Benzinga’s top cryptocurrency picks for January 2025 include Bitcoin, Ethereum and Solana, which are available on exchanges like Coinbase and Kraken.
The cryptocurrency market has experienced remarkable growth in 2024, characterized by increased institutional adoption and rising prices, largely driven by key events such as the approval of spot Bitcoin ETFs and Ethereum ETFs earlier in the year. These developments have not only bolstered the legitimacy of cryptocurrencies among traditional investors but have also attracted new capital, creating a vibrant market environment. The excitement has been further fueled by significant events like the Bitcoin halving and the resurgence of meme coins, igniting investor enthusiasm. Despite this impressive performance, many experts feel there remains considerable upside potential for the rest of the year 2025. As such, crypto investors are encouraged to stay informed about market trends and to navigate their investment strategies wisely to capitalize on future opportunities..
Let’s look at some of the best crypto to invest in 2025.
- Top Cryptocurrencies to Buy Now
- 1. Bitcoin (BTC)
- 2. Ethereum (ETH)
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Top Cryptocurrencies to Buy Now
The landscape of best cryptocurrencies evolves as the crypto market continually changes. However, here are some of the best crypto coins to buy now.
1. Bitcoin (BTC)
- Price: ~$80,600
- Market capitalization: ~$1.59 trillion
- Year-over-year return: ~116%
Bitcoin has been the leader in the cryptocurrency sector, setting the stage for all other projects. Acting as a form of payment system and a store of value, it has performed strongly in 2024, reaching new all-time highs (ATHs) and surpassing previous records set in 2021. Market sentiment on Bitcoin remains predominantly bullish, with many anticipating the price rally will continue. In 2024, primary catalysts included approving spot exchange-traded funds (ETFs) and the bitcoin halving in late April. Bitcoin ETFs have attracted new investors, while the halving is expected to decrease the daily token supply.
2. Ethereum (ETH)
- Price: ~$3,100
- Market capitalization: ~$381 billion
- Year-over-year return: ~52%
Ethereum is the most prominent blockchain, providing users access to decentralized finance (DeFi) applications. It accommodates various projects, from AI startups to leading meme coins. Its robust development platform and easily usable smart contract system make this possible. It is a versatile chain, allowing users to access all aspects of Web3 easily. The chain switched from a proof-of-work (PoW) system to a more efficient proof-of-stake (PoS) system in 2022. In 2024, some significant events have been upgrades to the chain that increased speeds and lowered costs, as well as the approval of spot ETH ETFs.
3. Solana (SOL)
- Price: ~$209
- Market capitalization: ~$98 billion
- Year-over-year return: ~283%
Solana had a rough start in 2023 because Sam Bankman-Fried and FTX were some of the largest investors in the project. This resulted in the token losing over 96% of its value within 11 months of the FTX collapse. At the time, many thought that SOL was a dead project. However, 2023 and 2024 have seen a revival of the project. Many new tokens have started on Solana chain recently. These crypto projects include staking protocols, storage, AI and many others. However, meme coins have been one of the driving forces behind Solana’s comeback. These new tokens have skyrocketed in popularity, causing crypto investors to buy and swap SOL for these new tokens.
4. Ripple (XRP)
- Price: ~$0.58
- Market capitalization: ~$33 billion
- Year-over-year return: ~-11%
Ripple is a centralized company hoping to bring crypto's possibilities to the banking sector. Its business model uses its native token, XRP, to facilitate transactions. Ripple can use the XRP token as an intermediary between other assets. For example, BTC and ETH are not directly interchangeable. However, Ripple can convert BTC to XRP and then convert the XRP into ETH. This concept can be applied to any currency swap or transaction a bank may have to make daily. XRP is particularly useful in this case because it is fast and has transaction fees that are a tiny fraction of a cent. If financial institutions start using XRP on a larger scale, the price could increase. Additionally, discussions of a spot XRP ETF have surfaced. If this were to happen, it could increase the token's price.
5. Dogecoin (DOGE)
- Price: ~$0.27
- Market capitalization: ~$39 billion
- Year-over-year return: ~260%
Dogecoin has been able to stick around in the top 20 tokens by market capitalization for some time and has gone up with the rest of the market in 2024. Additionally, new use cases in the future could send the token even higher. Elon Musk said he would consider allowing users to buy a Tesla car with DOGE, enabling people to buy Tesla merch with DOGE. If this were to happen, it could increase demand for the token and send the price higher. DOGE has also held its spot as the top meme coin in past bull and bear markets, performing particularly well in 2024.
6. Avalanche (AVAX)
- Price: ~$31
- Market capitalization: ~$12 billion
- Year-over-year return: ~118%
Avalanche is a chain focused on high speeds and low costs. It hopes to make interacting with decentralized finance as straightforward and inexpensive as possible. The project saw relatively low volatility in 2023 but has performed exceptionally well in 2024, making it one of the best cryptocurrency to buy now. Its success has resulted from new projects making a home on the chain. Most of these projects revolve around crypto exchanges and trading. For example, one of the most popular protocols is Trader Joe, which allows users to trade, stake, yield farm and provide liquidity for a handful of Avalanche-based projects. If Avalanche can attract a more diverse range of projects, it could continue its upward momentum throughout the remainder of the year and into 2025.
7. Quantum Resistant Ledger (QRL)
- Price: ~$0.27
- Market capitalization: ~$18 million
- Year-over-year return: ~151%
One of the defining characteristics of computing is exponential growth. Computers are becoming increasingly faster and take up less space, and advances in quantum computing could pose a risk to some of the larger blockchains. For instance, a quantum computer could overthrow the current mining system on bitcoin through a 51% attack, or the computer could bypass the current cryptographic protocols and access anyone’s wallet address. While these may seem like distant threats, researchers already use quantum computing in various contexts. Quantum Resistant Ledger (QRL) is looking to solve this issue by creating a new security protocol called the eXtended Merkle Tree Signature Scheme (XMSS). The blockchain is designed to resist quantum computing attacks, potentially allowing it to survive if other blockchains go down from quantum attacks.
8. Shiba Inu (SHIB)
- Price: ~$0.000025
- Market capitalization: ~$15 billion
- Year-over-year return: ~199%
SHIB is among the few meme coins that survived the 2022 bear market. The project is a meme coin based on the Shiba Inu dog breed, akin to the DOGE meme. The project has spent several years building an ecosystem that gives the token utility beyond just a meme coin. For example, it has created NFT projects, a layer 2 blockchain called Shibarium, a separate token for staking rewards and a biweekly magazine. These new uses have helped the token survive the bear market and perform well in the current market. The token has sustained a strong community over the years, allowing it to cement itself as a meme coin worth the hype and one of the best crypto to buy right now.
9. NEAR Protocol (NEAR)
- Price: ~$4.64
- Market capitalization: ~$5 billion
- Year-over-year return: ~198%
NEAR hopes to solve one of the most significant issues many see with Ethereum and other chains. These chains require vast computing power to operate and to provide services to their users. This requirement puts lots of strain on the chain, resulting in slow speeds and high costs. NEAR utilizes sharding and a novel consensus mechanism called Nightshade to improve speeds and scalability. Developers can benefit from others’ projects, as everything on the platform is open source. These are optimal conditions for developers, as it is much easier to make faster applications. If NEAR can attract more projects that lead to more use cases, the price has room to keep increasing.
10. Binance Coin (BNB)
- Price: ~$623
- Market capitalization: ~$89 billion
- Year-over-year return: ~148%
Binance Coin was hit in late 2023 when its former CEO, Changpeng Zhao (CZ), was allegedly involved in money laundering charges. Many wondered if Binance could continue as a company, as the charges were severe. However, the dust has settled from the incident, and BNB has been on a solid upward trajectory in 2024. This is mainly driven by Binance’s exchange listing new tokens, which makes the platform attractive to investors looking to stay ahead of the latest crypto trends and purchase the hottest tokens as soon as they are available. If Binance can continue to move forward from the scandal with CZ and bring in new users with interesting new tokens, there is room for the price to continue increasing.
What Is Cryptocurrency and How Does It Work?
Cryptocurrency is a digital or virtual currency. It uses cryptography for security. This makes it difficult to counterfeit or double-spend. Unlike traditional currencies, cryptocurrencies are not issued by governments. They operate on decentralized networks that use blockchain technology. A blockchain is a distributed ledger. It records all transactions across many computers. This provides transparency and security. The decentralized nature of cryptocurrencies eliminates the need for intermediaries like banks. This allows for fast and secure peer-to-peer transactions. Often, these transactions have lower fees than traditional banking systems.
When a transaction is initiated, it is sent to the network. This network validates the transaction through a process called mining. Miners use powerful computers to solve complex mathematical problems. When a problem is solved, the transaction can be added to the blockchain. This process ensures the integrity of the transaction. It also introduces new units of currency into circulation, as seen with Bitcoin. Each transaction is grouped with others into a block. Once verified, the block is added to the chain of previous transactions. This creates a complete history of activity that can be audited by all network participants.
Cryptocurrency is based on the principles of scarcity, security, and transparency. Many cryptocurrencies have a set supply limit. This scarcity is similar to precious metals like gold and can increase value when demand rises. Transactions are recorded on a public blockchain, ensuring transparency. This allows for traceability while keeping user privacy intact. Users engage with the system via digital wallets, where they store their cryptocurrencies. They can exchange these currencies through various platforms. This creates a dynamic marketplace that operates 24/7. Overall, cryptocurrencies provide an innovative alternative to traditional financial systems. They are reshaping the future of transactions and value storage.
How to Invest in Cryptocurrency
Investing in cryptocurrency can be both lucrative and unpredictable, making it important to have a good grasp of the market and its trends. This guide will outline essential strategies and tips to assist you in managing cryptocurrency investments successfully.
Educate Yourself
When considering investing in cryptocurrency, it's important to learn about it first. Take time to research the technology, like blockchain, and get to know essential terms and concepts. There are many online resources, including courses, articles, and videos, available for cryptocurrency education.
Choose a Reliable Exchange
Choose a reliable cryptocurrency exchange platform to buy, sell, and trade cryptocurrencies. It's important to find exchanges that offer a user-friendly interface, strong security measures, and responsive customer support. Some well-known options are Coinbase, Binance, and Kraken.
Create a Secure Wallet
Once you've bought cryptocurrency, make sure to keep it safe. Select a wallet that fits your requirements—choices range from hardware wallets (such as Ledger or Trezor) to software wallets (available as desktop or mobile applications) and online wallets. It's essential to apply strong security practices, like enabling two-factor authentication, for extra protection.
Start Small and Diversify
If you're new to this, it's a good idea to start with a small amount of money that you can afford to lose. Look into various cryptocurrencies instead of putting all your money into one. Spreading out your investments can reduce the risks linked to unpredictable markets.
Monitor the Market and Stay Informed
Monitor cryptocurrency market trends, news, and developments to make informed choices about buying, holding, or selling your investments. Use market analysis tools and follow reliable cryptocurrency news sources to stay informed about market changes and regulations.
How to Report Crypto on Taxes
The IRS treats cryptocurrency as a form of property. Because of this, you must pay capital gains tax on crypto sales. Cryptocurrency 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.
The forms are in your account information and are easily accessible. Additionally, they are not too complicated and are easy to report when you file your taxes.
What Are Cryptocurrency Exchange-Traded Funds (ETFs)?
In January 2024, the U.S. Securities and Exchange Commission (SEC) approved a handful of spot ETFs to begin trading. These investment instruments allow equity investors to access a variety of underlying assets. They work by the sponsoring firm acquiring a pool of digital assets (in this case, Bitcoin) and then packaging them into shares, which are then distributed to investors. For the Bitcoin ETFs, the sponsors bought lots of Bitcoins and then packaged them into shares, which traders can buy and sell.
Currently, only Bitcoin and Ethereum ETFs are trading. The SEC approved spot Bitcoin ETFs in January 2024 and Ethereum ETFs in May 2024. The landscape for Solana ETFs in the United States remains uncertain due to ongoing discussions about cryptocurrency regulation. Investors are hopeful for regulatory advancements that could lead to ETF approvals, following the precedent set by other cryptocurrencies.
Top Cryptocurrencies: Lots of Options
There are countless cryptocurrencies to invest in and add to your crypto portfolio, and new tokens are created daily. While this can make it difficult to hone in on a specific token to buy, it can also mean many opportunities in the markets. However, it is essential to understand your own risk tolerance and investment objectives before investing. The crypto market is notoriously volatile, leading to large profits and significant losses.
Frequently Asked Questions
Which crypto will boom in 2025?
Predicting cryptocurrency growth in 2025 is challenging due to market volatility, but analysts believe established projects like Ethereum may see significant growth from upgrades and increased adoption. Additionally, the rise of layer-2 solutions and DeFi platforms could boost the performance of certain altcoins.
Is it worth investing in crypto in 2025?
Investing in crypto in 2025 could offer high returns due to market evolution and increased regulation, but caution is advised due to the volatility and risks that may lead to significant losses.
Which coin will reach $1 in 2025?
Predicting if a coin will reach $1 in 2025 is speculative and depends on market trends, investor sentiment, and cryptocurrency acceptance. Popular coins like Dogecoin and Shiba Inu are considered potential candidates, but outcomes in the volatile market cannot be guaranteed.
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.
