Plenty is going on in the world of cryptocurrencies. Indeed, whether you’re looking for cryptos to buy or sell, now is the time to do some in-depth research into this sector.
Well, crypto volatility has led us to an interesting point in time. Following the fastest interest rate hiking schedule in decades, the crypto sector plunged in 2022. However, this trend shifted after signals emerged that a pause could be on the horizon.
It’s entirely possible the next bull run could be on the horizon. If the market is right and rate cuts are in order this year, that’s likely a good thing for risk assets.
The only question is whether a deep and prolonged recession will also result. If that’s the case, investors may be less inclined to focus on cryptos to buy rather than putting food on the table. We’ll see.
In any case, here are three cryptos to buy for long-term investors looking to increase exposure to this sector right now.
Leading off this list of cryptos to buy is none other than Solana (SOL-USD).
A massively resilient autonomous blockchain technology, Solana is a leading layer-1 network I’ve got my eye on. That’s because Solana is perfect for minting non-fungible tokens (NFTs) and decentralized applications (dapps).
As one of the top competitors to Ethereum (ETH-USD), Solana gained significant attention in recent years. That’s because Solana has provided much of the same utility as the Ethereum network at a much lower cost. Additionally, this network is much faster than its top-end peer.
One of the critical aspects of building a truly impressive ecosystem is having infrastructure that can process many payments swiftly and affordably. Solana is among the best networks in this regard. With a transaction processing capacity of 4,600 per second, Solana outperforms Ethereum, which can only manage 10.4 transactions per second. Additionally, the transaction costs on the Solana network are minimal, even during periods of high activity, whereas Ethereum can cost several dollars. Indeed, Solana is in a league of its own regarding scalability, speed, and affordability.
Should the crypto market and Web 3.0 become mainstream, the most successful blockchain will probably strongly resemble Solana. A blockchain network that is swift and economical is essential, and currently, Solana is unrivaled in its combination of speed and cost-effectiveness at scale.
Ethereum, the second-largest blockchain network worldwide, is a critical player regarding real-world uses. Its value is evident in the increasing number of projects developed on the web, which contributes to its remarkable resilience in challenging economic conditions.
Shareholders are increasingly looking for alternate methods of diversification, such as digital currencies and other altcoins, as fears about rising prices and the potential for a downturn remain to influence stock markets. Ethereum, one of the leading ventures in the cryptocurrency sector, is expected to draw much interest from these investors.
Additionally, Ethereum’s successful Merge in the autumn shows its ability to progress and evolve. The blockchain network is now poised to become more efficient and cost-effective, positioning this network for further success in the future. And, who knows, maybe Ethereum can take some of the allure away from Solana. We’ll see.
Finally, one of Ethereum’s most significant advantages is its capability to host a broad range of crypto projects, not limited to altcoins. NFT communities and dapp developers can build their projects on Ethereum, adding to the platform’s versatility and appeal. As these assets continue to gain popularity, it is expected that Ethereum will continue to experience growth as well.
Polygon (MATIC-USD) is the digital currency specific to the Polygon Network, which was introduced as an ERC-20 token in 2019. Operating as a layer-2 blockchain, Polygon (formerly the MATIC Network) relies on a proof-of-stake consensus mechanism to validate transactions and secure its blockchain.
MATIC is the primary token for payments and governance on the Polygon Network, where it is utilized for transaction fees and grants users voting power. The entire Polygon software development kit (SDK) supports developing and building decentralized side chains that connect and work seamlessly with the Ethereum blockchain. Notably, this scaling solution for Ethereum is preparing to introduce its zero-knowledge Ethereum Virtual Machine (zkEVM) to the blockchain space.
Polygon is currently among the leading Ethereum’s scalability solutions as a layer-2 project. Simply put, a “layer-2” network consolidates transactions and processes them on the main “layer-1” blockchain, avoiding the excessive congestion that can be present on networks such as Ethereum.
Undoubtedly, Polygon’s success is expected to impact the overall value of MATIC positively. According to WalletInvestor, the upside potential with MATIC is impressive, with experts predicting this geek could rise more than 86% over the next year. As such, 2023 presents an opportunity for crypto investors to consider long-term investments in Polygon.
On the date of publication, Chris MacDonald has a position in SOL, ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.