Cryptocurrency Insider's Guide: Top 06 coins to follow in 2024

Crypto has been a hot topic ever since it was launched. We all want to invest in cryptocurrency, but lack of experience and knowledge defy us. Before we get into any technicalities of crypto, let us understand why there is so much hype around them.

It all started with a pseudonymous name, “Satoshi Nakamoto”. He was the one who presented the idea of a digital currency in 2009. The basic idea of having a digital currency is beyond the control of any government, country or central bank.

The first digital currency was BITCOIN, created by the pseudonymous “Satoshi Nakamoto”. It has undergone growth, de-growth, market crashes and whatnot. Anyhow, we are in 2024, and crypto is undoubtedly now considered one of the stable assets for investment.

No worries if you are a newbie or a Cryptocurrency enthusiast, we will not let you miss the next big thing. In this blog, we will discuss the TOP 06 Crypto’s which are worth time and money both. All the cryptos has some unique feature over others. Which one you choose to invest is totally a personal choice. We have chosen to write on these cryptos considering parameters like;

Market Capitalization and Liquidity
Security and Technology
Tokenization and Supply
Performance History

Top 07 Cryptocurrency to put on your watchlist in 2024

BITCOIN: The very first cryptocurrency has broken records ever since it was launched in 2009. Still holding the number one position on the charts. Bitcoin has the largest market capitalization with excellent liquidity. It seems Bitcoin will maintain its top position for years unless another winner arises from the dark end of the street. Technically, Bitcoin is very sound and uses blockchain technology. In short, blockchain technology is a method of storing financial transactions in a way that cannot be modified, hacked, or manipulated.

Pros

Higher market capitalization: It gives a positive impact and increases its acceptance.
Easily accessible through various online platforms.
Sound technology: Robust block chain technology to secure transaction.
User identity is always protected. Transaction are recorded on a public ledger which is impossible to alter.
Cross-border transaction settlement is fast and low cost.

Cons

The price volatility poses an investment opportunity and risk at the same time.
Not under the purview of any govt. or regulator. transaction lacks legal protection.
No universal acceptance for payment.
Transaction once done is irreversible.
Energy consumption for mining of bitcoin consumes high amount of electricity/energy, which raises environmental impact.

2. ETHEREUM: This one is the second coin ruling the charts. Initially launched in the year 2013 by Vitalik Buterin. It works on the decentralized blockchain with smart contract functionality. Meaning it was basically designed to be a decentralized platform for the development of DApps. Automatic smart contracts are created, enabling all the terms and conditions to be written in the form of code. Developer can use the Ethereum platform to create a range of Dapps, apart from simple currency transfers.

Pros

Smart Contracts and Dapps makes it unique.
Enabling customization for developers has led to the existence of Decentralized Finance (DeFi) platforms and Non-Fungible Token (NFT) marketplaces.
Ethereum has an extensive community and developers’ support pushing for continuous growth and improvement.
Ether, the crypto for Ethereum acts as incentive for executing contacts. It boosts the users to use the platform for transaction and developments.

Cons

At times, performance issues arise due to network congestion, leading to delays in the settlements of transactions.
Ethereum based projects (Dapps) may attract legal ambiguity as they do not fall under any regulations.
Ethereum is based on a proof of work mechanism and has significant energy consumption issues like Bitcoin. So, they are shifting Ethereum 2.0 to the proof of stake model to lower the power consumption impact.
Smart Contracts are vulnerable to hacking, leading into significant financial loss.

3. SOLANA: This is another blockchain platform similar to Ethereum, designed for decentralized applications (DApps). Initially founded as an open-source project in 2017. Its native crypto is SOL, used for transactions. It is based on two mechanisms: proof-of-history (PoH) and proof-of-stake (PoS).

Pros

Proof-of-history (PoH): This algorithm maintains a record of transactions, including their respective time and date before they are added to a block. This makes it easier to retrieve records in real-time.
Proof-of-stake (PoS): PoS is used in combination with the PoH mechanism. The validators can verify the transaction based on the SOL (coins) they put on stake. This is like double-checking the records in the process.
Solana is relatively faster than its counterparts as it can process multiple transaction simultaneously.
The settlement fess is low in Solana.
It allows voting from holders for future upgrades.
Solana allows for easy transfer of blocks and assets among various blockchain networks, showcasing its high level of interoperability.

Cons

Solana based projects (Dapps) may attract legal ambiguity as they do not fall under any regulations.
Solana is prone to centralization risk due to its requirement of high running costs. Thus, the control of the network lies majorly in the hands of top investors.
Security concerns arise due to its overall architecture and network control in the hands of few.
As Solana is relatively new, trust issues are there for the investors.
No Ethereum compatibility is a drawback for some participants.
Solanas’s unique consensus algorithm has faced issues in the past. A concrete resolution is yet to be seen.
Network outages have been frequent in the past, resulting in automated spam transactions.

4. CARDANO: This one is another blockchain platform based on the concept of Ethereum. However, it is designed with more advanced features and flexibility. Like other platforms, this also allows the development of DApps and smart contracts. It’s native cryptocurrency is ADA. Cardano pitches itself as the most environmentally sustainable blockchain platform.

Pros

Cardano uses a Proof of Stake consensus mechanism called Ouroboros. The validators can verify the transaction based on the ADA (coins) they put on stake.
Cardano is designed to handle large numbers of transactions within a fraction of a second. It is highly scalable in handling transactions per second.
Cardano is much more energy and cost-efficient as compared to Ethereum.
Cardano is built on highly secure and reliable Haskell Programming Language.

Cons

While Cardano is a decentralized platform, however, some critics claim it to be centralized due to its favoritism. Early investors control the majority of the coin supply.
As Cardano is relatively new, trust issues are there for the investors.
Cardano’s development is majorly based on research, leading to a slower development pace than other blockchain projects.
At times of network congestion, transactions are put on hold without any guarantee that it has reached the destined blockchain.

5. POLYGON MATIC: Polygon Matic was formerly known as Matic Network. This architecture is used for building and connecting Ethereum-compatible blockchain networks. What makes it different from others is that it is highly scalable and interoperable for building decentralized applications (dApps). The best part for developers is that it allows them to build and deploy Ethereum-compatible dApps on the Polygon network.

Pros

Ethereum had congestion issues in the past. Polygon solves the problem as it has improved scalability due to Layer 2 scaling solutions and a separate PoS blockchain.
Due to layer 2 scaling , it can easily incorporate large users and transactions effortlessly.
Seamless transfer of contracts between Ethereum and Polygon.
Community and developer support system is strong. Also marketing support to projects.

Cons

Polygon’s existence is largely dependent on Ethereum.
With the transition of Ethereum 2.0, it is believed that Polygon development will be largely affected.
As Polygon is also based on PoS based system, their common issue is favoritism. Early investors control the majority of the coin supply.
High competition from counterparts based on same architecture.

6. BINANCE: In Dec 2023, India banned many crypto exchanges, including Binance. Binance is a cryptocurrency which cannot be ignored, even if it’s prohibited in INDIA. Even if we exclude India, Its market capitalization is enormous. Therefore, it is advised to investors from INDIA to refrain from investing in any exchange which is directly on the regulator’s hit list.

Are Cryptocurrency legal in INDIA?

As per RBI, crypto is not considered a legal tender. As per their circular in 2017, RBI advised investors to refrain from investing or holding cryptocurrency. However, in 2020, a landmark judgment came from the Supreme Court of INDIA, which quashed the RBI circular, stating it was unconstitutional. Since then, investment and holding crypto has been allowed in INDIA.

Is Cryptocurrency income taxable in INDIA?

As per Income tax, the income from investment/holding of cryptocurrencies is subject to 30% (plus 4% cess). An additional TDS of 1% is levied as per section 194S if the transaction exceeds INR 50,000/-.

Conclusion

All the coins listed above may have a plus or minus and may differ as per personal choices and opinions. The list may not seem exhaustive, however I have chosen the coins based on their current market reputation. I am always open to discuss more on this. Feel free to connect through contact us page.

Disclaimer

Cryptocurrency investments carry risks, and it’s crucial to make informed decisions based on their own financial situation and research. This blog on crypto is for informational purposes only. Please seek personalized investment advice from investment advisors.

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