The cryptocurrencies experts expect to rise: As Bitcoin reaches levels that tempt even cautious investors, these are the five best investment bets… and five more that aren’t worth the risk

Cryptocurrencies are on the rise again. Bitcoin, the original example of digital money, hit a record high of $99,830 (£79,541) per coin earlier this month, and may have further to rise.

It’s no wonder that newly elected President Donald Trump has previously promised to make the US ‘the world capital of Bitcoin’. It was only two and a half years ago that cryptocurrencies suffered such a decline in value that many thought they would almost disappear into oblivion.

In May 2022, holders lost around £300 billion in value in less than a month, and by the end of that year, Bitcoin was worth less than $17,000.

Now its value has increased by more than 150 percent in just twelve months, and many financial experts predict it could break the $100,000 mark this year. Other cryptocurrencies have seen similar resurgences.

Is it a viable investment now – or as volatile and dangerous as it once was? And for those who want to take a chance, where do experts spy the options – and which options are duds? Do you have to get stuck?

Before you venture into the world of cryptocurrencies, keep in mind that this is not an investment.

They are largely unregulated, highly volatile and risky – and if you lose money you have no protection under the safety net of the Financial Services Compensation Scheme.

Scammers are also taking advantage of the lack of understanding and regulation of cryptocurrencies to steal savers’ money.

Matthew Long, director of payments and digital assets at the Financial Conduct Authority (FCA), said: ‘We continue to warn people about scams and educate them about the risks associated with crypto. If you buy crypto, be prepared to lose all your money.”

That said, cryptocurrency ownership is on the rise, with 12 percent of British adults now owning one, figures from the FCA show.

It clearly arouses people’s curiosity. So if you have money you want to gamble with and you’re confident you know how to buy cryptocurrency safely, where do experts recommend you look for opportunities?

1.Bitcoin

Bitcoin is the largest, best known and most established cryptocurrency. It comes closest to acceptance by the investment institution. Traditional fund managers at investment houses – such as Ruffer, Schroders and Jupiter – have bought it in the past, but never more than a small portion of portfolios.

This growing acceptance, combined with Trump’s return, has many thinking another run is possible.

IG Markets analyst Tony Sycamore says: “Bitcoin’s recent rally remained below the $100,000 mark, leading to a pullback. This retracement is seen as a natural correction, with expectations for a retest to the $100,000 level in the coming weeks. The presence of a pro-crypto president in the White House strengthens long-term optimism for Bitcoin.”

2. Uniswapping

Founded in 2018 by a former Siemens engineer, this is a cryptocurrency exchange owned by its users. Those who own the digital coins of the same name have the right to vote on changes to the way they work.

It is currently valued at $12.99 per token and has doubled in the last 12 months.

Glen Goodman, author of the bestseller The Crypto Trader and former business correspondent for ITV News, says the fact that Uniswap is owned by its users and not by a large company could appeal to crypto enthusiasts who think it will disrupt traditional finance.

“This project revolutionized crypto trading and showed the world what the future of finance could look like,” he says.

‘It is a decentralized marketplace for buying and selling cryptos. The major exchanges are run by big companies, but Uniswap is run by a community of users.”

3. Ethereum

The second most popular cryptocurrency is worth an impressive $434.5 billion, but this is still 78 percent smaller than the market for Bitcoin.

While network and technology improvements could help demand for Ethereum, Danny Scott, author of Bitcoin: Exploreed Like I’m 5 and CEO of crypto retailer Coincorner, said sentiment toward Bitcoin will ultimately determine its future performance.

“As the famous saying goes, ‘A rising tide lifts all boats,’” he notes.

4. Cardano

This coin was founded in 2017 and co-creator Charles Hoskinson helped create Ethereum.

Like Bitcoin, it is seen as a ‘Trump trade’ as its value has skyrocketed since the US elections.

Goodman says: ‘This blockchain platform has struggled to gain popularity over the years, but now its founder claims he hopes to advise the Trump administration. Cardano’s price has skyrocketed in anticipation of Hoskinson getting a role close to the president.”

5. Solana

The blockchain platform or digital ledger has its own self-proclaimed currency.

The cryptocurrency is currently worth $235 per coin, making the market for it $112 billion. Observers believe that as the adoption of the blockchain platform grows, so does the value of its cryptocurrency.

“This is a renowned blockchain platform with impressive transaction speed and capacity,” says Goodman.

“It has some big competitors like Ethereum, but it’s becoming more and more popular.”

CRYPTO ROAD SHEET

Cryptocurrency is essentially digital money, designed as an alternative to traditional currencies such as the pound or dollar.

Transactions made with them are recorded in a decentralized digital ledger called the blockchain, and are therefore not controlled by banks or other financial institutions.

So the only way you can make money with cryptocurrencies is to have someone buy them from you for more than you paid for them.

And five that really aren’t worth the risk

1. Dogecoin

This is best known because it is supported by Elon Musk, the Tesla boss and efficiency czar in the incoming Trump administration. This is known as a ‘meme coin’.

They have no inherent value and are inspired by internet trends. These memes are depicted on the virtual currency, which in the case of Dogecoin is a dog.

Dogecoin is currently worth 40 US cents per coin and has risen 412 percent in the past twelve months. US investment group FRNT Financial says it and other meme coins are ‘a mix of gambling and social media’. It adds: “Meme coin investors are essentially betting on the virality of concepts or memes. Dogecoin’s rally has emerged as a bet on Musk’s new role in the Trump administration.”

2. Moon Coin

Another meme coin, this one was introduced in 2013 and failed to gain traction. Author Glen Goodman says: ‘The name refers to an internet meme, in which crypto investors say that the price of their favorite coin is going ‘to the moon’. The problem with jokes is that the humor fades if you repeat them too often.’

3 & 4. Lambo & Poocoin

Both are meme coins, one has a picture of a yellow Lamborghini, the other has poop. Both are worth less than 0.1 US cents and it currently seems unlikely that their performance will take off.

5. Anti-Elon

Created as a form of protest against the billionaire owner of Twitter and Tesla, AntiElon is worth just 0.3 US cents per coin after losing more than 30 percent of its value. Goodman said it is unlikely there will be a recovery. ‘This was invented to protest Elon Musk’s influence on the crypto market. Now that he is so close to the US president-elect, hardly anyone is buying anything,” he adds.