Bitcoin started a new recovery in the final days of March, and since the industry is changing and evolving — especially now that institutional investors are getting deeply involved — it is impossible to know whether this is just a short-term recovery that will end after a few days, or a rally that might take the coin to new heights.
What we do know, however, is that Bitcoin is the most dominant cryptocurrency out there, and as such, it dictates the behavior of the entire market. In other words, where it leads, altcoins most likely follow. The biggest ones follow first, of course, as they are the safest altcoins, and people first start buying them. But, in time, smaller altcoins might follow as well, if the new wave of growth ends up lasting for long enough.
So, if you want to invest in an altcoin or several, here are some of our top recommendations – coins that will definitely follow BTC as it moves back up.
The first on our list is Solana — a smart contract platform that is essentially a much faster, more scalable, and cheaper-to-use version of Ethereum. Solana has been one of the biggest alternatives to ETH after Ethereum’s gas fees surged so much that most people found using its network too expensive.
Solana has, therefore, seen a significant increase in the number of users, projects, and more, which means more use cases for its own token. Essentially, the project is just waiting for a spark such as Bitcoin recovery to launch its crypto to the moon, which is why we believe that it might be worth considering.
Of course, nothing is ever guaranteed in crypto, so maybe even Solana’s growth might be weaker than expected, but based on everything that we know, the project definitely has potential.
To learn more visit our Investing in Solana guide.
The next on our list is Dogecoin. This is the world’s first memecoin, developed back in 2013, and while no one expected it to survive for longer than a few weeks or maybe months, DOGE managed to stay a top-ranking coin for nearly a decade now. It also exploded in 2021 like never before, becoming one of last year’s top performers.
The surge was partially led by its community, but Bitcoin’s contribution is also extremely important, since the coin provided the altcoin market with the right conditions to grow. Dogecoin’s growth was so inspiring that it led to the creation of an entire memecoin sector in crypto, and while some believe that one of these tokens will be the DOGE killer, for now, Dogecoin still sits above them all.
It is impossible to say whether Dogecoin will repeat its performance in 2022, but if Bitcoin truly turns this recovery into a new rally, DOGE will have the conditions to skyrocket again, which is one of the reasons why we believe that investors seeking opportunities should not underestimate it just because it is a joke cryptocurrency.
To learn more visit our Investing in Dogecoin guide.
In the third spot, we have Cardano — another development platform that aims to beat Ethereum at its own game. However, Cardano is different from most others that aim to do the same, and it is quite well-known for its slow but steady development. The coin just finished the second of its five development stages in October 2021, finally launching smart contracts on its platform.
The anticipation alone led to the massive surge of its native coin, ADA, but once the smart contracts arrived and the development of projects that gave ADA new use cases finally started – the market was already crashing. As a result, we believe that the coin never got the chance to reach its real value, and that it remains undervalued to this day.
As a result, a new bullish wave might give ADA just the environment it needs to start growing again, and even skyrocket to heights never seen before, which is why we feel like it definitely deserves a place on this list. Also, it is worth remembering that Cardano still has three more Eras to complete, each of which will make it more advanced, add new features and functionalities, and more, so even if the conditions right now do not allow it to grow, Cardano is definitely one of the best long-term investments you can make.
To learn more visit our Investing in Cardano guide.
Halfway down the list, we have Ethereum. Now, when it comes to Ether, it is pretty clear that it has followed Bitcoin’s lead since its very launch.As the second-largest cryptocurrency and the largest altcoin, plus the birthplace of smart contracts, dApps, DeFi, NFTs, token models, and more, Ethereum is one of the most influential cryptocurrencies out there. However, it still takes after Bitcoin, and when Bitcoin is rising — ETH is not far behind.
With that said, Ethereum did receive a lot of criticism due to its high fees, which are, again, a consequence of low scalability and TPS, leading to struggles to process transactions in time. However, it is also worth noting that, while Ethereum’s average transaction fee did reach its ATH last year, the amount has dropped significantly over time. Right now, Ethereum fees are actually quite low compared to where they used to be, and the network is once again functioning quite well.
Meanwhile, all three of the current largest trends — DeFi, NFTs, and metaverse — are at their strongest on Ethereum’s network, which means that the project will likely continue to see quite a lot of use. And, finally, Ethereum is still in the process of launching ETH 2.0 — an upgrade that will make it more scalable and technologically capable in the future. While nobody can pinpoint the date when it will actually happen, the very fact that it is coming might be more than enough to encourage people to invest and help ETH reach former heights, and potentially new ones.
To learn more visit our Investing in Ethereum guide.
5. Binance Coin
In the fifth spot, we have Binance Coin — the native cryptocurrency of the crypto exchange Binance. Binance has always been among the first to try out new trends and experiments, and so when DeFi started going big, it launched its second blockchain dedicated to development — Binance Smart Chain, or BSC.
Since then, BSC has been Ethereum’s largest competitor, and by far one of the most successful ones. Like with other projects that we mentioned, with Bitcoin’s price on the rise — users will soon start looking towards altcoins, and especially DeFi. And, with BSC being one of the biggest DeFi-oriented chains in the industry, many of these projects will see use. That will lead to the increased use of BNB, which is native crypto on both chains, which will cause Binance Coin to skyrocket.
With all that said, we definitely recommend keeping an eye on BNB, as it is not an accident that it is one of the biggest cryptocurrencies that the industry has right now.
To learn more visit our Investing in Binance Coin guide.
Nearing the end of the list, we have Polygon, formerly known as Matic Network. Polygon is the first, well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. The project has often been in the eye of the industry, given how much the crypto industry needs new solutions for Ethereum.
Using Polygon, it is fairly simple to develop advanced solutions, such as ZK rollup chains, optimistic rollup chains, standalone chains, and more, whatever the developers might need. Thanks to Polygon, Ethereum is becoming a full-fledged multi-chain system, which was nicknamed the Internet of Blockchains.
So, with it being closely tied to Ethereum, it would not be surprising if it went up alongside Ethereum after Bitcoin points the way up. The project might be quite technical in nature, but the crypto industry is aware of how much Polygon’s contributions matter for Ethereum, which is why the project and its native token, MATIC, are quite appreciated.
To learn more visit our Investing in Polygon guide.
Finally, there is Uniswap, as the last on our list. Uniswap, as many likely know, is the largest decentralized exchange in the crypto industry, and it is based on Ethereum’s blockchain. Coincidentally, Ethereum’s blockchain is also the chain with the largest concentration of DeFi protocols in the crypto sector, meaning that Uniswap has the biggest amount of DeFi tokens listed on its platform.
With Bitcoin recovery leading the way up, users will start investing, buying, selling, and trading again, which means that many of them will turn to Uniswap to deal with the Ethereum-based DeFi tokens, which will boost Uniswap’s and UNI’s own usage, thus causing the token’s price growth as soon as the market conditions allow it. It is all one big chain reaction with UNI at the end of it, which is why we believe that it is a token worth considering if you are looking for a new cryptocurrency to invest in.
To learn more visit our Investing in Uniswap guide.
As you can see, there are numerous options, with the coins and tokens mentioned above being some of the safest, and still the most profitable options. There are, of course, many others that you can take into consideration, but make sure that you do your research first, and that you know why you are buying them.