To find the most promising cryptocurrencies, there is no secret: you must do your own research. For this, we advise you to go to Binance Research. This site provides you with excellent analytical material as well as comprehensive reports on promising projects. You can get there by clicking here.
However, we can give you some food for thought. Indeed, there are some important criteria to consider when looking for a promising cryptocurrency. In his famous book on investing, Margin of safety (1991), the American billionaire investor Seth Klarman explains that “in the short term, supply and demand are enough to determine prices in the market”. If we apply this rule to cryptocurrencies, then the most promising cryptocurrencies are the ones that will be in high demand tomorrow.
It is then necessary to question the criteria for applying for a crypto-currency. For this, it is necessary to ask what will be the function of the token and how it will be used. To this end, it may be relevant to focus on “utility tokens”. If a token is useful, there is a greater chance that demand for that token will increase.
Bitcoin, digital gold
Bitcoin is considered by some to be digital gold due to its scarcity and the difficulty of creating new Bitcoin. Indeed there can only be, at most, 21 million Bitcoins. The more years pass, the more difficult it becomes to mine. Bitcoin mining is the process by which people use their computers to participate in the Bitcoin network as a validator of transactions.
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Bitcoin uses a system called Proof Of Work. This means that miners must prove that they have put in the effort in processing transactions to be rewarded. This effort includes the time and energy required to operate computer hardware and solve complex equations. This scarcity and difficulty of mining means that the price of Bitcoin is determined solely by demand. This demand increases as awareness of this asset grows and confidence in the underlying computer protocol grows.
Thus, Bitcoin saw its price rise from $0.00001 in 2009 (equivalent to the cost of generating electricity needed to produce it) to over $60,000 in October 2024. All of these reasons make Bitcoin a very attractive investment, and a cryptocurrency to have in your portfolio if you consider yourself a balanced investor.
Ether, a utility token with real adoption
One of the best-known projects in the crypto-sphere is the Ethereum project. Ethereum is the first software platform to have enabled the development of decentralized applications. Decentralized applications are the basis of Web 3.0. Unlike the second generation internet where data is mostly stored on centralized servers, Web 3.0 relies on decentralization. This decentralization allows individuals to exchange information and value without any intermediary. It is therefore a safe bet on the mass adoption of this breakthrough innovation. To deploy applications on the Ethereum network, it is necessary to use Ether (ETH), the native cryptocurrency of the platform. This is because Ethereum network fees can only be paid with this token.
It is therefore possible to say that the more people there are who use this network, the more the demand for its token increases. And of course the more the demand increases, the more the price of Ether increases. Thus, the return on investment for this asset is directly linked to the use of the underlying technology. In view of the possibilities offered by this network, we can therefore expect to see the price of Ether increase in the future.
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In this sense, we can give you a second example of a promising cryptocurrency in terms of its usefulness. Perhaps you have already heard of the Solana project and its native cryptocurrency, the SOL.
Solana, one of the most promising cryptocurrencies
Solana has the ambition to offer the fastest blockchain in the world. Thanks to a technological innovation called Proof Of History, the Solana blockchain makes it possible to manage 50,000 transactions per second, which is 10 times faster than the Visa network, for example.
The SOL, the project token, is used to pay transaction fees on this blockchain. The technological innovation offered by Solana and the usefulness of the token are two factors that can explain the enthusiasm for this cryptocurrency and therefore the increase in demand.
The SOL thus saw its price increase from $14 to more than $240 in the space of only 8 months during the year 2024, an increase of 1635%. The “buy and hold” strategy applied to this specific case means that by investing €100 and keeping this crypto-currency for 8 months, it was possible to realize a capital gain of €1620 (x16).
Do you think this protocol has a future? Consider reading our tutorial to understand how to buy and trade Solana. Absolutely all the information you need to know is available in this one.
Binance, the platform to buy promising (and recent) cryptocurrencies
To search for promising cryptocurrencies based on their usefulness, you can go to Binance by clicking here. Binance is one of the most widely used trading platforms today. Why ? Well mainly because a lot of cryptocurrencies are available there.
The first thing to do when you go to Binance is to register. This procedure is similar to opening an online bank account. You must start by creating an account and then carry out a procedure called KYC to be able to validate it. The KYC (Know Your Customer) procedure is the verification of your identity carried out by the platform. To satisfy it, you just need to send an identity document and proof of address. Once your account is confirmed, you can search for the most promising cryptocurrencies using the analysis tools provided by the platform.