This article covers seven of the best cryptos to buy in over a long-term horizon
- Bitcoin (BTC-USD): The O.G. of the crypto space, which has established itself as a genuine financial asset
- Ethereum (ETH-USD): Crypto with the most use-cases with the potential to outpace Bitcoin
- Algorand (ALGO-USD): Blockchain network focused on solving the industry’s trilemma
- Cardano (ADA-USD): Digital asset with the most compelling development blueprint
- Solana (SOL-USD): With its speed and scale, it has become a facilitator in developing a digital economy
- Decentraland (MANA-USD): Metaverse token with massive growth potential ahead
- Polkadot (DOT): Blockchain focusing on interoperability which could benefit immensely from Web3.0
Cryptocurrencies have taken hiding amidst the risk-off investing environment. After topping $3 trillion last November, the whole sector has shed more than 50% of its value, keeping investors on the sidelines.
The crypto market has had a forgettable five months, with massive declines coming in May. Bitcoin fell below the $26,000 mark due to the weaknesses in the macroeconomy.
Moreover, the rising interest and inflation rates have impacted the stablecoin market as well, much to the surprise of investors. Nevertheless, volatility has been a key feature of the industry, and those looking to wager on the sector should have the stomach for the risk involved.
With higher risk though comes greater rewards, and investors with long-term mindsets can benefit immensely.
There are multiple digital assets that have immense real-world utility and offer tremendous upside potential.
Best Cryptos to Buy: Bitcoin (BTC-USD)
Bitcoin (BTC-USD) is perhaps their first exposure to the nascent asset class for those new to digital currencies. BTC has the first-mover advantage in a fast-evolving sector where longevity is remarkably relevant.
Bitcoin has proven its resilience over the years amidst multiple drawdowns and bouncebacks. Moreover, its broad recognition during the pandemic years has made it a bonafide investment.
Bitcoin has quickly evolved into a genuine financial asset as an expanding infrastructure of products and services supports the crypto giant. Fintech firms such as PayPal accept payments in BTC, along with several of its peers. There are Bitcoin-related exchange-traded funds, and as smart money pours into the asset across the globe. Hence, despite the volatility, BTC-USD has generated mind-boggling returns for its investors and will prove to be an incredible long-term asset.
Ethereum (ETH-USD) is the second most popular asset in the digital currency space. It presents itself as arguably a more lucrative investment than BTC due to the laundry list of real-world use-cases.
ETH powers some of the most powerful and promising technologies in the crypto sector. It’s essentially a smart-contract platform that facilitates the development of everything from non-fungible tokens (NFT) to DeFi applications.
The Ethereum network is transitioning towards a proof-of-stake model, which has been covered incessantly over the past year. The move will generate energy efficiency, significantly lower transaction costs, and make the blockchain faster. The update could be massive for ETH and could help it scale up incredibly over the next few years.
The roll-out of updates has been delayed several times, which has allowed its competition in Cardano and Solana to gain market share. Nevertheless, Ethereum’s positioning remains solid, and it presents itself as a long-term play.
Best Cryptos to Buy: Algorand (ALGO-USD)
Smart contract platform Algorand (ALGO-USD) aims to become the face of DeFi with its unique competitive advantages.
Firstly, it boasts a super-fast platform that can effectively complete transactions within four seconds. Usually, a cross-border transaction might take a week to get settled.
Moreover, there is the cost per transaction, which is significantly lower than a wire fee. Also, the network is big on interoperability, to ensure that blockchain-based Defi goes mainstream.
Hence, it is effectively solving the blockchain trilemma which is a main talking point in the industry. Hence, it’s likely that ALGO-USD could potentially blow up in the coming years.
Cardano (ADA-USD) is a blockchain network that offers the most upside potential in the coming years. It boasts the most compelling development blueprint in the sector, with the end goal of being a completely autonomous network.
The crypto giant achieved a huge milestone last year when it achieved smart contract functionality, enabling developers to build decentralized applications. Over 2,000 smart contracts exist on the network and will continue to grow in line with new updates.
Additionally, the network will become significantly faster with its hydra off-chain scaling solution which could process more than 1,000 transactions per second. Cardano can process 250 transactions per second, which is still substantially higher than its peers. With the completion of its update cycle within the next couple of years, ADA-USD could go off on a monumental bull-run.
Best Cryptos to Buy: Solana (SOL-USD)
Solana (SOL-USD) has often been termed the ‘Ethereum Killer’ for its popularity as a faster and low-cost alternative to other crypto projects.
It has quickly evolved into a major player in the sector and has become a facilitator in developing a digital economy. Multiple NFT projects are launching every day on the network, while Solana Ventures funds the expansion of SOL’s ecosystem.
Last month, the Solana NFT market shot up 91% in value on a sequential basis. Moreover, over 800 daily programs run on the network from just 64 in June last year. Additionally, its most popular crypto wallet grew to a whopping 2 million users within six months.
Decentraland (MANA-USD) is perhaps the best bet if you’re looking into the metaverse real estate sector. It has shown signs of viability and has allowed investors to buy with confidence effectively.
It’s a highly fascinating project which focuses on social interactions among users and real-world partnerships. The project is built on the Ethereum blockchain and features an expanding virtual economy. It is also a decentralized autonomous organization (DAO), enabling users to use MANA to vote on several governance issues, including their development roadmap and fee structure.
The metaverse could be the future of communication and advertising. Big brands are already looking to establish their dominance in the industry which bodes incredibly well for MANA and other metaverse coins. Last year a virtual plot of land was sold for a mammoth $2.43 million on Decentraland, a testament to its burgeoning popularity.
Best Cryptos to Buy: Polkadot (DOT)
Polkadot (DOT) is a protocol that effectively bridges the gap between multiple blockchain platforms. It facilitates the communication of blockchain networks to build a decentralized web.
By connecting networks with specialized coins, the platform can effectively bring out the best qualities of every contributing currency. As a result, developers can look to develop some robust applications that wouldn’t have been possible in another way.
Web3.0 will have plenty to do in shaping the future of Polkadot. In the Web3 era, users will have greater control of their content and significantly better monetization opportunities. Co-founder of DOT, Gavin Wood, believes that Polkadot is at the heart of the Web3 vision. Once the Web3 industry starts picking up the pace, Polkadot can effectively be a major cog in the machinery, effectively skyrocketing its price.
On the date of publication, Muslim Farooque held a LONG position in SOLANA AND ETHEREUM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.