Benzinga’s choice for the best altcoin to invest in this April is Ethereum. You can get it on notable exchanges such as eToro, Coinbase and Kraken.
While Bitcoin (BTC) has been a prominent cryptocurrency in recent years, several other projects have surpassed it in performance and show potential for future success. These alternative tokens, known as altcoins, are often at the forefront of crypto and blockchain innovation, exploring new possibilities and applications. Many of these tokens have taken off in 2024, showing that there could be a strong future for many tokens outside of Bitcoin.
Best Altcoins to Buy Now
1. Ethereum (ETH)
eth
Ethereum$3240.75*
*prices delayed up to 10 minutes+1.23%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$3,500
Market cap: ~$430 billion
Ethereum, the largest altcoin, is known for its ability to allow access to decentralized finance (DeFi) applications. These applications cover a ton of different projects, ranging from popular meme coins to the top up-and-coming artificial intelligence (AI) startups. The chain has a developer-friendly environment and a strong smart contracts system that makes it a great place to build new projects. In 2022, the token greatly increased efficiency and environmental friendliness by switching from a proof-of-work to a proof-of-stake system. In 2024, the chain underwent upgrades that also helped increase speeds and lower costs. In 2024, there is also potential for spot Ethereum exchange-traded funds (ETFs), which could provide a further catalyst.
2. Solana (SOL)
sol
Solana$150.49*
*prices delayed up to 10 minutes+4.67%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$190
Market cap: ~$85 billion
In late 2022 and early 2023, many thought that Solana’s time as a crypto project was over. This was the result of the collapse of FTX Trading Ltd., which had invested millions of dollars into SOL. Within a year of FTX going insolvent, SOL lost 96% of its value. However, the chain has seen a huge comeback in 2023 and 2024. The token is nearing all-time highs and many have a renewed optimism in the project. This is largely because of the numerous projects that launched on Solana in 2023 and 2024, most notably a handful of new prominent meme coins such as Bonk (BONK) and dogwifhat (WIF).
3. Dogecoin (DOGE)
doge
Dogecoin$0.162412*
*prices delayed up to 10 minutes+1.46%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$0.20
Market cap: ~$25 billion
Dogecoin is the oldest meme coin and has stayed around long enough to cement itself as the top meme coin. Though its primary use is as a form of payment and to facilitate transactions, a strong community of investors has allowed the token to continue appreciating with the rest of the crypto market. Additionally, a handful of rumors surrounding DOGE and billionaire Elon Musk could also be beneficial for the token. For example, Musk recently said that he would take a look at allowing investors to purchase a Tesla with DOGE, and his social media company X is securing payment licenses in many states.
4. Binance Coin (BNB)
bnb
BNB$603.28*
*prices delayed up to 10 minutes+0.21%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$600
Market cap: ~$90 billion
Binance Coin, the token that helps facilitate transactions on the Binance exchange, is another interesting altcoin. The token took a bit of a hit in late 2023 when former CEO Changpeng Zhao pled guilty to money laundering charges and resigned from his role as chief executive. This blow caused many to wonder whether Binance could continue as a company. However, new leadership stepped up and the exchange has continued operations. The token could also benefit from the list of new altcoins that are going up on the exchange daily and bringing in new users. This makes the platform a solid pick for those looking to get in on the latest market trends.
5. Avalanche (AVAX)
Price: ~$60
Market cap: ~$25 billion
Focused on low costs and high speeds, Avalanche is hoping to solve some of the major issues that the other blockchains are facing. In particular, Avalanche is creating its own niche within the token exchange and financial trading markets. Many of the projects that it hosts bring staking, trading and yield farming to AVAX users. As crypto trading picks up in terms of popularity, AVAX could benefit from new users entering the market and choosing Avalanche. Additionally, if Avalanche can start attracting projects outside of trading and exchanges, it could broaden the use cases and bring in even more users.
6. Chainlink (LINK)
Price: ~$20
Market cap: ~$11 billion
One of the larger potential use cases for blockchain is in data storage and processing. In particular, many are looking for a way to incorporate off-chain data (data we experience daily) into the immutable nature of blockchain. Chainlink is hoping to do this by creating a place for developers to create smart contracts using data from outside of the blockchain. This opens up the possibilities for blockchain beyond just transactions and payments. For example, Chainlink could use supply chain data to help companies optimize their logistics. Each data point is stored on the blockchain and cannot be changed, making for a much more organized and efficient data solution.
7. Uniswap (UNI)
uni
Uniswap$14.81*
*prices delayed up to 10 minutes-6.42%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$13
Market cap: ~$7.5 billion
With altcoins on the rise, many are looking for an all-in-one solution to finding and buying the latest projects. Uniswap makes this possible by connecting buyers and sellers through their decentralized exchange platform. Uniswap allows anyone with a wallet to buy, sell, swap and stake nearly any cryptocurrency on the market. It uses a liquidity pool system to make sure it is easy to get in and out of investments at a good price. Additionally, the exchange also offers non-fungible tokens (NFTs), making it a top pick for any DeFi investor. UNI is the token that helps the exchange run by providing liquidity and governance.
8. Render (RNDR)
rndr
Render$9.05*
*prices delayed up to 10 minutes+12.0%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Price: ~$11
Market cap: ~$4.5 billion
One of the largest issues facing tech companies is a shortage of semiconductors. This means that they can either buy their own computational hardware for a premium or outsource the computing tasks to another party. Render is hoping to assist firms with the second option. It creates a marketplace for cloud computing, allowing anyone with computing power to sell it to anyone in need of computing power. This system allows firms to access computing resources on demand and allows those with computing power to sell it when they are not using it. RNDR powers the marketplace, helping users transact their computing power.
9. NEAR Protocol (NEAR)
Price: ~$7.50
Market cap: ~$8 billion
Because blockchains process a huge amount of transactions every day, they rely heavily on computing power, usually sourced from participants in the specific blockchain. This can put lots of strain on the project during peak load times, resulting in higher fees. NEAR saw this issue and decided to create its own blockchain, using cloud computing to process transactions instead of its own computational power. This can help increase speeds and scalability. Additionally, the project is extremely easy to use from a developer’s perspective, with lots of open-source code available to help build out projects. If it can continue to bring in new use cases, the token could continue to perform well.
10. Optimism (OP)
Price: ~$4
Market cap: ~$4 billion
Optimism is a Layer-2 solution that operates in conjunction with Ethereum. The goal of the project is to lower the transaction costs associated with accessing decentralized applications (dApps) on the Ethereum chain. It works by using Optimism rollups, which help to store transactions and then process them when fees are low. In practice, Optimism will execute a transaction and then store it for a seven-day window, whereby they can send it to Ethereum for processing when fees are low. The project has shown promise, and Coinbase is using the application for its Layer-2, called Base. This could increase the amount of use for the token and increase the price.
What Is an Altcoin?
Any token that is not Bitcoin is called an altcoin. Bitcoin dominates the crypto market, so anything that is not Bitcoin is considered to be different.
There is some debate about whether or not Ethereum is an altcoin because a lot of projects stem from the chain. However, for this article, Benzinga considers altcoins to be tokens that are not Bitcoin.
Some popular examples are DOGE, SOL, USDC and UNI. There are over 10,000 different altcoins.
Types of Altcoins
The 10,000-plus altcoins can be classified into several categories. Take a look at some examples:
- Stablecoins: Stablecoins are pegged to another currency, usually the U.S. dollar. They exist to provide stability in the world of crypto and are usually backed by another asset. Some examples are USDC, USDT and MIM.
- Payment token: Payment tokens are used to facilitate transactions among users on the blockchain. While most tokens can be used for this purpose, some directly specialize in it, such as BTC and DOGE.
- Security token: A security token is a relatively new concept that is not available to all investors. However, it is a process in which a firm or an individual can sell tokens that represent ownership and are regulated by the Securities and Exchange Commission (SEC).
- Utility token: Utility tokens have a fairly broad definition, as they are tokens that can be used to support functions on the blockchain. Some examples can be paying fees, participating in decision-making processes and staking.
- Meme coins: These tokens are inspired by internet memes. Some of the more popular meme coins, such as DOGE and SHIB, are based on dog memes. Most meme coins do not serve a specific purpose and receive value from strong communities.
- Mining-based coins: One way that blockchains can process transactions is through a process called mining. This is when validators use powerful computers to complete math problems, and the first computer to answer is allowed to verify transactions in exchange for a reward. Some examples are Bitcoin, Monero and Kaspa.
Pros and Cons of Altcoins
Take a look at some pros and cons.
Pros
- Can improve upon the model created by Bitcoin
- Large variety of tokens
- Access to DeFi applications
- Potential for large price increases
Cons
- Lack of market share
- Not available on all exchanges
- Can lose value quickly
How to Invest in Altcoins
While no single site offers all 10,000-plus altcoins, some crypto trading platforms offer more altcoins than others. For altcoin investing, Kraken and Coinbase are great options. They are well-known for their low fees, enhanced security and ease of use.
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
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Are Altcoin Investments Subject to Taxation?
Yes, altcoins are subject to taxation. The IRS treats cryptocurrency as a form of property. Because of this, you are required to pay capital gains tax on sales of crypto. Crypto exchanges send Form 1099s, which report capital gains and losses for the year. You can use this form to report your taxes on crypto transactions.
Is It Better to Buy Bitcoin or Altcoins?
Because Bitcoin is the largest token, it can often drive the rest of the crypto market. Some of the price movements in altcoins can be attributed to moves in Bitcoin. However, individual events also have a strong influence on altcoins (such as Musk posting about DOGE on social media). This can cause altcoins to be much more idiosyncratic and perhaps more risky, especially for smaller projects. However, higher risk can sometimes lead to higher rewards.
The decision to invest in Bitcoin versus altcoins comes down to risk tolerance. If you are more willing to take a risk on a single project, altcoins could be a good choice.
Altcoins: Lots of Options, Lots of Potential
You can find tons of options for altcoins, both in the number of altcoins and the different types. While this can make the selection process for investing more difficult, it can also lead to more growth opportunities. This list is far from all-inclusive. Do your research before deciding on an altcoin to invest in.
Frequently Asked Questions
What's the best altcoin to invest in right now?
While it is impossible to determine the best altcoin, some of the more popular picks are ETH, DOGE, SOL and BNB.
Which altcoins are most promising?
Some of the best altcoins with potential catalysts in 2024 are ETH and SOL.
Which coin will reach $1 in 2024?
Some tokens below $1 are DOGE, TRX, ADA, and XRP.
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.