It’s been a tough year for cryptocurrencies. Not only have prices fallen in lockstep with the stock market, but the sector has experienced numerous bankruptcies, liquidations, and asset freezes among crypto lenders and exchanges in recent months. The situation has called into question the legitimacy of the entire cryptocurrency sector and rattled the faith many investors had in digital coins and tokens. However, there are some top cryptos to buy.
Analysts have referred to the current moment as a “crisis of confidence,” while others have called it a much needed “washout” that will lead to a reset of the cryptocurrency industry. While not every digital asset will survive, many of the more stable and legitimate cryptocurrencies can be counted on to continue and thrive in the years ahead following the current wave of failures and industry consolidation.
Here are three cryptos to buy before Wall Street wakes up and turns bullish.
One of the top cryptos to buy is Ethereum (ETH-USD). The second largest cryptocurrency by market capitalization successfully completed a network upgrade earlier in September that moved it from an energy intensive proof-of-work protocol to a more energy efficient proof-of-stake operating model. Known as “The Merge,” the upgrade is expected to reduce the amount of energy needed to mine Ethereum by 99.95%. Advocates call Ethereum’s upgrade a watershed moment for the entire crypto universe. In future, other digital coins and tokens, including Bitcoin (BTC-USD) are expected to also make the switch to a proof-of-stake protocol.
Most important for investors, the price of Ethereum has come down substantially since The Merge was completed on Sept. 15. Over the summer, in the lead-up to the network upgrade, Ethereum’s price nearly doubled. But since peaking Sept. 10, Ethereum’s price has declined 25% to $1,325.00. This provides an attractive entry point for investors looking to gain exposure to crypto. Many analysts and blockchain experts say that Ethereum could now surpass Bitcoin as the dominant cryptocurrency following its network upgrade and given its use in the world of decentralized finance (DeFi).
Bitcoin Cash (BCH-USD)
Another one of the top cryptos to buy is crypto sleeper Bitcoin Cash (BCH-USD).
Known as a “hard fork” or alternate version of Bitcoin, fans claim that BCH is a faster and more secure version of the largest cryptocurrency. People who support Bitcoin Cash will also tell you that the cryptocurrency more closely adheres to the original vision of Bitcoin that was outlined in a 2008 white paper written by the cryptocurrency’s founder Satoshi Nakamoto. Also, the total supply of Bitcoin Cash will never exceed 21 million coins, matching the supply of Bitcoin. The good news is that Bitcoin Cash costs a fraction of the price of BTC on which it’s based.
While Bitcoin continues to trade around $19,000, investors can buy Bitcoin Cash for $117. Many cryptocurrency experts view Bitcoin Cash as the superior digital asset to own. That said, BCH has seen its price decline dramatically this year. While it has see-sawed a bit since the summer rally that began in July, the price of Bitcoin Cash is down 74% this year. The most recent high for BCH occurred in May 2021 when it was trading at $1,400. Since then, Bitcoin Cash’s price has crashed with the entire crypto market. However, investors shouldn’t be dissuaded from buying Bitcoin Cash on the dip. Advocates say it will continue to exist as long as Bitcoin does.
Created in 2011 by Charlie Lee, a former engineer at Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL) who goes by the online handle “Satoshi Lite,” Litecoin (LTC-USD) is one of the leading “altcoins,” a cryptocurrency created from a fork in Bitcoin. Like Bitcoin Cash, Litecoin shares similarities to Bitcoin but has distinct differences that are designed to improve on the original design of BTC.
Litecoin was created to make it more difficult for largescale mining firms to acquire all of the available LTC. Charlie Lee said he created Litecoin because he was concerned that Bitcoin was becoming too centrally controlled. He was also concerned it would be gobbled up by professional crypto miners running computers around the clock.
Unfortunately, Litecoin has been unsuccessful in preventing professional miners from taking over LTC mining. In time, the mining firms found a way to access LTC, too. Nevertheless, Litecoin remains a strong peer-to-peer payment system that many cryptocurrency experts view as an important part of developing decentralized finance networks that enable people to carry out financial transactions without the need for an intermediary organization such as a bank or credit union. The price of LTC has fallen this year, but not as much as many other cryptocurrencies. Since January, Litecoin’s price is down 64% and trading at $53.45. Its most recent high was also reached in May 2021 when it was trading at nearly $347.