Time to Be Greedy! 3 Cryptos to Buy While Other Investors Are Fearful

  • Investing in growth when it's out of style is a great way to build long-term wealth.
  • Bitcoin (BTC): Continued prominence is likely amid some key catalysts.
  • Ethereum (ETH): Network’s impressive ecosystem and the network's upcoming merge key to consider.
  • Solana (SOL): A promising up-and-coming player, and potentially the future of blockchain.
cryptos to buy - Time to Be Greedy! 3 Cryptos to Buy While Other Investors Are Fearful

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Fear in the overall crypto market continues to take hold, with some wild swings noted in the digital asset market of late. Losses of as much as $200 billion in a single day have been noted this past month, suggesting investors are much more inclined to sell off higher-risk assets first. Thus, instead of looking for cryptos to buy, investors are more interested in which cryptos they should be selling right now.

This view makes sense. There really aren’t any bullish macro factors investors can point to as reasons to own digital currencies right now. In many respects, this sector is still nascent. And with a significant speculative angle needed to invest in these tokens, many investors are choosing to simply sit on the sidelines and do nothing.

However, when a bull market does rear its head once again (and it will), the crypto sector is one that could bounce the hardest. When others are fearful is when many folks bite down hard and start easing into positions. Which tokens to buy, however, is the big question, even for those taking the longest-term view.

Here are three top cryptos to buy for those looking to buy this dip.

3 Cryptos to Buy: Bitcoin (BTC)

Bitcoin (BTC-USD) cryptocurrency with pile of coins, Vector illustrator
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Bitcoin (BTC-USD) happens to be among a few cryptocurrencies still in existence with more than a decade-long track record. Thus, for those taking the long-term view of this sector, Bitcoin is often the first token investors look at.

Over its 13-year history, Bitcoin has historically had a very low beta relative to the stock market. That said, this token hasn’t existed in a recessionary environment. In fact, Bitcoin was created as a result of the financial instability we saw during the financial crisis in 2008. Accordingly, with Bitcoin’s correlation hitting all-time highs relative to the stock market of late, investors may remain concerned that this is just another risk asset due to be hit.

Fair enough. However, the inflows of institutional capital suggest Bitcoin may still be an asset class investors see as worthy of diversifying into. Over the long-term, Bitcoin has stood as a beacon of value, whether investors like it or not. Accordingly, this is a token I think investors need to keep in mind, for those taking the long view on this sector.

Ethereum (ETH)

Crypto currency etherium. ethereum coin on exchange charts. e-currency Ethereum
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Ethereum (ETH-USD), like its larger counterpart Bitcoin, is one of the cryptos to buy that has turned into an asset to sell of late. After hitting an all-time high of more than $4,890 per token in November, this token has since lost approximately 61% of its value from its peak, currently trading closer to the $1,900 range.

That said, Ethereum continues to be the network of choice for developers looking to build any application related to decentralized finance. That’s because Ethereum’s smart contract-enabled blockchain network has the largest ecosystem, by far, of its competitors. This network is also among the safest, providing stability and peace of mind to investors, users and back-end developers.

For investors looking at reasons to consider this token today, it’s the network’s upcoming merge that is generating the most excitement. Via shifting to a truly proof-of-stake network, Ethereum stands to become more efficient, environmentally-friendly and attract even more talent. For those seeking network effects, this is a big deal.

3 Cryptos to Buy: Solana (SOL)

Solana cryptocurrency tokens on a black background. SOL-USD.
Source: Skorzewiak / Shutterstock

Ethereum rival Solana (SOL-USD) is a promising up-and-coming crypto that has become one of the top competing blockchains with Etheruem. Like Ethereum, Solana is a smart contract-enabled blockchain. However, this blockchain has been built from the ground-up as a proof-of-stake chain, incorporating a number of scaling solutions its peers may envy.

Solana’s native token SOL is used for most transactions on this network. Additionally, SOL is required to stake the Solana network. For those bullish on the growth of Solana, this is tied directly to the capital appreciation prospects of SOL.

Indeed, like other top cryptos, Solana’s decline has been notable. Since its peak, SOL has lost more than 80% of its value. Much of this has to do with a number of network disruptions which have brought uncertainty to Solana’s investment thesis.

However, I think the Solana team can get these kinks worked out. This is an ultra-fast network with great scalability and growth prospects. Those thinking long-term would be remiss to ignore Solana’s potential.

On the date of publication, Chris MacDonald has a position in Ethereum and Solana. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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