Best Crypto To Buy Right Now
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That said, looking among this year's biggest gainers, Lido DAO (LDO -1.55%) is one token that has caught my attention. I think this is a crypto that's worth buying, despite its incredible year-to-date move of more than 170%.
Lido is a leading liquid-staking solution for digital assets supported by proof-of-stake consensus mechanisms. Proof-of-stake cryptos secure their networks and validate transactions via a process whereby users put up their tokens (their stake) as a means of verifying transactions are accurate. This is in contrast to proof-of-work networks, such as that of Bitcoin, which require significant computing power to solve mathematical problems to accomplish the same effect.
Thus, Lido's network supports a much more energy-efficient future for crypto. Currently, Lido's staking solution mainly supports Ethereum, though the project does bring together node operators to manage the validation infrastructure on Solana and the blockchains as well.
Lido essentially allows smaller crypto investors to pool their funds to get into the staking game. For Ethereum, the amount needed to set up a validator node is 32 ETH tokens (roughly $50,000). For those without those kinds of funds invested in Ethereum, Lido is realistically the only game in town.
Lido DAO offers several attractive benefits when it comes to investing in cryptocurrency. First, users can participate in the governance of the projects they support and earn rewards for doing so. This creates an engaged community and drives up demand for a given token.
Other benefits include the option of taking out loans against crypto assets, earning yield and access to staking pools with higher rewards than traditional decentralized finance (DeFi) protocols. And Lido's intelligent contracts are audited by Chainsecurity, so users can be sure that the protocols are secure and compliant.
That's not to say there aren't risks with Lido's current model. As the staking leader for the massive Ethereum platform, how regulators choose to view staking matters a great deal to Lido. Accordingly, comments from the Securities and Exchange Commission (SEC) about the potential for staking to be restricted to individual investors has raised eyebrows in the crypto community.
While still rumors at the time, Coinbase Global CEO Brian Armstrong came out ahead of subsequent SEC comments, calling the restriction of staking activity a "terrible path" for the U.S. in its fight to gain crypto dominance, and at least control how this technology is directed globally.
Those deeply involved in the crypto market know how important Lido's decentralized liquid-staking solution is to the viability of proof-of-stake blockchains everywhere. For this sector to grow in an energy-efficient manner, projects like Lido are necessary.
The crypto market stands at a crossroads right now. The total value of all cryptocurrencies stands at $857 billion today, down from $2.8 trillion in November 2021. The sector was rocked by scandals and financial meltdowns in 2022, many of which are ongoing stories with unknown consequences in 2023 and beyond. At the same time, there are a few positive notes in the air. Those crypto scandals may inspire lawmakers to speed up the progress toward a fully functional system of laws and regulations for crypto trading. Decentralized finance and Web3 apps are champing at the bit. Institutional investors have started to accept Bitcoin (BTC 0.09%) as an investable asset.
It's hard to say where the crypto market will go next, but the long-term trend seems obvious. I expect a full recovery followed by fresh growth for many years to come. Crypto investors just have to get over this speed bump first (and probably many more in the future).
From that perspective, it would be easy to recommend buying some Bitcoin or Ethereum (ETH -0.26%) while the largest names in crypto are trading near multi-year lows. However, most altcoins are less robust, and thousands of ill-fated cryptocurrencies should go to zero