With crypto’s inherent volatility, picking the right short-term investment requires careful research. For UK investors, we’ve analyzed 8,845 active cryptocurrencies to bring the top 5 short-term investment picks for 2024.
1. Uniswap (UNI): Leading Decentralised Exchange
Uniswap stands out as a decentralized exchange that introduced the automated market maker (AMM) model, allowing direct token swaps without intermediaries. In March 2023, Uniswap’s daily trading volume surged to a record $11.84 billion, underscoring its resilience during market instability. Currently, UNI is up 32% (December 2023), making it a strong pick for short-term gains with growth potential and high volume capacity.
2. Bitcoin (BTC): High Liquidity and Volatility
Bitcoin remains the largest cryptocurrency, known for its high liquidity, making it ideal for quick trades. The asset recently saw an 11% price increase after positive news about a potential US spot Bitcoin ETF. While Bitcoin’s volatility can yield swift gains, precise timing is crucial to avoid losses. Overall, Bitcoin’s high volume and liquidity make it a prime option for short-term investors.
3. Ethereum (ETH): Expanding Institutional Interest
Ethereum, the second-largest cryptocurrency, underpins numerous decentralized applications (dApps), including DeFi and NFT markets. Unlike Bitcoin’s recent rally, ETH has lagged slightly, potentially offering room for upward movement. Significant developments, like Santander’s support for ETH trading and BlackRock’s “Ethereum Trust” registration, reinforce its growing legitimacy in institutional finance. With its liquidity and expanding real-world adoption, Ethereum is a top short-term buy.
4. Solana (SOL): Rapid Growth and Network Upgrades
Solana’s recent 116% gain and rising usage signal rapid development. Trading volume hit record highs in November 2023, and its total value locked (TVL) in DeFi protocols jumped from $215 million to over $1 billion in 2023. Outperforming major assets, Solana is well-positioned for short-term gains with ongoing network upgrades.
5. XRP (XRP): Fast Transactions and Regulatory Clarity
XRP offers rapid, low-cost transactions that appeal to short-term traders. Partnerships like the National Bank of Georgia and Dubai Financial Services Authority’s regulatory approval have contributed to a 26% price increase in a week (December 2023). With its speed and rising usage, XRP is a compelling choice for active investors.
From Uniswap’s AMM model to Ethereum’s DeFi applications, these cryptocurrencies represent some of the best short-term investments, offering liquidity, growth potential, and relevance for the UK’s crypto-savvy investors in 2023.
