In 2018, the cryptocurrency market experienced a significant correction from its all-time high in 2017, offering investors an opportunity to explore the best investment options in a more stable and promising landscape. Despite the market fluctuations, many cryptocurrencies demonstrated strong potential, making them worthwhile considerations for those with a long-term investment horizon.
The year 2018 was marked by increased regulation, institutional investment, and technological advancements in the crypto space, all of which shaped the market and influenced the top crypto investments. In this comprehensive guide, we will explore the best crypto investments of 2018, their distinctive features, and the factors that contributed to their success.
Best Cryptocurrencies by Market Capitalization in 2018
The market capitalization of a cryptocurrency primarily determines its liquidity and stability. In 2018, the top performing cryptocurrencies in terms of market capitalization (as of December 31) were Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin.
Bitcoin (BTC)
Despite experiencing a 74% annual loss, Bitcoin remained the dominant cryptocurrency in 2018, accounting for over 50% of the total market capitalization. Its resilience, brand recognition, and network effect have solidified its position as a store of value and a gateway into the crypto ecosystem.
In 2018, Bitcoin's mining difficulty reached unprecedented levels, making it even more secure. Moreover, the Lightning Network saw significant growth, offering an efficient solution for faster, scalable, and low-cost Bitcoin transactions.
Ethereum (ETH)
Ethereum, the second-largest cryptocurrency by market capitalization, showcased its potential as a decentralized computing platform. In 2018, the focus was on scaling, privacy, and the development of the Ethereum ecosystem.
The introduction of Ethereum Improvement Proposals (EIPs) like EIP 1014 and EIP 1018 enhanced Ethereum's smart contract capabilities, paving the way for the launch of the proof-of-stake system, Ethereum 2.0, in 2020.
Top Crypto Performers in 2018 by Percentage Gains
While market capitalization is an essential metric, the percentage gains provide insights into the most promising cryptocurrencies, even if they have a smaller market presence.
Basic Attention Token (BAT)
BAT, the native token of the Brave web browser, saw remarkable growth in 2018. The browser's popularity surged as users embraced the privacy-focused, ad-blocking feature, driving demand for BAT as a reward for attention and engagement.
The partnership between Brave and TAP Network, which integrates BAT with more than 150,000 content creators, further boosted BAT's value and adoption in the market.
VeChain (VET)
VeChain, a blockchain platform focused on supply chain management and enterprise-level solutions, made significant strides in 2018. Its partnerships with prominent companies such as DNV GL, PwC, and IBM, as well as its inclusion in the trot and airdrop, contributed to its impressive gains.
The introduction of the VeChainThor blockchain and the VeChain Foundation's aggressive expansion plans further enhanced the cryptocurrency's appeal, making it one of the most promising blockchain projects in the IoT and supply chain sectors.
The best crypto investments of 2018 demonstrated a clear focus on real-world applications, strategic partnerships, and technological advancements. As the crypto landscape continues to evolve, investors should remain vigilant and explore cryptocurrencies that align with their investment goals and risk tolerance. Embracing a diversified portfolio that combines established cryptocurrencies like Bitcoin and Ethereum with promising, high-growth projects like BAT and VET may be the key to success in the dynamic world of cryptocurrency investing.