3 Cryptos to Buy if You DON’T Think the Industry Is Doomed

  • Here are cryptos to buy if you DON’T think the industry is doomed:
  • Bitcoin (BTC): The largest crypto by market cap has maintained its price following the FTX collapse.
  • Ethereum (ETH): The move to a less energy intensive protocol give this cryptocurrency a new lease on life.
  • Litecoin (LTC): A leading altcoin, this crypto plays a practical and important role in decentralized finance.
cryptos to buy - 3 Cryptos to Buy if You DON’T Think the Industry Is Doomed

Source: Wit Olszewski / Shutterstock

The spectacular implosion of cryptocurrency exchange FTX, which filed for bankruptcy on November 11 citing $8 billion of losses, has thrown the entire universe of digital coins and tokens into disarray. In recent weeks, the media has been filled with headlines about other crypto exchanges and lenders that have halted client withdrawals and filed for bankruptcy themselves as the contagion from the FTX collapse spreads around the world. At the same time, critics have lined up to declare the end of cryptocurrencies and sound the death knell for the entire industry, which, at its peak in November 2021, had a collective market capitalization north of $3 trillion. Despite all of those challenges, the sector still has many positive catalysts, strengths, and opportunities, So here are three cryptos to buy if you DON’T think the industry is doomed.

BTC Bitcoin $17,100
ETH Ethereum $1,265
LTC Litecoin $82

Bitcoin (BTC)

A Bitcoin (BTC) coin surrounded by gold.

Source: Shutterstock

Bitcoin (BTC-USD) is still the king when it comes to cryptocurrencies. While Bitcoin sunk over the past 12-months, declining 75% from its all-time high of 68,000 in November 2021 to just over $17,000 today, there are reasons to remain optimistic about the biggest crypto by market cap. Perhaps the most heartening thing about Bitcoin is that its price didn’t collapse in the wake of FTX’s failure.

When it became clear in early November that FTX was teetering on the brink of insolvency, Bitcoin’s price dipped from about $16,000 to a low of $15,757.20 on Nov. 9. While many pundits predicted that BTC’s price would plunge below $10,000, it didn’t. Rather, Bitcoin’s price quickly moved back above $16,000 and has held steady ever since, suggesting a bottom may have formed.

Today Bitcoin’s price is back over $17,000, and the digital coin is showing some resilience despite the industry’s turmoil. Crypto bulls also continue to point out that Bitcoin remains the most widely used and traded digital asset, as well as the one that all other cryptocurrencies aspire to become. If any digital coin is likely to survive the crypto winter, it is BTC.

Ethereum (ETH)

A concept image of mining an Ethereum (ETH) token.

Source: Shutterstock

A lot of good things have happened to Ethereum (ETH-USD) this autumn. In September, programmers successfully transitioned ETH to a more energy efficient, proof-of-stake protocol. The shift from the previous energy intensive, proof-of-work operating model, a process known as “the Merge,” makes Ethereum the most energy efficient cryptocurrency there is today.

The new proof-of-stake operating model is expected to cut the energy used to obtain new Ethereum tokens by more than 99%. Industry experts call the ETH upgrade a revolution for the entire crypto sector. This is because  the excessive energy consumption used to mine cryptocurrencies was one of the biggest criticisms of the industry.

Going forward, it is expected that other digital coins and tokens, including Bitcoin, will follow Ethereum’s lead and also move to a less energy intensive, proof-of-stake protocol. Other reasons to remain hopeful about Ethereum is the role it plays in facilitating decentralized finance (DeFi) transactions and smart contracts, giving it a practical utility that most other cryptos lack.

Ethereum’s price has fallen 73% since peaking above $4,500 in November 2021. Today, it is trading right around $1,265.

Litecoin (LTC)

Image of one litecoin in front of many stacks of litecoins

Source: Wit Olszewski / Shutterstock.com

Litecoin (LTC-USD) has some credibility that other, smaller cryptocurrencies lack. First, it was created in 2011 by Charlie Lee, a former engineer at Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL). Over the past decade, Litecoin has established itself as one of the more reliable and trustworthy “altcoins.” The latter term refers to cryptocurrencies created from forks in Bitcoin. Although Litecoin has similarities to Bitcoin, it also has distinct differences that are designed to improve on the original design of BTC.

Specifically, Litecoin has developed a reputation for being a strong peer-to-peer payment system that many cryptocurrency experts view as an important part of developing decentralized financial networks. These networks enable people to carry out digital transactions without the need for an intermediary such as a bank or a credit union. Many experts see LTC as playing a key role in the future of digital finance.

The price of LTC peaked at nearly $350 in May 2021.  It  now trades at $82. While the decline has been disappointing, Litecoin continues to change hands at a much higher price than many of its peers, showing the value that many crypto traders and investors see in the digital token and its future potential.

On the date of publication, Joel Baglole held a long position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.  

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Article printed from InvestorPlace Media, https://investorplace.com/2022/12/3-cryptos-to-buy-if-you-dont-think-the-industry-is-doomed/.

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