The Best Cryptocurrency to Buy With $1,000 Right Now

While there are thousands of cryptocurrencies, most of them do not merit investment consideration, in my opinion, largely due to their inability to offer real-world utility and stand out among their peers. There are certainly 10 to 20 cryptocurrencies that do merit consideration, but even many of these are high-risk right now, as the crypto sector is still a relatively new asset class.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Based on what we know about the sector right now, there is only one clear answer when it comes to looking at the best cryptocurrency to buy, and that is clearly Bitcoin (CRYPTO: BTC), the world's largest cryptocurrency, with a market cap now over $2 trillion.

Why Bitcoin is the most clear-cut buy

Bitcoin is the best token to buy because investors increasingly view the token as a form of digital gold, with its 21 million tokens (never any more) it is a hedge against inflation. This makes it a unique form of diversification, which is why I feel investors can allocate at least some of their capital to the token. Bitcoin may prove especially important as the U.S. government continues to grapple with tens of trillions in mounting debt.

I understand that not everyone views Bitcoin in this light, but at some point, you do have to listen to what the market is saying, and Bitcoin has now survived drawdowns of at least 50% on six separate occasions since 2011.

This tells me the token has staying power. While I don't believe in making bonkers long-term price predictions like some, I think Bitcoin can generate healthy long-term returns. It's the best cryptocurrency to buy with $1,000 right now.

Bram Berkowitz has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.