Everyone wants to know the best cryptocurrencies to invest in. With over 20,000 cryptocurrencies on the market, what are the best ones to actually buy?
Investors are spoiled for choice. And more often than not, the fear of picking the “wrong coin” often paralyzes investors.
In this article, we’ll go over a durable, strategic framework to help you build a smart portfolio. In traditional finance, advisers have recommended a “three-fund portfolio” for balanced, long-term growth. We’ve adapted that proven strategy for the crypto world to help you cut through the noise and invest with confidence..
What Are The Best Cryptocurrencies to Invest In?
Here’s the truth: there’s no single “best cryptocurrency” to invest in. The “best” investment is entirely dependent on your goals, time horizon, and risk tolerance. A cryptocurrency that’s perfect for an aggressive investor would be the worst option for someone nearing retirement.
The crypto market is defined by extreme volatility. For example, in 2021, Bitcoin reached an all-time high of nearly $69,000, only to fall to around $16,000 by the end of 2022—a drawdown of over 75%. Similarly, Ethereum dropped from approximately $4,800 to below $1,000 in the same period. This level of volatility means that what performs best during a bull market can also experience the most significant losses during a downturn.
Furthermore, the crypto landscape is constantly evolving. The top 10 cryptocurrencies by market cap today look very different from the top 10 five years ago, and they will likely look different again five years from now. This is why focusing on a single "best" coin is risky and short-sighted. A more resilient approach is to build a balanced portfolio that can adapt to this environment.
The Three Pillars of A Crypto Portfolio
For beginners, the best crypto investments aren't random moonshots. They fall into three distinct categories, each playing a specific role in building a resilient and balanced portfolio.
A three-fund portfolio is a way to balance simplicity with diversification. Portfolio managers would normally split it among low-risk, medium-risk, and high-risk investments. Cryptocurrencies are already considered to be inherently high-risk investments, but there are projects riskier than others. Think of it as a pyramid: a strong base, a growth layer, and a small speculative slice.
A beginner dabbling in cryptocurrency might build a portfolio like this:
Pillar 1: The Foundation (50-70% allocation) - Bitcoin (BTC)
Bitcoin is the most established cryptocurrency. Often referred to as digital gold, its role in your portfolio is to generate a solid, long-term store of value and exposure to cryptocurrency.
It’s unlikely to 10x again, but it gives your portfolio stability and credibility.
Pillar 2: Mid-Risk Investment (20-40% allocation) - Ethereum (ETH)
Your portfolio needs exposure to the future of the decentralized internet, and right now, the best asset for that is Ethereum.
A quick disclaimer: not all cryptocurrency is built the same. While Bitcoin was designed to be a peer-to-peer electronic cash system, Ethereum was built to be a decentralized world computer. This is the fundamental difference. Platforms like Ethereum are where innovation happens because they support "smart contracts"—self-executing contracts with the terms of the agreement directly written into code. This programmability is what enables the entire ecosystems of Decentralized Finance (DeFi) and NFTs to exist. Consequently, Ethereum and similar platforms have higher growth potential than Bitcoin but also come with greater complexity and risk.
Pillar 3: High-Risk Investment (1-10% allocation)
This is your high-risk, high-reward play. Here, you allocate a small, responsible percentage to a newer, less-established project, for example, Solana, Avalanche, or a promising new DeFi protocol. Acknowledge that this part of your portfolio could go to zero, but it also has the potential for outsized returns.
The Peccala Approach
Building an entire system of investments is a difficult task. Studies show that serious investors can spend over an hour per day managing their portfolios, which adds up to more than 365 hours a year—the equivalent of nine full-time work weeks. This time is spent not just on research, but on the stressful and constant task of monitoring a market that never sleeps.
Now ask yourself: do you really want to spend nine full-time work weeks glued to your portfolio? Is that the most productive use of your time?
Peccala’s role is to intelligently manage your portfolio for you. Peccala trades across a wide range of assets, automatically managing risk and seeking opportunities—without tying you to just one or two coins. It’s a professionally managed, diversified approach in a single token, designed to execute a sound strategy with the discipline that the market demands.
Building Your Foundation, Then Let A System Do The Work
So what are the best cryptos to invest in? The answer is not a single coin. You can create a portfolio with a foundation of low, mid, and high-risk investments as a logical starting point for your investment journey.
Let Peccala be your automated builder. Discover how our strategies can help you manage your crypto portfolio with discipline and precision. Start investing smarter, without the stress.
