In this article, we discuss 10 best cryptocurrencies to invest your $1000. If you want to skip our detailed analysis of these currencies, go directly to 5 Best Cryptocurrencies To Invest Your $1000.
The crypto universe has made the transformation from academic white papers to real-world applications rapidly over the past few years. This is evident from the fact that the crypto economy is now valued at more than $2.5 trillion and there are over 12,000 crypto-related projects in existence. Some important milestones that have helped the industry gain mainstream recognition include the wider acceptance of Bitcoin, evidenced by El Salvador adopting it as legal tender, the increased use of crypto in the business world, evidenced by Walmart utilizing the blockchain for a food traceability system, and the allowing of crypto trades by big banks.
In addition to these important milestones, the crypto world has also witnessed an explosion in investment. According to a report by The Block, the venture capital industry poured more than $25 billion into crypto in 2021, a 719% year-on-year increase. There was also an increase of 491% in the number of crypto-related unicorns in 2021. As crypto fever rises, more companies and institutional investors are weighing their overall strategies and formulating some kind of position in the crypto market to take advantage of this massive boom.
Even those investors that have issues about the price volatility of digital assets can gain exposure to crypto through investments in firms like Visa Inc. (NYSE:V), Block, Inc. (NYSE:SQ), and PayPal Holdings, Inc. (NASDAQ:PYPL), among others discussed in detail below.
Our Methodology
These were picked from a careful assessment of the crypto-verse over the past few weeks. The details of each cryptocurrency are mentioned alongside a discussion around top companies working in the sector to provide readers with some context for their investment decisions.
Data from around 900 elite hedge funds tracked by Insider Monkey in Q3 2021 was used to identify the number of hedge funds that hold stakes in each firm.
Pixabay/Public Domain
Best Cryptocurrencies To Invest Your $1000
10. Tether
Tether is one of the most popular “stable coins” on the market. It aims to minimize the volatility associated with other coins, making it a more suitable investment vehicle. The price of stable coins is usually tied to a real world asset. In case of Tether, this asset is the US Dollar. The price of 1 Tether is usually around $1. The main value of Tether and stable coins like it lies in their use as tokens to trade other cryptocurrencies. The Tether coin presently has a market cap of around $78 billion, making it the third-largest cryptocurrency in circulation.
Investors interested in Tether and the crypto world should also keep Alphabet Inc. (NASDAQ:GOOG), the parent company of internet search engine Google, in their sights. Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 2.9 million shares worth more than $7.8 billion.
Just like Visa Inc. (NYSE:V), Block, Inc. (NYSE:SQ), and PayPal Holdings, Inc. (NASDAQ:PYPL), Alphabet Inc. (NASDAQ:GOOG) is one of the stocks that elite investors are buying.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet Inc. (NASDAQ:GOOG) among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet Inc. (NASDAQ:GOOG) as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
9. Uniswap
Uniswap is the local currency of the Uniswap Exchange, a blockchain that allows the trade of Ethereum tokens directly. The Uniswap Exchange is one of the most popular decentralized exchanges for trading cryptocurrencies. In contrast to traditional exchanges where central authorities manage transactions, decentralized exchanges execute through a set of automated smart contracts deployed through independent network computers. These decentralized exchanges do not require opening an account or giving out personal information but are open to anyone wishing to make transactions.
Currencies like Uniswap are becoming more mainstream through the efforts of firms like CME Group Inc. (NASDAQ:CME), the Illinois-based derivatives exchange that accepts crypto trades on the platform. At the end of the third quarter of 2021, 64 hedge funds in the database of Insider Monkey held stakes worth $2.66 billion in CME Group Inc. (NASDAQ:CME), up from 62 the preceding quarter worth $2.64 billion.
In its Q1 2021 investor letter, Cooper Investors, an asset management firm, highlighted a few stocks and CME Group Inc. (NASDAQ:CME) was one of them. Here is what the fund said:
“CME Group Inc. (NASDAQ:CME) has been owned by the portfolio for five years. CME’s strategic positioning as a monopolistic global financial exchange operator will continue to afford the business a highly attractive margin profile. CME Group Inc. (NASDAQ:CME) is well managed however we can no longer identify clear value latency opportunities for the management team to execute against and so decided to exit our position.”
8. Stellar
Stellar is the blockchain network that uses the Stellar Lumens cryptocurrency. The main aim of the Stellar network is to bridge the gap between digital coins and traditional fiat currencies. Unlike other cryptocurrencies, Stellar does not seek to replace fiat money but rather to bring fiat into the new era of digitization. Stellar was founded in 2014 by Jed McCaleb, the founder of the Ripple coin, and Joyce Kim. It was launched in 2015, before even Ethereum. The Stellar network allows users to send fiat currencies across borders at high speeds and with low fees.
Those looking for more exposure to Stellar and the crypto universe should consider investing in Mastercard Incorporated (NYSE:MA), the New York-based payments processing firm. Among the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE:MA), with 5.8 million shares worth more than $2 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:
“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard Incorporated (NYSE:MA) make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”
7. Paribus
Paribus is a cryptocurrency that is powered by the Cardano network and is used for borrowing and lending of NFTs, liquidity positions, and synthetic assets. Paribus aims to unlock the true potential of NFTs and other digital assets so they can become financial instruments that can be traded using different blockchain networks. The Paribus coin has a maximum supply of 10 billion tokens and there are presently around 500 million coins in existence. The Paribus coin has a market cap of around $9 million but high trading volumes.
The rise of crypto coins like Paribus is made possible by the bullish crypto views of people like Elon Musk, the billionaire chief of Tesla, Inc. (NASDAQ:TSLA), the California-based EV maker. At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ:TSLA), the same as in the previous quarter worth $9 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. Tesla, Inc. (NASDAQ:TSLA) stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
6. Aldrin
Aldrin is another decentralized exchange that is fast becoming popular. It uses the Aldrin coin as the native token for trades on the platform. It operates on the Solana blockchain network. The liquidity that the Aldrin Exchange needs for facilitating trades on the platform is provided by users themselves. This also gives users an added incentive to earn rewards by contributing more to the liquidity pool. The trades that happen on the platform make use of smart contracts to offer instantaneous transfers.
Coins like Aldrin have become critical to the overall functioning of the crypto economy by the efforts of companies like NVIDIA Corporation (NASDAQ:NVDA), the microchip maker from California. At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation (NASDAQ:NVDA).
Along with Visa Inc. (NYSE:V), Block, Inc. (NYSE:SQ), and PayPal Holdings, Inc. (NASDAQ:PYPL), NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks that growth investors are keeping their eye on.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA Corporation (NASDAQ:NVDA) and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA Corporation (NASDAQ:NVDA) reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA Corporation (NASDAQ:NVDA) to the portfolio.”
Click to continue reading and see 5 Best Cryptocurrencies To Invest Your $1000.
Suggested Articles:
- 10 Biggest Short Squeezes of All Time
- 10 High Dividend Stocks with Over 12% Yield
- 10 Cheap Value Stocks to Buy for 2022
Disclose. None. 10 Best Cryptocurrencies To Invest Your $1000 is originally published on Insider Monkey.
