Cryptocurrency is an asset class that has become entrenched in the minds of many growth investors. During the most recent bull market in digital assets, top tokens soared to levels not previously thought possible. Yet, enthusiasm for even killer crypto picks has died down as bearish sentiment swept the sector and the broader equities market.
While there have been some bounces in the crypto sector since it topped out in late 2021, the overall trend is decidedly bearish. The Federal Reserve’s efforts to tame inflation through interest rate hikes have hit assets hard, especially higher-risk assets, which undoubtedly include even the biggest and most highly traded cryptocurrencies.
September looked like it was off to a decent start in the equities and crypto markets, but we saw a sharp reversal today following the latest consumer price index numbers. With the Fed set to meet next week, it’s possible markets will continue to slump in September.
On the bright side, given that expectations for the crypto sector are low, and may remain low for some time, traders have an opportunity to pick up some killer cryptos at prices not seen since the middle of the previous bull cycle. Below are the three I think are worth a look.
Bitcoin (BTC-USD) is synonymous with the crypto sector. The first and largest token by market cap, Bitcoin is the clear leader in terms of institutional adoption. The vast majority of crypto-focused ETFs are Bitcoin-related or hold Bitcoin in a high proportion to overall assets.
This token’s continued adoption as an alternative to fiat currency remains the key driver for most investors. While Bitcoin has certainly not fared well during the recent bear market, it’s held up much better than smaller-cap options of late.
Thus, in this current environment, Bitcoin appears to be a safer bet than most crypto alternatives. What’s more, traders who bought during previous bear markets have been well rewarded. So, for those looking to start building cryptocurrency positions during this time of weakness, Bitcoin is the first killer crypto to put on your list.
The second-largest token by market capitalization, Ethereum (ETH-USD), is second on my list of killer cryptos to buy. This cryptocurrency drives much of the innovation and real-world utility in the crypto sector. From non-fungible tokens (NFTs) to smart contract-based decentralized applications to the metaverse, Ethereum is an essential network for program developers.
The Ethereum merge, which will shift the network to a proof-of-stake consensus mechanism, is set to take place this week. This event is likely to be the biggest single catalyst the crypto market has ever seen. There certainly could be some bumps in the road. However, most investors and experts agree the merge will be a net positive for the network, laying the groundwork for other upgrades that could improve its speed and cost, the latter being the biggest current issue with the high-growth ecosystem.
Ethereum’s price action has mirrored that of Bitcoin. Therefore, investors also have a chance to pick up this killer crypto at a discount and see how far the merge can take it.
Last but not least, we have Solana (SOL-USD). As far as smart contract-enabled blockchains go, Solana remains very high on my list. This network runs on a unique hybrid proof-of-stake and proof-of-history consensus mechanism.
Using this technology, Solana has gained speed and cost advantages that are hard to compete with. Many top developers choose Solana over Ethereum, for example, due to the end-user experience. With significant growth in the world of DeFi and NFTs, there’s a lot to like about Solana’s future market share potential.
Now, speed and cost aren’t the only two factors investors ought to consider. Security and stability are also important. Various network outages over the past two years have shaken investor confidence somewhat in Solana, causing the token’s price to fall. Personally, though, I think this bear market provides a great buying opportunity for investors considering Solana.
On the date of publication, Chris MacDonald has positions in Ethereum and Solana. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.