, which is 2.147%
higher than yesterday. Prices have ranged between $8.8434 and $8.5068 over the past 24 hours.
Methodology: Our list is based on the top 10 cryptocurrencies by market capitalisation at the time of update, excluding stablecoins and liquid staking derivatives. Some of these coins have an established track record while others are more volatile with shorter histories.
This list should be used as a starting point for further research and doesn't represent an endorsement of any coin or project.
How are the cryptocurrency markets performing today?
The crypto market is up - the average price of the top 200 coins rose 0.82% over the last 24 hours.
Trading volume was also up and was 27% higher than the previous 7 days' average.
Volatility was below average at 0.63%, compared with the 30-day average of 0.77%. Higher volatility can make your profits or your losses larger if you decide to sell. (Data from Finder's crypto weather report, which updates at 4pm AEST every day.)
How to find the best cryptocurrency to invest in today
Finding the best cryptocurrencies to invest in relies on keeping on top of what's happening in the market each day. The tools in this guide are a good starting point, but should be used as just one part of your decision-making process. Here are some other ways to find the best cryptocurrencies to buy today:
News. Keeping up to date with the
latest news is a cornerstone of any investing strategy and helps make sense of movements in the market. You can follow dedicated outlets like CoinDesk and Cointelegraph for daily cryptocurrency reporting, or sign up to
crypto newsletters such as Bankless or The Defiant for a more curated experience.
Research reports. Knowing what the market is going to do before it does it is every investor's goal. You can get ahead by reading industry reports like Messari's annual review and forecast, Kraken's monthly analysis of on-chain data, and Finder's
price prediction surveys.
Sentiment analysis. Analysing how other investors are feeling about specific coins or events in the market can help you spot trends and decide whether to take action. Social media sentiment analysis can be an effective way of tracking what others are saying about a given topic. You can use the tools provided in this guide to do your own analysis, or explore using a paid service.
Technical analysis.Technical analysis refers to the tools and techniques used by traders to analyse price charts. You'll find most of the tools necessary for technical analysis on any major cryptocurrency exchange, or you can use a popular service like TradingView. Technical analysis has a steep learning curve and takes years to master, so if you're considering adding it to your repertoire then you might want to consider taking a
professional trading course.
Where to buy cryptocurrency now
Use our table to compare cryptocurrency exchanges on features like the number of coins available, payment methods and fees. Click Go to site if you're ready to create an account.
This is not an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade or use any services.
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Bottom line
No one can guarantee what the best cryptocurrency to buy is – it's up to you to research and monitor the markets, and form your own
trading plan.
We've written this guide to bring together some trends and give you a head start, but it's not investment advice.
If you're still new to cryptocurrency, then you can find plenty of guides on trading, coin profiles and more in our
cryptocurrency hub.
Frequently asked questions
What is the best cryptocurrency to invest in right now?
The best cryptocurrency to invest in right now, or any time, depends on your individual goals. By monitoring news and social media sentiment and doing some technical analysis, you may be able to spot trending coins in time to capitalise and make a profit.
What is the best cryptocurrency in the UK?
Cryptocurrency markets are global. This means that market data like price and volume is a snapshot of trading activity across the world, and the best cryptocurrency picks will generally stay the same no matter which country you live in.
It's worth noting that some countries have attempted to ban privacy coins from being traded on local exchanges. In the US, the SEC has opened investigations into individual coins such as Tether USDT and Ripple XRP.
What cryptocurrency will explode this year?
There's no way to guarantee which cryptocurrency will take off each day, or even each year.
Finder publishes a regular expert price survey looking at how top market cap coins might perform this year and beyond. Research firm Messari also releases an annual report that includes market trends for the coming year.
Which cryptocurrency is the most profitable right now?
Cryptocurrency trading profits are calculated based on your entry and exit price. The difference between these is the profit, or loss. This means determining which cryptocurrency is most profitable is nearly impossible, as it boils down to your individual trading circumstances.
Is it a good idea to buy cryptocurrency right now?
Cryptocurrency is widely considered a high-risk and volatile investment. You should seek personalised advice from a professional financial advisor before deciding whether or not to invest.
Be wary of social media influencers and peer pressure to buy, and make sure you fully understand the risks before you get started.
Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
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To make sure you get accurate and helpful information, this guide has been edited by Angus Kidman as part of our fact-checking process.
James Edwards was the global cryptocurrency editor at Finder. He coordinates a distributed team of journalists to help further Finder's mission of helping people make better financial decisions.
He has been using Bitcoin since 2013 and began working in the industry in 2017. He takes pride in boiling down complex topics into language his parents can understand.
His expertise has seen him called on to report at events such as TechCrunch Disrupt, CoinDesk Consensus and IBM Think and has coordinated a vast number of high-profile interviews with the industry's brightest minds.
He is a regular contributor to Nasdaq, The Street and is frequently called upon for market commentary in Australia and abroad. See full bio
Billy Endres was a cryptocurrency writer for Finder. His background in software development helped open the door to the world of decentralised technologies, financial markets and technical writing. See full bio
Billy's expertise
Billy has written 5 Finder guides across topics including:
Web3 and decentralised technologies
Front-end development
Cryptocurrency futures trading and technical analysis
This guide provides step-by-step instructions on how to buy Arbitrum, lists some exchanges where you can get it and provides daily price data on (ARB).
Learn how to buy Litecoin in the UK with our simple step-by-step guide and tips on what to know before you get started.
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