Top 10 Altcoins of 2024 (2024)

Though Bitcoin has been the most popular crypto over the past several years, many other projects have outperformed BTC and could continue to do well in the future. These tokens, called altcoins, are usually the projects at the frontier of crypto and blockchain development, pushing boundaries and creating new use cases.

Best Altcoins to Buy Now

Let’s take a look at Benzinga’s top altcoins to invest in right now.

1. Ethereum (ETH)

Price: ~$2,500

Market cap: ~$300 billion

Created in 2013, Ethereum is a blockchain that intends to give developers the power to create new projects on a decentralized network. In 2024, some potential catalysts include spot ETH exchange-traded funds (ETFs), as well as upgrades to the Ethereum network.

2. Solana (SOL)

Price: ~$110

Market cap: ~$50 billion

Solana is a blockchain that hopes to give developers the power to bring blockchain technology to the masses. However, the project took a hit when FTX collapsed in 2022. Despite this setback, the token had a strong year in 2023, with momentum that could carry into 2024.

3. Ripple (XRP)

Price: ~$0.50

Market cap: ~$30 billion

Ripple is hoping to bring blockchain technology directly into the banking sphere. While the project has had some setbacks, including an ongoing lawsuit, the community remains committed to the project and believes that the price will rebound.

4. Cardano (ADA)

Price: ~$0.55

Market cap: ~$20 billion

Cardano is a blockchain that has the goal of promoting positive social change. Though it has been under development for the past several years, the final stage of the project is set to go live in Q1/Q2 of 2024 with the launch of the Voltaire governance protocol, which will make the project much more decentralized.

5. Celestia (TIA)

Price: ~$20

Market cap: ~$3.2 billion

Despite its newness, Celestia has quickly become one of the most talked about cryptocurrencies. The goal of the project is to create a modular blockchain, which allows developers to create and test projects much more efficiently. The token has appreciated more than 850% since its launch in late 2023.

6. Dogecoin (DOGE)

Price: ~$0.08

Market cap: ~$11 billion

During the last bull market in 2020-2021, DOGE was all over the news. With endorsem*nts from celebrities and huge price increases, many wished that they had bought DOGE when it was worth less than $0.01. While it has been relatively quiet for the past couple of years, the rise of new meme coins such as Bonk (BONK) could bring a revival to DOGE.

7. Binance Coin (BNB)

Price: ~$320

Market cap: ~$50 billion

Towards the end of 2023, Binance was hit hard when the former CEO, Changpeng Zhao (CZ) was arrested for money laundering charges. Some thought that this would lead to the end of Binance. However, the exchange and the token (BNB) have come back under new CEO Richard Teng.

8. Avalanche (AVAX)

Price: ~$41

Market cap: ~$15 billion

Focused on high speeds and low costs, Avalanche is a blockchain looking to become a scalable solution for the future of blockchain. While the price was fairly steady over the course of 2023, it has had a very strong start to 2024, which could continue throughout the year.

9. Tron (TRX)

Price: ~$0.13

Market cap: ~$11 billion

Tron is a project hoping to directly connect content creators and their fans through the use of blockchain. It hopes to eliminate the middleman in the process, allowing creators to retain more of their earnings and have full control over their digital assets.

10. Polygon (MATIC)

Price: ~$0.85

Market cap: ~$8 billion

Polygon is a unique project hoping to make Ethereum more scalable. It is a Layer 2 solution, meaning that it can help Ethereum process transactions faster by processing them off-chain.

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 around whether or not Ethereum is an altcoin since 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

Out of the 10,000+ altcoins, they can be classified into several categories. Let’s take a look at some examples.

• Stablecoins: Stablecoins are pegged to another currency, usually USD. 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 U.S. 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.
• Governance tokens: Governance tokens are used to facilitate voting for projects. Each token usually equates to one vote so that the community to have a say in where projects go in the future.

Pros and Cons of Altcoins

Let’s take a look at some pros and cons.

Pros

• Can improve upon the model created by Bitcoin
• Large variety of tokens
• Access to decentralized finance (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+ 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.

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?

Since 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 Elon 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 vs. 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. However, this list is far from all-inclusive. Do your own research before deciding on an altcoin to invest in.

Frequently Asked Questions