- Overcoming the fear of falling prices makes for a good time to look for cryptos to buy.
- Bitcoin (BTC-USD) is the chief coin in charge that leads the rest of the cryptos.
- Ethereum (ETH-USD) is the dominant transaction facilitator.
- Solana (SOL-USD) is an up-and-coming star challenger to ETH.
- Cardano (ADA-USD) also wants a piece of the Ethereum pie.
- Dogecoin (DOGE-USD) is a fun past winner that earned its kudos.
Overcoming the fear of falling equity prices makes for a good time to look for cryptos to buy. The bulls started their battle from a deep hole during the Sunday night futures session. Crypto investors are no strangers to battles. It’s rare to find consensus in any investment setting or even on the social level. Therefore, investors must draw on many more resources than the traditional theories.
I’ve had to use charts, facts and a bit of logic. Investors will also need to suppress fears because it is hard to allocate risk to something this new and foreign. This also includes the fear of missing out. Most people are likely apprehensive about investing in cryptos because of ignorance. When we don’t know the subject matter, we avoid it. In the long run, everyone will need to learn about cryptos.
Just like everything in our lives going digital, cash will too. Some of these cryptos to buy today will win in the long-term because of it. They are laying the ground work for what’s to come next. Some cryptos have specific fundamentals, others don’t. Either way, they will move in unison as an asset class. This weekend, they are retesting lows from January, which will be bearish catalysts if they fail.
Here are my top five no-brainer cryptos to buy now:
Cryptos to Buy: Bitcoin (BTC-USD)
We cannot have a list of cryptos to buy without including the chief coin in charge. Bitcoin (BTC-USD) still represents the whole sector, and for good reason. Its market capitalization (market cap) dwarfs all others. Not investing in it is purposely opting out of the best win there was in a decade.
Allocating risk to Bitcoin should resemble the old school strategies for investing in gold. We cannot predict perfect bottoms, so we distribute the entries over time. This, of course, must come with the assumption that the asset is likely to hold its value. And this is where the plot to this thesis thickens. It is hard for crypto fans to make their argument when they have revered experts mocking the sector.
Take Mr. Buffet and Mr. Munger of Berkshire Hathaway (NYSE:BRK-B), who constantly demean its outlook. This happened most recently during their investors shindig last month. I remember days when Apple (NASDAQ:AAPL) was a no-touch for them. Now it is their largest asset, almost half their portfolio. In the future, they might both see the error of their ways on crypto. Money will go digital and these cryptos will be an incredible asset. Is there risk? Yes, but with Bitcoin, it’s as sure of a thing in crypto as they come.
Like Bitcoin, when discussing a list of cryptos to buy, we must include Ethereum (ETH-USD). The majority of crypto transactions currently happen across its network. Therefore, the value of ETH-USD should remain relevant, since it’s the currency that makes things happen. It has competitors, but they have a long way to go before they catch up. Besides, there is plenty of room for all of them to prosper.
Ethereum is not the fastest or most efficient and it is definitely not the cheapest crypto. But for now, it is the one all other transactor coins are following. So, in spite of this correction, the outlook for ETH-USD remains bright. Last year, I patiently waited for an entry on the dip. The results were great. Since I waited patiently, a rebound rally rewarded me with 45% of upside.
I see similar opportunities now, but investors need to practice restraint. Going all in might be too rash since we don’t know how deep this dive will be. Last November, I foresaw a correction, but in three phases. The first happened and ended in January. This could be the second wave. We will learn more about this by week’s end if ETH has supports at $2,300 and $2,160. Otherwise, the bears could take it to last summer’s level, close to $1,700. Leaving room to add lower is important.
Cryptos to Buy: Solana (SOL-USD)
If Ethereum is the king of transaction processing, then Solana (SOL-USD) is its up-and-coming star challenger. It is thousands of times faster and more efficient, so it is likely cheaper to use. While its market cap is still 10 times smaller than ETH, that is just extra potential to grow into. Just like ETH is chasing Bitcoin, SOL is chasing ETH.
If crypto experts are correct about its speed and affordability, then Solana will win in the long-term. Each organization has its own shtick. For Solana, it is proof of history. It is hard to imagine that such subtle things can make for a big differential in speed and efficiency. But I trust in the expert opinions on the matter, so I hold some for the long-term.
My last purchase of it was at $78 earlier this year and it rallied to over $140 in April. This was my third 30% swing. So, I want to hold my next batch as a core position. I plan on staking any new purchases immediately to earn 3% on my coins. This doubles as a bonus and a deterrent to stop me from trading it for short-term profit.
Solana is not the only Ethereum challenger. Cardano (ADA-USD) is another, which also touts advantages over Ethereum. For example, it is almost three times faster, with even more potentially aggressive future speeds. But for now, it seems like it is losing a bit of steam. Nevertheless, ADA belongs on the list of cryptos to buy just because of the size of the opportunity.
The addressable market is too enticing to assume that only two companies can dominate it. Besides, Cardano’s market cap is about the same size of Solana’s. I favor the prospects of Solana because of their relative performance to themselves. ADA’s market cap is 76% below its all time high and 40% below its August lows. Meanwhile, SOL is only 70% below its highs and 140% above its August levels. In this case, I would not put both SOL and ADA in the same portfolio. I know I will need ETH for transactions and it will be relevant five years from now. I can’t say the same to either challenger, so I would only want to speculate on one, not both.
Cryptos to Buy: Dogecoin (DOGE-USD)
My last on the list of cryptos to buy for the long-term is Dogecoin (DOGE-USD). It has a strong following that can give it sustainability. In addition, this earned it the right to also be used as a currency. DOGE blurs the line between utility and novelty coin. That’s perhaps the byproduct of Elon Musk’s public support of it. On more than one occasion, Mr. Musk has moved its value with simple tweets.
In the process, he riled up an army of retail fans who turned into staunch investors in Dogecoin. Sadly, with extreme hoopla come harsh disappointments. DOGE is now more than 80% below its highs. But it has been there before, so I am confident that the bulls will make another run for it. My last purchase of Dogecoin was around these levels and I quickly collected a handsome reward.
On my run with DOGE, I might trade it rather than accumulate it for the future. But it has performed well long-term. It is also important to note that I contemplated adding a Metaverse coin to today’s list. However, I am certain that the other coins I picked will make themselves useful in the Metaverse.
On the date of publication, Nicolas Chahine held USDC, CRO, SOL, and ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.