Fear has taken hold in the crypto industry as a whole, with recent violent fluctuations in the digital asset market. This month, investors have seen losses of up to $200 billion in a single day, indicating that they are considerably more likely to sell higher-risk assets first. As a result, rather than hunting for cryptos to purchase, investors are more concerned about which cryptos they should sell right now.
This viewpoint is reasonable. There are currently no favorable macro variables that investors may use to justify owning digital currencies. In many ways, this industry is still in its infancy. And, since investing in these tokens requires a large amount of speculative risk, many investors are opting to wait on the sidelines and do nothing.
However, if and when a bull market emerges (and it will), the crypto sector will be the one to benefit the most. Many people bite down hard and start relaxing into positions when others feel afraid. Even for those who take the long view, deciding which tokens to purchase is a difficult task.
For those wanting to purchase this dip, here are three prominent cryptos to consider.
Cryptocurrencies to Purchase: Bitcoin (BTC)
Bitcoin (BTC-USD) is one of the few cryptocurrencies still in use today that has been around for more than a decade. As a result, Bitcoin is often the first token investors consider when taking a long-term perspective of this industry.
Bitcoin has had an extremely low beta in comparison to the stock market during its 13-year lifetime. This token, however, has never existed in a recessionary setting. Bitcoin was founded as a reaction of the financial instability that occurred during the 2008 financial crisis. As a result, with Bitcoin’s correlation to the stock market reaching all-time highs recently, investors may be apprehensive that this is simply another risk asset about to be whacked.
That’s all right. However, institutional capital inflows show that Bitcoin may still be a worthwhile asset class for investors to diversify into. Whether investors like it or not, Bitcoin has shown to be a reliable store of wealth over time. As a result, I believe this is a token that investors should keep in mind, especially if they are taking a long perspective on the industry.
Ethereum (ETH-USD), like its bigger rival Bitcoin, is a crypto to purchase that has recently become a commodity to sell. After reaching an all-time high of more over $4,890 per token in November, this token has lost about 61% of its value since then, and is now trading in the $1,900 level.
Nonetheless, Ethereum remains the network of choice for developers wishing to create any decentralized finance-related application. This is due to the fact that Ethereum’s smart contract-enabled blockchain network has by far the most ecosystem of its rivals. This network is also one of the safest, giving investors, consumers, and back-end developers with security and peace of mind.
The network’s forthcoming merging is creating the greatest enthusiasm among investors seeking for reasons to consider this currency now. Ethereum will become more efficient, environmentally friendly, and attract even more talent if it switches to a true proof-of-stake network. This is huge news for anyone looking for network effects.
Solana (SOL-USD), an Ethereum competitor, is a promising up-and-coming coin that has quickly established itself as one of the top competing blockchains alongside Ethereum. Solana is a smart contract-enabled blockchain, similar to Ethereum. This blockchain, on the other hand, was constructed from the bottom up as a proof-of-stake chain, with a variety of scalability solutions that its competitors may envy.
The native token of Solana, SOL, is utilized for the majority of transactions on this network. SOL is also responsible for staking the Solana network. This is closely linked to the capital appreciation chances of SOL for those enthusiastic on Solana’s expansion.
Solana’s collapse has been noticeable, as has the decline of other leading cryptos. SOL has lost more than 80% of its value since its peak. Much of this is due to a series of network outages, which have cast doubt on Solana’s investment thesis.
However, I believe the Solana team will be able to iron out the problems. This is a super-fast network with a lot of scalability and room for expansion. Long-term investors would be foolish to overlook Solana’s potential.