Investors have incredibly short attention spans these days. They have moved from GameStop (NYSE:GME) to AMC Entertainment (NYSE:AMC) and Newegg (NASDAQ:NEGG) in the blink of an eye. The same is true in the world of cryptocurrencies. Following a massive run-up in Bitcoin (CCC:BTC-USD), investors started chasing Ethereum (CCC:ETH-USD)… and then Dogecoin (CCC:DOGE-USD). Now, attention is shifting away from DOGE, leaving some to declare Dogecoin is dead. If that is the case, there are a few cryptos you should be sure to buy now.
So what do you need to know now before diving in?
Earlier in the year, Dogecoin was the crypto buy. The underdog soared to 73 cents in a matter of weeks, making retail day traders millionaires. Now though, the hype appears to be fading. Elon Musk and Mark Cuban and Guy Fieri are all cooling down. DOGE prices have fallen to the 20-cent range. Wall Street, as InvestorPlace contributor Josh Enomoto argued, thinks Dogecoin is dead.
Regardless of whether Enomoto is right, it is important for investors to diversify their crypto portfolios and find long-term winners. It’s time to return to the fundamentals — picking tokens with utility beyond that of Shiba Inu (CCC:SHIB-USD). If Dogecoin and SHIB can’t find real-world uses, they could join their fallen peers in the crypto graveyard.
So what does that mean for investors? Right now, we know Wall Street is betting that Dogecoin is dead. That means you should bulk up your portfolios with these three immortal picks:
If Dogecoin Is Dead, Buy Ethereum (ETH-USD)
The cryptos that people are focusing on now are hyper-volatile. Tiny market capitalizations, no utility, and out-of-this-world hype creates cryptos doomed to fail. All it takes is a sizeable group of investors packing up in favor of the next big thing.
Obviously, if you want something built to last, go with something established — and a dedicated fanbase. Ethereum is the clear winner in all of these categories.
Ethereum is the second largest crypto in terms of market cap, with a healthy $250 billion to rest on. It is of course subject to the mood swings of the entire crypto asset class, and can’t escape the price slippage that comes with regulatory fears. However, it’s much steadier than that of arbitrage tokens, which can dip whenever something as simple as a large transaction occurs.
Beyond this, Ethereum has a utility, and a major one at that. Ethereum is the foundation upon which most of those arbitrage tokens were created. SHIB wouldn’t even exist without Ethereum, because it was built on Ethereum. ETH is such an influential crypto because it literally sets the standard for many other tokens. The Ethereum network, with its gold-standard smart contract language and increasing scalability, gives it a greater utility than most other cryptos on the market.
That’s why ETH is built to last.
Binance Coin (BNB-USD)
Binance Coin is the slightly smaller competitor to Ethereum, but it’s plenty powerful on its own.
The Binance network is one of the fullest blockchain networks out there, and it’s less of an Ethereum-lite and more of an Ethereum adversary.
Binance is one of the most popular crypto exchanges in the world. It hosts over 500 cryptocurrencies on its trading floor, making it one of the most robust arbitrage platforms in the entire class of exchanges. It’s also the No. 1 exchange in terms of daily trading volume. Just today, Binance saw nearly $14 billion in exchanges.
What I find most interesting about Binance is one of its newest products: the Binance Smart Chain. BSC is what puts Binance in such close competition with Ethereum. Launched in September 2020, the chain is already playing host to hundreds of tokens of various sizes. Its BEP-20 token standard rivals that of Ethereum’s ERC-20 token standard, and relieves Ethereum of its quasi-monopolization of DApp production and DeFi functionality.
Binance is coming for the crown, and its Smart Chain’s rapidly growing popularity evidences its likelihood of long-term viability. Its $48 billion market cap also ensures some stability in a largely unstable market. If you think Dogecoin is dead, and you want something that won’t follow it to the grave, BNB is a solid bet.
If You Think Dogecoin Is Dead, Buy Uniswap (UNI-USD)
Uniswap is similar to Binance and Ethereum in that it hosts exchanging of a variety of tokens; however, Uniswap users aren’t subject to the downfalls of centralized exchanges with the Uniswap marketplace. That’s because Uniswap is the largest and most successful decentralized exchange, or DEX, making its tokens one of the most likely to stay around for a long time to come.
DEXs and CEXs each have their pros and cons, and investors have their own preferences. If you think of cryptocurrency as a true new frontier of finance, where central bodies hold no sway over your money, DEXs are your friend. Uniswap is the truest platform to that idealistic version of a crypto exchange.
The Uniswap exchange has all the same bells and whistles of a centralized exchange, with a couple exceptions. You can’t trade with fiat currency; all transactions take place as token-for-token swaps between users. However, the positive tradeoff is complete anonymity and higher security than that of a CEX.
Uniswap sees the most trade volume of any DEX on the market; just today, it has seen over $800 million in token swaps. The exchange is also constantly seeing upgrades, most recently in the form of Uniswap V3, a revamp which sees more control given to liquidity providers and a new fee system, rewarding stakers for risk-taking. It’s this constant innovation and decentralized envelope-pushing that makes Uniswap out to be a long-lasting crypto play.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.