Investing in cryptocurrencies, though risky, has turned many into overnight billionaires. And as an investor, you may be interested in knowing the top five coins to watch this May. The first step towards investing is research. This is important because the crypto market is not volatile but also dominated by scam tokens.
At the beginning of April, Bitcoin rapidly rose to over $30,000 before retracing below $29,000. Besides Bitcoin, how has the price action of other crypto assets been?
Here, we explore several crypto coins that investors should keep an eye on this May.
The crypto market has witnessed a satisfactory level of recovery since the second quarter of 2023. Investors who want to buy crypto for investment sakes may opt for less volatile assets, such as stablecoins or wrapped tokens.
In the same way, you may decide to invest in diverse crypto assets. The rationale behind this is to have a diversified portfolio to minimize risk. Investing in just one crypto asset may be extremely risky, given the volatile nature of cryptocurrencies.
Thousands of crypto assets exist in the market, making it challenging to choose the best to invest in. However, this guide simplifies the selection process. Below are the top five coins to watch this May.
Bitcoin has remained at the forefront of the crypto market since the release of its white paper in 2008. With a market capitalization of over $542 billion, Bitcoin represents over 36% of the entire cryptocurrency market.
Bitcoin currently trades at $28,008, 68.8% down from its all-time high (ATH) value of $68,000 attained in October 2021. While Bitcoin does not show any potential of rising up to double its current price, it remains the safest bet for most investors.
Even though the price of Bitcoin is highly speculative, it still dominates thousands of other existing crypto assets in the market. This is all thanks to the Bitcoins Lighting Network which prompts lower fees and higher transaction speed.
BTC/USD 24-hour trading chart (Tradingview.com)
Ethereum has shown significant consistency in the last few years. It not only trails Bitcoin as the second-largest cryptocurrency based on market capitalization but is also a central hub for crypto developers. This is evident in the development of decentralized autonomous organizations (DAOs), decentralized finance (DEFI), and non-fungible tokens (NFTs).
With a market capitalization of about $220 billion and a price rate of $1,829, Ethereum is down by about 54.3% of its all-time high (ATH) value of over $4,000 reached in October 2021.
Currently, thousands of crypto-based projects are built on the Ethereum network which makes it extremely valuable among crypto developers. In addition, regular upgrades such as the EIP 1559 and the “Merge” makes Ethereum reliable and faster, and deflate the native Ether token.
ETH/USD 24-hour trading chart (tradingview.com)
The biggest highlight for Dogecoin this quarter was when the memecoin temporarily replaced the Twitter logo. Dogecoin is the fastest-rising memecoin in the crypto industry, all thanks to the push by Elon Musk. Created by Billy Markus and Jackson Palmer, this open-source coin was forked from Litecoin in December 2013 as a fun crypto.
Currently trading at $0.078, Dogecoin is about 88% down from its all-time high (ATH) value. Nonetheless, Dogecoin is highly speculative and has turned several investors into millionaires and billionaires.
Doge’s success story is closely linked to Musk’s love for it. In early 2021, the billionaire tweeted about Dogecoin by sharing a Lion King DOGE meme, prompting a strong rally with intermittent dips. Several months later, the coin’s price tanked by over 70% following Musk’s seeming lack of interest. Nonetheless, occasional tweets by Musks show he still has power over the price of Dogecoin.
DOGE/USD Daily price chart
Considered an “Ethereum killer,” Cardano (ADA) boasts a whooping market capitalization of over $13.4 billion. Currently trading at $0.38, the ADA token is over 74% down from its all-time high (ATH) price of $3 reached in October 2021.
Charles Hoskinson, the network’s founder, announced the Alonzo hard fork in August 2021, prompting Cardano to surge by over 116% the following month. The launch of the hard fork in September 2021, ushered smart contracts that were deployed in just 24 hours.
Even though Cardano’s rate of developing products may be slow compared to other projects in the crypto market, it still promises to launch “gigantic” products. And its investors pride themselves on this.
Binance has been in the news for a while, especially with the collapse of the FTX trading protocol, as well as so much talk regarding the development of its proof-of-reserve (PoR) infrastructure for increased transparency.
Build and Build (BNB), the native coin of the Binance exchange currently trades at $324, more than 46% down from its all-time high value of $600 reached in October 2021. One of the advantages of Binance is its developmental strides as it strives not to only be an exchange but become an infrastructure service provider for the entire blockchain ecosystem.
Unlike Bitcoin which suits the need of aspiring investors whose aim is a long-term investment, Binance is ideal for short-term investors to invest and exit the market in real time. In addition, Binance’s stablecoin, BUSD, has maintained optimum stability as its books show the assets are tied to real-world assets.
Before buying any cryptocurrency, there are certain factors that must be considered. Some of these factors include:
If after answering these questions and you feel convicted to invest, then you should. In addition, you should not compromise on security.
Holding crypto is quite risky. Losing your recovery phrase, sharing your password with third parties, physical damage to your hardware wallet, or even a malicious attack on your hot wallet or exchange wallet may result in the loss of coins. Caution must be taken at all times.
Additionally, cryptocurrencies can be bought and exchanged for cash on several exchanges in Nigeria including Nairaex.